Maybe you have read our report yesterday regarding new V8s that Lexus is working on currently.
Well, there are reasons that Lexus develops those new engines, and it looks like that is a part of a big plan Lexus is gruadually unfolding, step by step, and cautiously.
The first part of the plan is the next generation LS flagship sedan. Two years ago, when Lexus revealed the “new” LS, some of us were disappointed by the fact that the new flagship sedan, is actually not a “real” new design. Eventhough Lexus officially said more than 3,000 parts are new, many other parts are carried over or slightly revised, and the 2013/2014/2015 LS is still based on the same 4th-gen LS’s XF40 platform, which was debuted 8 years ago, in the 2006 North American International Auto Show.
The market sales performance also reflects this fact. Compared to 2013, there is a clear downward trend for the 2014 monthly sales volume. Please see the following Lexus LS sedan sales statistics chart below:
Month | 2013 US Sales | 2014 US Sales |
January | 1077 | 634 |
February | 803 | 589 |
March | 980 | 744 |
April | 700 | 712 |
May | 996 | 693 |
June | 691 | 582 |
Compared to the newly introduced Mercedes-Benz W222 S-Class, the Lexus LS is now facing strong headwind. See the sales stat for the S-Class:
Month | 2013 US Sales | 2014 US Sales |
January | 938 | 1281 |
February | 923 | 1789 |
March | 1216 | 2299 |
April | 1103 | 1909 |
May | 1190 | 2173 |
June | 841 | 1780 |
Guys working in Lexus are clever. Obviously they do not want this situation to keep going for long. But from some media reviews, it looks Lexus executives are not worry about this too much. Why? Because they have got an ace in their hands. News surfaced recently suggests that Lexus is hard working on a completely redesigned LS flagship; it is scheduled to be revealed around 2 years from now – that is 2016, and be sold as a 2017 model.
Remember the new V8 engine series we mentioned yesterday? Yes, you may see them in the 2017 Lexus LS. This means the current 4.6L V8 will be retired, and replaced by the juicy 5.0L V8. Although the 600hp twin-turbo V8 is still pending for upper management’s green light, we will see the other two power plants when the new LS initially debuts.
The second part of the plan is the “high-output” version of the already-high-output RC-F. Equipped with the 600hp-level twin-turbo 5.0L V8, Lexus is calling it the RC-FS, and selling MSRP will be around $120k. Debut day is set to be in late 2016 or 2017.
The final part is the revived SC coupe, which will be based on the LF-LC Coupe concept car. We believe the joint cooperation between Toyota and BMW will bring some BMW traces into this project. Again, all of the three 5.0L V8 engine options will be available on this car. We do not know the timeframe that Lexus is going to release this model. But from the big actions mentioned above for the LS and RC-FS around 2016 and 2017, we believe Lexus will push the SC to market in the same timeframe, to achieve the maximum marketing effect.
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