Toyota is using Spain to test whether a different approach for Lexus will help the brand finally crack the European luxury market.
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According to Automotive News Europe, Spain is the only European market where distribution of Lexus and Toyota brands is handled separately and Toyota is using the country as a test market for the different approach.
Grupo Berge, Spain’s largest importer, handled both Toyota and Lexus distribution until 2002. That year Toyota took control of its distribution but let the Spanish company continue to handle all Lexus imports.
The world’s No. 3 carmaker is searching for a way to spark Lexus sales, which trail Audi, BMW, Mercedes-Benz and other competitors in Spain, its fourth biggest European market behind the UK, Germany and Italy.
Lexus is USA’s No. 1 luxury brand – with sales of more than 259,755 units last year – but struggles in Europe where it sold less than 20,000 vehicles in western Europe last year.
Pedro Escudero, general director for Lexus Spain, said Toyota has separated the two marques to focus on managing the Lexus brand.
“We have developed an exclusive dealer network, with specific sales teams,” Escudero said.
Lexus sales in Spain climbed 20% to 1,400 units in 2003. Escudero expects sales to reach 3,000 units in 2005. Each dealer is expected to invest at least €750,000 on the showroom, which must be at least 300 square metres.
Yoshio Ishizaka, Toyota’s executive vice-president in charge of overseas operations, said Lexus sales have the “potential to go up to 50,000” a year in Europe in the medium term.
