Tekknikal
08-31-2007, 12:01 PM
<img src="http://i160.photobucket.com/albums/t193/streetseen/Lexus/LF-A/97290443.jpg" alt="" />
This is a surprise. Lexus is normally very tight lipped on future products but this time they've given us some serious hints. Their new (and only) sports coupe, the LF-A, has been spotted before on the ring as it underwent continuous development. The car has been promised to be 200mph capable, feature carbon ceramic brakes, and 500+hp from under 5.0L of V10 might. But, we've had no idea of when it might come out or how much it might cost. Well that's changed. <!--more-->
Zeng Lintang, vice president of Toyota China announced that the LF-A would go on sale in China in early 2008 for over 2 million yuan.
What does this mean? First off, early 2008 is very soon for a car that we haven't even seen in the flesh yet. Sure, we've seen concepts, and even concepts close to production. But, we have yet to see the final, real deal, product. But because 2008 is so soon, that means that the car must already be in final form- since it takes several months to test a production vehicle, tool up a factory, etc. More importantly though, it also means that the production announcement should be coming very soon. But how soon?
Well, the LF-A was first announced at the 2005 Tokyo Motor Show. We got an update in 2006 but the TMS is held every other year. Since 2007 is a year for the Tokyo Motor Show, we expect a production announcement and unveiling then (which, by the way, we will be covering live and direct right here this November).
On the pricing issue, 2 million yuan is about $265k USD. But, you can't look at the conversion directly because cars cost different amounts in different markets due to taxes, pricing strategies, etc. However, if you look at the cost of the Lexus LS600HL sedan (1.6mln yuan) and compare it to the cost here in the US (a little over $100k) you can extrapolate that the LF-A may ring in close to $120k.
That's a bit more than the sub-$100k price I anticipated. If that's where the car comes in at, that has some pretty significant implications for Lexus's product strategies. Mainly, it says that Lexus feels their cars are not only of the highest tier, but are recognized as such by all people in all markets. When Lexus introduced the LS400 back in the 90s, they came to market at a discount. The car was every bit as good as its German competitors, but without an attractive price the market may not have given a serious look. Over time they proved that the LS400's excellence was no accident and today in many segments they ask a premium.
It seems that those times are gone. Despite the 911 GT3/RS, M6 and R8 being priced at around $100k-120k, the Ford GT and 911 Turbo being priced in the $150k range, and the F430 Ferrari being priced in the $175k range... Toyota decides to enter into the middle of the fray, against very established competition.
The strategy is bold because it means that the car has to be good. Lexus will have no excuses. There's no major value proposition. Let's hope they deliver, but will it matter? That's the second, more significant implication: Lexus may be looking at the enthusiast market as a group of people more interested in show than go.
The latest word from Lexus product managers is that their new M3/C63 competitor, the IS-F, will be priced in the $50-60k range. $50k sounds fine. $60k+? That's very close to C6 Z06, M5, 911 territory once you add options. While I don't doubt that the IS-F will be a fine car, I do doubt that's where Lexus wants to pit it. Let me put it this way: that's more than where the M3, Vette, and GT-R are all expected to be. And, each of those cars are considered epic, and not by anticipation, but by what their respective manufacturers have proven in the past.
Toyota is all about profits. They've discontinued all their coupes to pursue it. So, I'm quite sure they plan on selling a lot of these F cars. I really hope they don't get too aggressive with pricing however, because even though the cars are good- it may put them at a large disadvantage in the market... whereas a more patient approach would be much more likely to guarantee success.
At this point, you might be wondering what this has to do with you, especially if you don't plan on spending $60k, much less $120k, on a sports car. Simple: if Toyota/Lexus deems the market to not be ready for sports cars, they'll shy away. That means no sporty coupes or anything from Toyota at all. If the IS-F and LF-A don't go over well, what do you think that would mean for any potential new Supra? Or new Celica?
