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Amid Toyota Troubles, Lexus Execs Rescued the GS Sedan

The new Lexus GS 350 almost didn't happen. What does that say about Toyota?

By Sam Smith Aug 29, 2011 6:47AM
2013 Lexus GS 350. Image courtesy Toyota."I didn't want this car." 
-- Akio Toyoda, president, Toyota Motor Corp., on the 2013 Lexus GS 350 (left).

Toyota has spent the past few years dealing with a host of problems: quality issues, the unintended acceleration scandal, a hugely uninspiring product lineup. Last week, at the Monterey, Calif., unveiling of the 2013 Lexus GS 350, company president Akio Toyoda revealed an unsurprising bit of information -- even inside the company, many people aren't sure what its brands need to be.

Toyoda didn't come out and say it, of course. For one thing, such a move would be foolish and bad for business; for another, he likely didn't (and doesn't) believe it. But what he did say was telling. In a presentation to journalists, he noted that the new GS, due in late 2012, exists only because Lexus's regional management teams fought him "like crazy."

There are a few obvious comments here. First, Lexus vehicles aren't exactly known for getting people riled up, even within Lexus. (Nice bunch, Toyota Motor, but its representatives and engineers have a well-deserved reputation for being straight-laced.) Second, the new GS's nose is ... interesting, in the same way that this guy's face is interesting. And third, the GS has long been a slow seller in both Europe and America. Put those together, and the "crazy" defense of the model is a bit surprising. But it's worth paying attention to. Here's why. 

2013 Lexus GS 350. Image courtesy Lexus.
As Automotive News notes, 18 months ago, the GS was on the chopping block. Toyota was embroiled in resolving the unintended acceleration crisis and escalating quality issues. Lexus, its once-unstoppable luxury brand, was something of a rudderless ship, with the big-dog LS sedan the only compelling, and unique, product on offer. Toyoda wanted to kill the GS in order to consolidate Lexus's lineup, and because it made for a weak business case against the German competition. 

That the model stuck around is telling. The current GS (below) is an out-of-focus effort: it's too stiff and uncompromising to be a compelling luxury sedan, yet too distant and uninvolving to effectively battle cars like the Audi A6 and BMW 5-Series. The 2013 replacement doesn't improve on its predecessor visually, though it offers an interesting interior and will likely be priced attractively. It also uses the same 3.5-liter V6 and six-speed transmission found in the current GS (the optional V8 will no longer be offered, though a hybrid V6 will). The chassis is new but familiar; the front suspension mostly carries over, but the rear suspension has been redesigned. 

2008 Lexus GS 450h Hybrid. Image courtesy Lexus.
In other words, development money was spent on this car, but not a lot of it. 

This is an odd choice -- save a model from the grave, but don't make a big effort -- but it's indicative of where Toyota is at the moment. The company is desperately trying to find its footing in an unsteady market, one where it's rapidly losing ground to both the Koreans and Detroit. Once-formidable opponents like Honda are faltering, its cars oozing insecurity. The new Camry, unveiled last week, looks to be a better machine than its predecessor, but is packaged in yet another forgettable design. And the media has been having a field day with Toyota as a whole for months; even the most timid of journalists have thrown punches the Big T's way. 
 
 
In short, in throwing the GS back into the market, Lexus is testing the waters. It doesn't know what or where or how its brand needs to exist, and this is a step toward finding out.  

The GS hasn't been an important, strong-selling car in years, and this one isn't likely to make any waves. But the late-day save of the model comes at a time when Toyota is reorganizing its management structure, attempting to streamline communication and give those close to the customer and market more voice. This gives hope, because it shows that Toyota -- and Toyoda -- recognize a need for change. 

The management teams that defended and saved the GS did so because they believed in something. Lexus has long believed in little save customer service and quality, and while those things are very important, they mean nothing without good product. The revived GS may not be the answer to Lexus's problems, but if we're lucky, it'll be a good first step.

[Source: Automotive News]

47Comments
Aug 30, 2011 8:37AM
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All you guys are crazy. "The 2013 replacement doesn't improve on its predecessor visually" Are you blind? Night and day comparison. The 2013 looks way better. It does look dated. Dated 2013! Reliability, lets not forget that. Mercedes and BMW are just not as reliable. Please don't ever compare Lexus to GM. That's like comparing a steak to the stuff you pull out of a turkey.

