Why did Lexus lose money on LFA?
The Lexus LFA was a high-performance supercar produced by Toyota's luxury division Lexus from 2010 to 2012. Despite being a technological marvel and a critical success, the LFA ultimately lost money for Lexus due to its extremely high development costs and limited production run.
Exorbitant Development Costs
The Lexus LFA was an ambitious project that took over a decade to develop. Lexus invested an estimated $375 million into the LFA's research and development, which included the creation of a brand-new V10 engine and an advanced carbon-fiber reinforced polymer (CFRP) body. This massive investment resulted in a car that cost Lexus around $375,000 to produce per unit.
Limited Production Run
Lexus initially planned to build only 500 LFA models, later increasing the total to 600 units. This small production run was not enough to recoup the enormous development costs. Even at a retail price of $375,000, Lexus likely lost money on each LFA sold.p>
Niche Market Appeal
The Lexus LFA was designed as a halo car to showcase Lexus' engineering capabilities, but it appealed to a very niche market of supercar enthusiasts. Its high price tag and limited availability made it inaccessible to most luxury car buyers. This further hindered Lexus' ability to sell enough LFA models to turn a profit.
Lessons Learned
The Lexus LFA project was a bold and ambitious undertaking, but it ultimately proved to be a financial loss for the company. Lexus learned valuable lessons about the challenges of developing and marketing a low-volume, high-cost supercar. These lessons have likely informed the company's approach to future halo car projects.p>
Did Lexus make money on the LFA?
Two decades after the LS went on sale, Lexus rolled out the automaker's first and only supercar thus far. The program is rumored to have cost approximately $800 million, and – as you might already know – each and every single example of the breed was sold at a loss.
Why did the Lexus LFA flop?
With its price set over $375,000 initially, and its current average price of $807,512, the LFA ended up preventing most of its audience from even considering purchase. Coupled with the poor timing of its release, competitors like the Nissan GT-R R35 had already claimed its place as a top Japanese supercar.
What is the cheapest Lexus LFA ever sold?
Q: What was the lowest recorded sale price for a Lexus LFA? A: The lowest recorded sale price was $440,000 for a 2012 LEXUS LFA on Oct 24 2020. Q: What is the average sale price of a Lexus LFA? A: The average price of a Lexus LFA is $933,320.
Why is the Lexus LFA so rare?
Why It Was Only in Production for Two Years. Lexus built just 500 examples of the LFA—436 “regular” models and 64 Nurburgring Package variants—between 2010 and 2012, 190 of which were for the US market. The decision to keep the production run so low appears to have been intentional.
