December Sales Were so Good That Lexus Ran Out of SUVs in January

Matt Posky
by Matt Posky

December is typically a peak month for automotive sales, especially among premium brands. With more holiday-themed ads than the majority of its competition, Lexus always sees the year’s final month of sales as its best. However, it did so well last December that January saw a 26 percent drop in sales due to an exhausted supply of sport utility vehicles.

With the narrowest of exceptions for the LX, last December turned out to be the best month in the history of all of Lexus’ SUVs. The bad news is that most of those sales came at the expense of the automaker’s sedans, which saw comparatively low sales. At around 41,000 units, December 2016 wasn’t all that much different from 2015. However, cars made up a significantly smaller piece of that pie.

Lexus’ LS and GS faired particularly poorly against December 2015’s monthly sales, with the GS only managing 1,325 of the previous year’s 3,423 units.

Jeff Bracken, general manager of the Japanese Luxury brand, told Automotive News that he partially faults the LS engine swap (no, not that kind) for its lackluster sales. “If there’s a question, it’s the V6 twin turbo,” Bracken explained. “I think there are still some journalists that are like “Nah, but it isn’t a V8.'”

The company downplays the V6 on its website, going so far as to highlight the old model’s V8 engine in the preliminary menu. However, that LS-specific issue doesn’t account for the overall sedan sales slump or why the company was in such short supply of SUVs last month — changing consumer preferences do. Sales of Lexus utility vehicles comprised about half of last month’s below-anticipated volume, while Bracken admits that the overall market was around 65 percent.

Bracken wants to see Lexus get RXs and GXs back onto lots to meet demand, however, he doesn’t anticipate supplies to normalize until at least March.

[Image: Toyota Motor Corp.]

Matt Posky
Matt Posky

Consumer advocate tracking industry trends and regulations. Before joining TTAC, Matt spent a decade working for marketing and research firms based in NYC. Clients included several of the world’s largest automakers, global tire brands, and aftermarket part suppliers. Dissatisfied, he pivoted to writing about cars. Since then, he has become an ardent supporter of the right-to-repair movement, been interviewed about the automotive sector by national broadcasts, participated in a few amateur rallying events, and driven more rental cars than anyone ever should. Handy with a wrench, Matt grew up surrounded by Detroit auto workers and learned to drive by twelve. A contrarian, Matt claims to prefer understeer and motorcycles.

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  • Kwik_Shift_Pro4X That was my last chance to get a new reg cab, 8 ft box with the 5.7 V8 in 2WD.A used one that hasn't been abused will be tough to find.
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  • SCE to AUX If my grid power was unreliable enough to justify a Powerwall, I wouldn't drive an EV.
  • Bd2 This is so awesome I'd drive it right through the front of TTAC's headquarters if they had one
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