Lexus may be tarnished by ‘safety risk’, report says

Article by Christian Andrei, on August 27, 2010

Toyota Motor Corp., which has been reeling from the brunt of the massive recalls, will not be able to rely on the luxury Lexus brand to boost earnings after the GX 460 sport-utility model was called a "safety risk" by Consumer Reports.

The US magazine gave this Lexus model a "don't buy" recommendation. It's likely that this designation will diminish Lexus sales in the US, making it all the more tragic for Toyota as its overall deliveries dropped due to the massive global recalls of over 8 million vehicles.

Koji Endo, managing director of Tokyo-based Advanced Research Japan, said that there won't be anyone who would want to buy a car that has a "don't buy" rating. He said that even worse is the effect that this will have on the image of the entire Lexus lineup.

Before the magazine's designation, the Lexus brand had been unaffected for the most part by the recalls. To date, Toyota has had to endure US congressional hearings, a reprimand from Transportation Secretary Ray LaHood, and a proposed $16.4 million fine.

There were several Lexus models that were recalled due to floor mats that might trap gas pedals and result to unintended acceleration but none were recalled later to fix sticky accelerators.

In the US, Lexus sales rose 18% in the first three months of the year - accounting for 13% of Toyota's total deliveries in the country. Advanced Research's Endo claims that Toyota's priciest Lexus models earn at least 10 times the operating profit per vehicle of a Toyota Corolla compact car. [via autonews]

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries