Lexus Planning to Triple European Deliveries by 2010

Auto producers have long understood that what may sell in one jurisdiction may only be of little interest in another. This has been true of subcompact cars here in the U.S., which sell extremely well up in Canada, and full-size SUVs which only sell moderately north of the border but have long thrived in the U.S., up until recently at least.

So why hasnt Toyotas Lexus division made a larger dent into Europes luxury segment? After all, Toyota has been selling the Lexus brand across the Atlantic for more than thirteen years, almost as long as it the luxury marque has been available in North America, or anywhere else in the world for that matter.

Considering its success in North America, why hasnt Toyotas Lexus division made a larger dent into Europes luxury segment?. (Photo: Trevor Hofmann, American Auto Press)

Lexus cars are more about precision engineering rather than passionate styling. (Photo: Trevor Hofmann, American Auto Press)

Of course its no wonder Lexus is having difficulties selling in Europe. Its cars are more about precision engineering rather than passionate styling. After all, Europe is a completely different market, one that has fostered radically individual styling exercises such as the Fiat Multipla, Renault Vel Satis and BMW 7- and 5-Series, and continued to support automakers such as Fiat, Renault, Peugeot, Citroen, and

Even the fact that Lexus rates way higher on J. D. Powers and Associates Vehicle Dependability Study than all the European brands, cant sway buyers in that market. (Photo: Lexus)

Today, some of the worst offenders, regarding dependability, are the Europeans according to J. D. Powers and Associates. Land Rover has the dubious honor of placing 37th out of 37 nameplates in the 2004 Vehicle Dependability Study (VDS), while Volkswagen only manages to eke out 33rd spot, ahead of Daewoo (which for the most part no longer exists as a brand), Kia and Isuzu.

Cracking the premium market in Europe will require a different strategy than in North America. (Photo: Lexus)

In North America, cars like that LS 430 are seen to match the Europeans in performance and luxury while surpassing in dependability, dealer service, and overall value. (Photo: Trevor Hofmann, American Auto Press)

Lexus, on the other hand, sits in 1st place in the IQS and the number 1 position in the VDS, and has for years. Its parent company, Toyota, has done well in European markets, however, showing that Europeans do value reliable service at the lower end of economic scale, but cracking the premium market will require a different strategy than in North America where Lexus is second in sales only to BMW, surpassing Mercedes-Benz and Cadillac while annihilating Audi and Jaguar.

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