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Industry Report: Lexus Undaunted by Lackluster European Sales

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Khatir Soltani

Today, some of the worst offenders, regarding dependability, are the Europeans according to J. D. Powers and

Even the fact that Lexus rates way higher on J. D. Powers and Associates Vehicle Dependability Study than all the European brands, can't sway buyers in that market. (Photo: Lexus)
Associates. Land Rover has the dubious honor of placing 37th out of 37 nameplates in the 2004 Vehicle Dependability Study (VDS), while Volkswagen only manages to eke out 33rd spot, ahead of Daewoo (which for the most part no longer exists as a brand), Kia and Isuzu. Volvo, which somehow still has an image of stalwart service only managed 30th place, while Mercedes-Benz, once the hallmark of quality, now places a rather pathetic 28th out of 37. Jaguar is better but not good enough at 25th, while Audi has made great strides to place in 22nd, still below average. The only European marques to place above the industry average set between 15th and 16th positions, were Saab in 14th place, BMW in 13th and Porsche in 10th - the only European to make the top 10.
Cracking the premium market in Europe will require a different strategy than in North America. (Photo: Lexus)
Porsche's future doesn't look promising, however, as its initial quality has dropped significantly since the inception of its Cayenne SUV, falling from 7th place in the 2003 Initial Quality Study (IQS) to 35th out of 37 nameplates in 2004, just ahead of Volkswagen which has slid backwards from a poor 24th to a shocking second to last place.

Lexus, on the other hand, sits in 1st place in the IQS and the number 1 position in the VDS, and has for years. Its parent company, Toyota, has done well in European markets, however, showing that Europeans do value reliable service at the lower end of economic scale, but cracking the premium market will require a different strategy than in North America where Lexus is second in sales only to BMW, surpassing Mercedes-Benz and Cadillac while annihilating Audi and Jaguar.

Khatir Soltani
Khatir Soltani
Automotive expert
  • Over 8 years experience as a car reviewer
  • Over 50 test drives in the last year
  • Involved in discussions with virtually every auto manufacturer in Canada