Unlike Toyota's Unrealistic Lexus LC Sales Expectations, Toyota Supra Sales Goals Are Downright Sensible

Timothy Cain
by Timothy Cain

“You only produce one car less than the demand for the vehicle,” the late Sergio Marchionne said of Ferrari’s founding marketplace strategy. Of course, that translates to thousands more cars per year than it did in decades past. But Ferrari remains largely committed to that principle.

Now, in Ferrari-like language, Toyota says, “We’re operating on the basis that it’s better to have one too few than far too many,” when it comes to the new Supra.

Toyota spokesperson Nancy Hubbell revealed to TTAC early sales goals for the fifth-generation Supra that are distinctly tempered compared with the lofty expectations Toyota divulged the last time it launched a high-end coupe.

Followers of premium two-doors will recall that Toyota initially hoped to sell 400 copies of the Lexus LC per month in the United States. 4,800 sales per month for the $90K+ Lexus would have put it well ahead of virtually every competitor aside from the all-conquering Porsche 911.

But in its first full calendar year on the market, Toyota reported only 165 Lexus LC sales per month in the U.S., 59 percent short of the company’s goal. Instead of outselling competitors, the LC was easily outsold by vehicles such as the BMW 6 Series, Jaguar F-Type, and Mercedes-Benz SL. The Porsche 911 sold five times as often.

In the LC’s case, Lexus was falling back on a handful of reasons. The company believed that the brand’s strength in the U.S. – where basically half of all Lexus vehicles are sold – would drive LC demand. Lexus also believed that the LC’s affiliation with the LF-LC concept forerunner would pay dividends. And consumer clinics suggested the LC wouldn’t just steal sales from the 6 Series, SL, and F-Type, but also Aston Martin and Maserati.

Whether Toyota learned its lesson after the LC failed to win hearts and minds, or whether the more focused nature of the Supra as a sports car inherently alters the demand picture, Toyota’s stated sales expectations for the $49,990 Supra are clearly more modest.

“We’re focused on the first 1,500 Launch Editions for this year,” Hubbell says, “and will adjust supply based on demand.” (The Launch Edition is priced from $55,250.)

1,500 sales in the second half of 2019 would translate to around 250 Supras per month.

Granted, it’s fair to conclude Toyota’s stated expectation represents a healthy dose of false modesty. After all, the Launch Edition is only one of three Supra models – there are 3.0 and 3.0 Premium versions, as well. Such models wouldn’t exist for the first model year if Toyota had no intention of selling any.

But it’s also fair to conclude that, this time, Toyota’s analysis of the sports car market provides no room for overconfidence. In 2018, declining year-over-year U.S. sales were reported by the Alfa Romeo 4C, Audi TT, BMW 2 Series and 4 Series; Chevrolet Camaro and Corvette; Fiat 124 Spider; Ford Mustang; Jaguar F-Type, Lexus RC; Mazda MX-5 Miata; Mercedes-Benz AMG GT, SL-Class and SLC-Class; Nissan GT-R and 370Z; Subaru BRZ, and Toyota 86.

You get the picture. These aren’t friendly times for sporting vehicles.

The Toyota Supra is finally returning, but it returns only to fight its rivals over a small slice of a shrinking pie.

[Images: Toyota]

Timothy Cain is a contributing analyst at The Truth About Cars and Driving.ca and the founder and former editor of GoodCarBadCar.net. Follow on Twitter @timcaincars and Instagram.

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  • Sportyaccordy Sportyaccordy on May 30, 2019

    I've seen the LC in the flesh... it's a shame it doesn't sell because it is achingly gorgeous and brimming with presence. It's a car we claim to want but really don't deserve.

  • Stuki Stuki on May 30, 2019

    I'm guessing, or at least hoping, this is just marketing speak. Nothing is more destructive of quality, and value for money paid by the customer, than artificially constraining supply of a product. Selling "exclusivity" may be an easy way to skim some easy money off toffs and fanbois. Fine if you are a basketball club selling hats, or a race team selling road cars. But it's a poor reflection on a company with a reputation for engineering excellence, efficient production processes, and giving the customer more than he paid for, the likes of Toyota.

  • Redapple2 Love the wheels
  • Redapple2 Good luck to them. They used to make great cars. 510. 240Z, Sentra SE-R. Maxima. Frontier.
  • Joe65688619 Under Ghosn they went through the same short-term bottom-line thinking that GM did in the 80s/90s, and they have not recovered say, to their heyday in the 50s and 60s in terms of market share and innovation. Poor design decisions (a CVT in their front-wheel drive "4-Door Sports Car", model overlap in a poorly performing segment (they never needed the Altima AND the Maxima...what they needed was one vehicle with different drivetrain, including hybrid, to compete with the Accord/Camry, and decontenting their vehicles: My 2012 QX56 (I know, not a Nissan, but the same holds for the Armada) had power rear windows in the cargo area that could vent, a glass hatch on the back door that could be opened separate from the whole liftgate (in such a tall vehicle, kinda essential if you have it in a garage and want to load the trunk without having to open the garage door to make room for the lift gate), a nice driver's side folding armrest, and a few other quality-of-life details absent from my 2018 QX80. In a competitive market this attention to detai is can be the differentiator that sell cars. Now they are caught in the middle of the market, competing more with Hyundai and Kia and selling discounted vehicles near the same price points, but losing money on them. They invested also invested a lot in niche platforms. The Leaf was one of the first full EVs, but never really evolved. They misjudged the market - luxury EVs are selling, small budget models not so much. Variable compression engines offering little in terms of real-world power or tech, let a lot of complexity that is leading to higher failure rates. Aside from the Z and GT-R (low volume models), not much forced induction (whether your a fan or not, look at what Honda did with the CR-V and Acura RDX - same chassis, slap a turbo on it, make it nicer inside, and now you can sell it as a semi-premium brand with higher markup). That said, I do believe they retain the technical and engineering capability to do far better. About time management realized they need to make smarter investments and understand their markets better.
  • Kwik_Shift_Pro4X Off-road fluff on vehicles that should not be off road needs to die.
  • Kwik_Shift_Pro4X Saw this posted on social media; “Just bought a 2023 Tundra with the 14" screen. Let my son borrow it for the afternoon, he connected his phone to listen to his iTunes.The next day my insurance company raised my rates and added my son to my policy. The email said that a private company showed that my son drove the vehicle. He already had his own vehicle that he was insuring.My insurance company demanded he give all his insurance info and some private info for proof. He declined for privacy reasons and my insurance cancelled my policy.These new vehicles with their tech are on condition that we give up our privacy to enter their world. It's not worth it people.”
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