2008 Lexus LX 570 Not Easy to Find
The full-size, $74,700 2008 Lexus LX 570 SUV has the worst fuel economy rating of any Lexus, at a paltry 12/18 mpg city/highway.
There's no hybrid version, no derivative that burns E85 ethanol, and no higher-mileage diesel alternative. You can't even get one with four cylinders that shut off when cruising to conserve gas at a time when it’s topped $4 a gallon.
Yet if you want to order one today, you may have to wait up to 90 days to get one in the color you want with the options you want.
"There's only a four-days supply of LX 570s in dealer inventory nationwide," Lexus spokesman Greg Tomei said. A 60-day supply is considered normal. “We don't give the number out, but from the time it reaches the lot until it leaves the lot, the LX 570 has the quickest turn rate of any vehicle in our lineup."
And all this at a time when rivals such as Chevrolet and Ford are cutting production of their big SUVs thanks to high gas prices.
"When you've got the money to afford an LX 570, you've got the money to afford gas, even at $4 a gallon," said Global Insight analyst Aaron Bragman. "While some want a hybrid, some want the most audacious, most luxurious vehicle they can find."
Bragman, however, said the success of the LX 570 must be put in perspective.
"Lexus doesn't build 60,000 a year; rather, less than 10,000,” he said. “If the high-volume Chevrolet Tahoe was down to a four-days supply with gas at $4 a gallon, it would be a different story. It's not that demand is high; … supply is kept low so that the LX 570 is at a four-days supply of unsold inventory rather than at 100 days and has to be discounted."
Tomei said the sales forecast for the LX 570 is 9,500 units a year, and there are no plans to boost production in order to build dealer inventory. That's also about how many Range Rover SUVs that Land Rover sells.
At $74,700 per LX 570 however, each sale brings in considerable profit for Lexus.
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Ultra-luxury vehicles will always find a home. If one can afford $70,000 for a car then they can certainly handle $100 to fill the tank up every week. It's not rocket science.
since when do Ford and Chevy have a rival for an LX570? The Expedition and Tahoe are mainstream suv's geared at big families that may be sensitive to gas prices, while this is a luxury SUV- for people who can afford gas at any price.
Broq
Broq,
Yeah, I didn't really agree with his quote either. I think the LX570's success is very unusual. It's a vehicle made specifically for the North American market and so if it takes off here they will build more.
Dave T.,
What "success" are you referring to? Nothing about sales increases were mentioned in your blog. Correct me if I'm wrong but the low inventory is not because demand has suddenly skyrocketed where they can't manufacture them fast enough, but is exactly as the Lexus spokeperson said: to keep the supply low so they are not sitting on excess inventory. The LX570 is essentially a niche product where almost every one of them is going to be ordered exactly how the customer wants it.
I think Keith hit the nail on the head. Lexus sells about 800 of these per month (April 08). This is about 4 per dealer assuming there are 200 dealers. Compare this to the RX, which sells 7,160 in April. This is almost 36 per dealer per month.
Last year, FWIW, they sold only 240 in the month of April, or maybe 1 per dealer.
LX sales were up 207% in April from the year prior and I'm not sure if that was its first full month. 10,000 units a year isn't a small amount when the price STARTS at $74K. That was the point of the post.
And to add:
In 2007 Lexus sold just 2,468 LX 470, in 2006 5,595.
The LX570 is a success; it met Lexus' sales goals, however high or low those may be.
braq the ford and chevy rivals are the linclon navigator and the cadillac esclade gm and ford motor company vs toyota notor company get it