The Ashes

Technology, Science and other news
September 8, 2009

New Lexus LF-Ch May Meet Resistance in America

Posted by : admin
Filed under : General

Although the 2010 Lexus HS 250h has just recently been released, Lexus is already planning on revealing their next model of car, the LF-Ch, an even more compact hybrid in comparison to the HS 250h. The revealing, set to take place in Frankfurt, will happen in the next week. Many people are excited about the vehicle because of its design as well as the fact that it will be a hybrid, making it an environmentally friendly vehicle.


Concept of Lexus LF-Ch.

The downfall comes into play when choosing the market for the vehicle. Unlike the HS 250h which was marketed in both Europe and the United States, the LF-Ch is aimed primarily at Europeans because Americans typically don’t like hatchbacks which the LF-Ch is. Then adding the fact that hybrid vehicles are typically more expensive and it is obvious that Lexus is hitting an uphill battle in regards to their American market.

Europeans are used to the higher priced vehicles, so there is more room for a luxury vehicle’s cost. Because Lexus is competing with a lot of the favorite diesel cars in Europe, they understood that they needed a unique approach to guarantee that their vehicles would sell. The answer came with the compact hybrid.

The fundamental issue for Lexus is finding a way to get into America. Because Lexus is typically more expensive to start with, then the hybrid component makes it more, and then Americans dislike hatchbacks.

Lexus is hoping that because the driving comfort of the hatchback appeals to city people, they might be able to sell the cars in an American market. In the end, though, it will require fine tuning of the price to ensure that it is set at the right amount. If Lexus charges too much, no amount of driving comfort will make it appealing to Americans.

The hybrid aspect is appealing to Americans and that may be the selling point. As much as the cost is higher than what people like, Americans are afraid of the constant fluctuating of oil prices and therefore are looking to buy hybrids in larger amounts because they want safety. So, Lexus may have a chance to sell a typically undesirable vehicle in a constantly changing environment.

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