Lexus: 40% of our customers are over 60, fears losing young buyers

Even though Lexus has been the best-selling luxury brand since 2000 and outsold its closest competitor by 50,000 units in 2006, executives worry that the brand is lagging behind when it comes to attracting young buyers.

“The ES 350’s average age is 61, and their number-one occupation is retired,” says Jim Farley who recently dropped his position at Lexus to go work for Ford as vice president of marketing and communications.

“Forty percent of all our customers are over 60,” Farley says.

Lexus now fears that it will be a one-generation wonder with baby boomers. “When we look at the luxury market in 10 years, it’s going to change so dramatically,” said former Lexus General Manager Jim Farley.

But that doesn’t mean that Lexus will be going down the BMW 1-Series road any time soon. Lexus hopes that even if most young buyers can’t afford its new and aggressive Lexus IS-F, it will help bring their attention to the brand.

Powered by a 5.0 liter V8 engine the rear-wheel-drive Lexus IS-F boosts 417 horsepower and 371 lb-ft of torque. No official 0-60 time has been announced yet. The car will go on sale in Japan in December for a price tag of 7,660,000 Yen ($65,742). US sales are expected to begin in February.


Source: Automotive News (Subscription Required)

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