Lexus Suffers Through 2009

Lexus is the luxury car division of the Toyota Motor Corporation of Japan. The division was launched in 1989 in the United States, the largest market for Lexus vehicles. While originally designed for the American market, Lexus is now sold in 68 markets around the world. Ironically, Lexus vehicles were not introduced in Japan until 2005 even though most Lexus vehicles are produced in Japan. Lexus is the best-selling luxury brand in the United States, a position it has held since 2000 when it overtook the Cadillac brand of General Motors. The Lexus lineup consists of five sedan models, two convertibles, and three SUV models. The IS and HS sedans are compact sedans which compete against the BMW 3 series and the Cadillac CTS. The ES and GS models are mid-sized sedans that typically compete against the BMW 5 series and the Audi A6. The LS model is the flagship of the Lexus line, and competes against the BMW 7 series and the Mercedes S class. The two convertible models produced by Lexus are the IS C and the SC. These models compete against the Cadillac XLR and the Mercedes CLK.

The three SUV models each competed in the different segments of the SUV market. The RX is a crossover that typically competes with the Cadillac SRX and the BMW X3. The mid-size GX competes with the BMW X5 and the Mercedes GLK. The full-size LX is a competitor of the Cadillac Escalade and the Mercedes GL class. Lexus has invested significantly in the development and production of hybrid versions of its vehicles; Lexus currently produces hybrid versions of its GS, LS, and RX models. Lexus, like most automobile brands, suffered a sales decline in 2009 brought on by the fallout of the financial crisis of 2008 - 2009. Total sales for the 2009 model year came in at 260,087, a 17 percent decline from 2008.

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