CarBuyersNoteBook

Toyota is not exempted from the declining car buying market as they found that out through figures on sales for their $64,000 Lexus LS sedan and $67,000 Lexus SC Coupe. Demand for the best-selling luxury car brand in the U.S. dropped 37 percent in the first quarter, led a 43 percent plunge in sales of the costliest car models. The company has sacrificed profit margins to stanch the decline.

Toyota had its first annual loss in six decades as the global recession decimates auto sales. Surging incentives at other luxury brands including Bayerische Motoren Werke AG, Daimler AG and Audi AG has forced the Toyota City, Japan-based carmaker to more than quadruple discounts on Lexus models in the last two years, according to Edmunds.com.

U.S. Lexus sales shrank 27 percent in Toyota’s fiscal year that ended March 31, versus a combined 23 percent drop for Toyota and Scion models. While the premium line accounts for 12 percent of Toyota’s overall U.S. volume, analysts estimate it has generated a much larger portion of profit.

(Source) Bloomberg

Popularity: 4% [?]