Lexus to lose the first luxury U.S. car market place

A name on a Lexus HS 250 h hybrid plate is seen at the Chicago Auto show on February 10, 2010.

Credit: Reuters/John GressBy Rick Popely

CHICAGO. SAT July 9, 2011 2: 11 am EDT

Toyota Motor Corp. (7203.T) to CHICAGO (Reuters) - Lexus brand will end its series of 11 years as the luxury brand top in the US market due to the loss of sales following the earthquake in the Japan and tsunami, said Mark Templin, Lexus Division General Manager.

Templin said sales in the United States Lexus fall 17% to about 190,000 vehicles in 2011.

The United States are the largest market for Lexus.

All the models Lexus, except the RX 350 crossover sport utility vehicle, are manufactured in the Japan.

Templin, has said the plant in Cambridge, Ontario, which makes the RX 350 will be back to full capacity in September.

Most of Japanese plants assemble the Lexus models have already returned full strength.

However, the RX 450 h hybrid SUV will be in full production until October. The hybrid is generally 15-20% of the sales of RX in the US market.

The United States the Lexus sales dropped 38% in June as traders failed to key products. At the end of the month, dealers were approximately half of their normal stock.

"June was at the bottom of the pit, and we turned the corner." We see the rest of the year is much better for us, "Templin said, speaking to journalists at a Lexus media event in Chicago."

Sales of Lexus dropped 18 percent in the first half of 2011 88,010 and German rivals BMW (ATM.)(DE) and Daimler AG (DAIGn.DE) has entered by Mercedes-Benz.

BMW sales increased by 13% to 113,705, and Mercedes-Benz rose by 7 per cent to 110,926. If the results of full year 2011 end as expected, it would be the first time that BMW has rewarded Lexus in the United States since 1997.

Contentée Templin the importance of the loss of the Crown in sales of luxury, and when asked if Lexus can regain first place in 2012, he said.

If we're no. 1 or not, I Don ' t care. We have never focused on that. Because someone else is selling more cars that we will we change our plan mid-year. »

SYNDROME OF BUICK?

Industry analyst Aaron Bragman of automotive Insight IHS said Friday the doldrums to Lexus goes further than the shortage of vehicles. It was suggested that Lexus may suffer stigma even as General Motors Co (GM.)(N) mark during the last decades Buick: car for the elderly.

Bragman said that it would be "a challenge" for Lexus reclaim No. 1 luxury sales in 2012, even with a production full because its range is not as appealing was once, and it relies heavily on the two models, the RX 350 and ES 350 sedan, a spin off of the Toyota Camry.

The RX so far this year represents 45% of sales to the Lexus United States and sedan ES 19 per cent.

"Such as Toyota, they have lost their momentum." They have a buyer of aging basic and many of their dealers are afraid, they become the next Buick. "Their new products have not resonated with younger buyers".

Age median buyer for Lexus is mid-1950s, and Templin said it was comfortable with that because it is a result of high fidelity.

The sportier models, as the sedan and hybrid sedan from CT attract young owners, said Templin.

(Edited by Bernie Woodall; editing by Carol Bishopric)

(This story has been corrected to display the name of hybrid model from Lexus RX 450 h.) Also adjusts citation to show that June was the "bottom of the hollow".)

Two fuel "ambitious shopper" ' 11 luxury rebound: frames (Reuters)

NEW YORK (Reuters) - rally continues to Wall Street and financial improvement in rich America, the hot streak of luxury spending will keep in 2011, and least are well prepared to join the party heels, executives said at the top of the detail page.

Rich shoppers have recovered much more rapidly into recession as the middle and lower-income consumers are hitting stores en masse to snap sweaters, designer dresses and diamond necklaces in stores such as Saks Fifth Avenue and Neiman Marcus.

Executives expect sales of luxury in the United States to continue to improve as the economy recovery Rus to middle class particularly as so-called "ambitious" — consumers shoppers with tastes of fantasy, but cannot afford more expensive - more confident elements.

"The shopper ambitious is coming back, because they love brands, but they still put their feet in the water," Saks Inc. (SKS)(N) Executive Director Steve Sadove said.

French luxury provider Hermes (HRMS).(PA) and LVMH (LVMH.)(PA) were among the first companies after the financial crisis has fluctuated to see sales soar as the ultra rich spoil themselves again.

Meanwhile, "affordable luxury" businesses such as Polo Ralph Lauren (RL)(N) and manufacturer of leather Coach Inc. (COH).(N) also benefited as the upper middle class took over spending. Polo Ralph Lauren shares reached a record level in December.

The rally in the stock market in 2010, which saw the Dow Jones Industrial Average increased by 11 percent, helped average customers woo road to stores.

"Many lost heritage has been restored," Ira Kalish, Director of the global economy at Deloitte, told Reuters.

Chain stores such as Saks suffered in some dramatic decline in the economic crisis. But she and her peers in rebounds.

In December, sales in stores open at least Saks one year, or same store sales increased 11.8%. Compete with operators store Nordstrom Inc. (JWN.)(N) and Neiman Marcus Group (NMRCUS.)(UL) reported strong earnings.

"It's a different world than a year ago," the Saks Associates told Reuters on the sidelines of the Conference of the National Federation of sale detail. "Consumers are related to how they feel about the stock market and markets are held up well.

Range top retailers have the additional advantage of restoring a customer willing and able to pay full price, unlike strings justify such as J.C. Penney Co (PCE.)(N) and Liz Claiborne (LIZ)(N) lucky Brands stores who still have to look at their prices.

"When they see something they like, price isn't a problem," said Claudio Del Vecchio, CEO of Brooks Brothers parent retail brand Alliance.

Even though many buyers of middle class are still taking care, they are ready to spend a little more on quality, says Inc. (M.N), Chief Executive Terry Lundgren of Macy.

Top chain of high-end Bloomingdale's Macy, which represents approximately 10% of the company's sales has been enjoying gains than other top high-end stores.

"People will buy expensive leaves or combinations because they last longer," said Lundgren.

Luxury spending boom also boosted Jewellers. Earnings of high percentage double-digit sales of jewellery range Tiffany & Co (TIF).(N) and Signet Jewelers Ltd. (GIS).(N) string of Jared for the holiday season has prompted two companies this week to raise prospects of profit.

Same difficulty Zale strong mid range holiday sales.

While U.S. luxury goods providers are waiting for the U.S. market recover more, many have turned to China for growth, including emerging middle class do not seem to get enough of Western products such as Hermes scarves, handbags Louis Vuitton and coach (COH).(N) portfolios.

A report by the Boston Consulting Group last month found that China would exceed the United States as the largest global market of luxury within five to seven years. Tiffany reported in Asia, to the exclusion of the Japan, holiday sales rose 23% during the holiday season of 2010.

At home, unemployment declined much faster for the educated Americans and rich, who happily spend again, which means "ambitious" luxury spending still have a way to go.

"Net income high, high net worth households will pave the way," said Analytics Chief Economist of Moody Mark Zandi.

(Reporting by Phil Wahba;) (Editing by Bernard Orr)