Why did Lexus stop the GS?
Lexus, the luxury vehicle division of Toyota, made the decision to discontinue its GS sedan model in 2020. This move was part of the company's broader strategy to streamline its product lineup and focus on its more popular and profitable models.
The Rise and Fall of the Lexus GS
The Lexus GS was first introduced in 1993 as a mid-size luxury sedan, positioned to compete with the likes of the BMW 5 Series and Mercedes-Benz E-Class. The GS was known for its smooth ride, refined interior, and reliable performance, and it quickly gained a loyal following among luxury car buyers. However, over time, the GS struggled to keep up with the competition, as other automakers continued to innovate and introduce newer, more technologically advanced models.
As consumer preferences shifted towards SUVs and crossovers, the GS's sales began to decline. Lexus saw an opportunity to focus on its more popular and profitable models, such as the RX and NX SUVs, as well as the ES and IS sedans. The decision to discontinue the GS was part of a broader effort to streamline Lexus's product lineup and allocate resources towards the models that were generating the most sales and revenue.
Factors Behind the Discontinuation
- Declining sales: The GS sedan had been struggling with declining sales in recent years, as consumer preferences shifted towards SUVs and crossovers.
- Competitive landscape: The mid-size luxury sedan market had become increasingly crowded, with newer and more technologically advanced models from competitors like BMW, Mercedes-Benz, and Audi.
- Lexus's product strategy: Lexus decided to focus its resources on its more popular and profitable models, such as the RX and NX SUVs, as well as the ES and IS sedans.
By discontinuing the GS, Lexus was able to streamline its product lineup and allocate more resources towards the models that were generating the most sales and revenue. This decision was part of a broader strategy to ensure the long-term success and profitability of the Lexus brand.