There's a lot on the line, and their stacking their chips. Let's hope things go well and we end up with more sporting entries from Toyota, besides the lonely Scion TC...
This is a surprise. Lexus is normally very tight lipped on future products but this time they've given us some serious hints. Their new (and only) sports coupe, the LF-A, has been spotted before on the ring as it underwent continuous development. The car has been promised to be 200mph capable, feature carbon ceramic brakes, and 500+hp from under 5.0L of V10 might. But, we've had no idea of when it might come out or how much it might cost. Well that's changed. <!--more-->
Zeng Lintang, vice president of Toyota China announced that the LF-A would go on sale in China in early 2008 for over 2 million yuan.
What does this mean? First off, early 2008 is very soon for a car that we haven't even seen in the flesh yet. Sure, we've seen concepts, and even concepts close to production. But, we have yet to see the final, real deal, product. But because 2008 is so soon, that means that the car must already be in final form- since it takes several months to test a production vehicle, tool up a factory, etc. More importantly though, it also means that the production announcement should be coming very soon. But how soon?
Well, the LF-A was first announced at the 2005 Tokyo Motor Show. We got an update in 2006 but the TMS is held every other year. Since 2007 is a year for the Tokyo Motor Show, we expect a production announcement and unveiling then (which, by the way, we will be covering live and direct right here this November).
On the pricing issue, 2 million yuan is about $265k USD. But, you can't look at the conversion directly because cars cost different amounts in different markets due to taxes, pricing strategies, etc. However, if you look at the cost of the Lexus LS600HL sedan (1.6mln yuan) and compare it to the cost here in the US (a little over $100k) you can extrapolate that the LF-A may ring in close to $120k.
That's a bit more than the sub-$100k price I anticipated. If that's where the car comes in at, that has some pretty significant implications for Lexus's product strategies. Mainly, it says that Lexus feels their cars are not only of the highest tier, but are recognized as such by all people in all markets. When Lexus introduced the LS400 back in the 90s, they came to market at a discount. The car was every bit as good as its German competitors, but without an attractive price the market may not have given a serious look. Over time they proved that the LS400's excellence was no accident and today in many segments they ask a premium.
It seems that those times are gone. Despite the 911 GT3/RS, M6 and R8 being priced at around $100k-120k, the Ford GT and 911 Turbo being priced in the $150k range, and the F430 Ferrari being priced in the $175k range... Toyota decides to enter into the middle of the fray, against very established competition.
The strategy is bold because it means that the car has to be good. Lexus will have no excuses. There's no major value proposition. Let's hope they deliver, but will it matter? That's the second, more significant implication: Lexus may be looking at the enthusiast market as a group of people more interested in show than go.
The latest word from Lexus product managers is that their new M3/C63 competitor, the IS-F, will be priced in the $50-60k range. $50k sounds fine. $60k+? That's very close to C6 Z06, M5, 911 territory once you add options. While I don't doubt that the IS-F will be a fine car, I do doubt that's where Lexus wants to pit it. Let me put it this way: that's more than where the M3, Vette, and GT-R are all expected to be. And, each of those cars are considered epic, and not by anticipation, but by what their respective manufacturers have proven in the past.
Toyota is all about profits. They've discontinued all their coupes to pursue it. So, I'm quite sure they plan on selling a lot of these F cars. I really hope they don't get too aggressive with pricing however, because even though the cars are good- it may put them at a large disadvantage in the market... whereas a more patient approach would be much more likely to guarantee success.
At this point, you might be wondering what this has to do with you, especially if you don't plan on spending $60k, much less $120k, on a sports car. Simple: if Toyota/Lexus deems the market to not be ready for sports cars, they'll shy away. That means no sporty coupes or anything from Toyota at all. If the IS-F and LF-A don't go over well, what do you think that would mean for any potential new Supra? Or new Celica?
There's a lot on the line, and their stacking their chips. Let's hope things go well and we end up with more sporting entries from Toyota, besides the lonely Scion TC...