Aug 29, 2011 8:07AM
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Lexus does need an identity.  They make wonderfully smooth, comfortable and reliable cars who generally have great resale values.  Then they created the RX, and everything changed.  Suddenly that became their cash cow, and it remains so.  But somewhere along the line, they lost their way.  I agree with this article that the LS is the only Lexus really worth considering.  When Lexus debuted, they did land a few punches to Mercedes and Jaguar, but the company they really hurt was Cadillac.  At the time, both Cadillac and Lexus wanted to build smooth, comfortable cars.  Lexus just did it better than Cadillac; and consequently sent them into a downward spiral that wasn't corrected until the Escalade (while not a great product) started putting money back in their coffers.  Then Lexus wanted to be 'sportier'; now it wants to be the 'green' luxury company.  Personally, i think they need to decide on what their cars are going to be.  While I'm a sport sedan type of guy, I think if Lexus commits to being the quietest, most comfortable luxury cars with a touch of sport wrapped in clean design,they'll be ok.
Aug 30, 2011 10:50AM
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hey simfilms,

 

"toyoda" refers to Akio Toyoda, President of Toyota Motor Corp.  The author is correct.  You, alas, are not.

Aug 29, 2011 11:01AM
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This article points out what I've been saying for awhile now.  Toyota lost its way over a decade ago and quality has suffered.  Further, they seem to have put all their R&D efforts into the Prius and have neglected the rest of the Toyota, Lexus and Scion models.  Even as their flagship brand, Lexus has become stale and uncompetitive which is why they're losing market share to Mercedes and BMW.  I can tell you from personal experience that Lexus quality isn't what it should be to compete with other premium brands. 

Like the butchered 2012 Camry, this new GS is a half-baked effort to redesign a car.  Worse, like the Camry.....and just about every other Toyota, Lexus or Scion.......the platform and power train are just carryovers from last year's model, and they were dated and falling behind the competition already.  These cars have no soul, no personality just like your regular bland and boring Toyota brand.  While I can believe that they were seriously considering dropping the GS altogether, I'm truly baffled that the one thing the GS line had going for it, the V8, has been dropped!  Now its even less appealing than before.
 
Aug 29, 2011 9:39AM
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Lets face it, the Buick La cross helped hurt this car for about 20,000 less. The japanese designs don't excite people and the new camry is a good example of this. The Chevy cruise is single handily putting the low end Toyotas on ice. BMW, Audi and the CTS are hurting Lexus mid range cars. They need better looking cars and fast.
Aug 29, 2011 10:06AM
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Lets face it, the Buick La cross helped hurt this car for about 20,000 less.
The only thing I can think of in the GS's favor is that the GS is rear wheel drive instead of the Buick's front wheel drive.  But not sure if that difference is worth $20k.  Personally, I think the old GS300 was probably the best GS Lexus produced.  The one powered by the 2JZ inline 6 engine and directly replaced the old Toyota Cressida.  There is something about that model that just seemed right.

Aug 30, 2011 4:54AM
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and others people talk about not knowing things are...
At one time, I was a hardcore TOYOTA enthusiast. I owned three of them, and worked on several more. I can tear a TOYOTA apart and put it back together. I did timing belts, engine swaps, transmission swaps, head and head gasket replacements, rear-end differentials, conversions.

And I say TOYOTA has lost it. They are irrelevant. What they do have in Europe, like the diesel Avensis, and Lexus IS 250d, they do not sell here. Well then, ditch TOYOTA until TOYOTA comes to her senses.
Aug 29, 2011 12:51PM
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the platform and power train are just carryovers from last years model, and they were dated and falling behind the competition already.
Beltway nailed this one. Toyota and Honda have old platforms and especially powertrains with old technology. That means they're gonna be trailing in both power and fuel efficiency for a long time to come. Plus, 4 and 5 speed transmissions, really? That era's over, and so is the era of record sales based only on name equity.
Aug 30, 2011 6:24AM
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I'm truly baffled that the one thing the GS line had going for it, the V8, has been dropped!  Now its even less appealing than before.

I agree with Beltway. The styling on this newer model is horrible.  It's too angular in the front, with too much going on, and no longer looks refined.  Look at gen 1, 2, and 3. All of those looked refined and dignified. Now the front of the thing looks like a cross between a deli meat slicer and a shark.

 

If you'll notice historically, reviewers of this car have pointed out that at its weight and size, in order for it to have the character desired of a RWD sports-type sedan, it NEEDS the V8.  The 400/430 V8 engines are fantastic, smooth things.  Flatten it, and you're doing 100 in seconds; cruise at 80mph, and you can't hear it.  Truly I think the loss of the V8 is a bad marketing plan on their part.  Why limit a buyers option to spend MORE money with you?  You have the engine already, it's not like the LS is going to lose it's V8 any time soon. So just pop it in there!

Aug 30, 2011 10:26AM
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I've owned two GS300's. The latest since '2000 with 115,000miles and it runs flawlessly. Everything works and the paint still shines like a new penny. I can't bear to sell this one even though a few of the other old retired goats at the club have offered me much more than I could ever get from a dealer. The other reason I'm not selling is being retired does not afford me the old income to spend $50,000, or so, to buy another.

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