Lexus will not offer a car under $30,000 to take on CLA and A3 Sedan

Article by Christian A., on July 31, 2014

Cars such as the Mercedes-Benz CLA and the Audi A3 Sedan are becoming more popular in the United States due to the fact that they are priced below $30,000 and offer plenty of standard features. Asked if Lexus would offer such a model, executive vice president of the company, Mark Templin, said that they really can’t offer a vehicle with the quality, durability and reliability seen on other Lexus models.

Still, he added that they can offer a car under $30,000 but it wouldn’t be a Lexus, it would be a Toyota. Mercedes-Benz introduced the CLA back in September 2013 and now, this model comprises 11 percent of the brand’s car sales.

Templin considers that what the German carmakers are doing is not luxury. Moreover, publications such as Consumer Reports and USA Today weren’t convinced either by the Mercedes-Benz CLA validating Templin’s point that this is not luxury.

Still, Consumer Reports wasn’t impressed by the 2014 Lexus IS either and this is one of the least expensive models found in Lexus lineup.

Back in June, Mercedes-Benz sales increased by 7 percent to 151,624 vehicles, BMW increased by 12 percent to 157,382 units while Audi sales climbed 14 percent to 84,349. Lexus sales jumped 17 percent to 138,689, continuing their rebound.

For those who don’t know, Lexus dominated the US luxury sales for more than 10 years but its sales dropped when Toyota was hit by the unintended acceleration recall crisis and then by the earthquake in Japan.

Lexus currently offers the CT200h for $32,975 but this is not quite a popular model as according to Templin, models that cost more than $50,000 generate most of the sales.

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