Why was the GS 350 discontinued?
The Lexus GS 350, a mid-size luxury sedan, was discontinued by Toyota's premium brand Lexus in 2020 after a nearly two-decade run. The decision to discontinue the GS 350 was part of a broader shift in Lexus' product lineup as the brand focused more on SUVs and crossovers to meet changing consumer preferences.
Declining Sedan Sales and Shift to SUVs
The primary reason for the GS 350's discontinuation was the declining popularity of sedans in the luxury car market. Consumers have been increasingly gravitating towards SUVs and crossovers in recent years, a trend that has impacted sales of traditional sedans across the automotive industry. This shift in consumer preferences led Lexus to reevaluate its product portfolio and focus more on expanding its SUV and crossover offerings.
The GS 350 had been struggling with declining sales for several years prior to its discontinuation. In 2019, Lexus sold just 5,378 units of the GS 350 in the United States, a significant drop from its peak sales of over 20,000 units per year in the early 2000s. This decline in sales made it difficult for Lexus to justify the continued production and development of the GS 350.
Streamlining the Lexus Lineup
In addition to the shift in consumer preferences, Lexus also decided to streamline its product lineup to focus on its core models and eliminate slower-selling vehicles. The discontinuation of the GS 350 was part of this broader strategy to simplify the Lexus lineup and allocate resources towards developing and marketing its more popular models, such as the RX and NX SUVs.
By discontinuing the GS 350, Lexus was able to redirect its resources and attention towards developing and marketing its more successful SUV and crossover models, which have become the backbone of the brand's sales in recent years. This strategic decision allowed Lexus to better align its product offerings with the changing preferences of luxury car buyers.
Conclusion
The discontinuation of the Lexus GS 350 was a result of the declining popularity of sedans in the luxury car market, coupled with Lexus' broader strategy to streamline its product lineup and focus on its more successful SUV and crossover models. While the GS 350 had been a long-standing model in the Lexus lineup, the brand's decision to discontinue it was a necessary step in adapting to the changing automotive landscape and better meeting the evolving needs and preferences of its customers.
