Quote:
Originally Posted by Crux
Also, you do realize that the LC is the best selling SUV worldwide right?
Toyota may drop it for the US, but it will still be making healthy sales on the rest of the planet.
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One other thought on the LC/LX vehicles vs Sequoias. The profitability of a Sequoia is far greater than an LC or LX and much more important to Toyota's bottom line when evaluating the sales of these vehicles in the US. The "cost" for building a Sequoia that's built here in the US is in $'s. The vehicle is of course sold in $'s.
The cost for building a LC or LX is in Yen since its built in Japan but sold in $s. It is very possible that the LC and LX's are actually losing money even at $75K & $85K given the current exchange rate of the $ to Yen. Selling more LC's and LX's may actually be losing money when measured against the Toyota US bottom line (which of course is what the US Toyota Executives are compensated on).
If the $'s weakness continues (which I believe it will for the foreseeable future), import products like the LC & LX will be at an extreme cost disadvantage to US built products like the Sequoia (and Corolla, Camry, Avalon, Sienna, Tundra and RX).
Imported products with high cost structures vs the $ (like the LC, LX, Tacoma, Highlander, 4Runner, GX, FJ, Rav, Yaris, Prius, ES, LS, SC, GS, IS and Scion line) will each be given strong scrutiny to determine if they still have a place in the US market based on volume, growth potential and cost structure.
The entire Lexus line is in a sharp decline in the US with a Q1 08 drop of -8.3% vs last year. As compared to a Toyota 1Q 08 decline -4.4% vs last year. With another qtr or 2 like this last one you can expect some significant changes in the product line-up. I wouldn't be surprised to see the LX and SC becoming fatalities based on low volume unit sales (regardless of growth rate.)