Why was the Lexus GS350 discontinued?
The Lexus GS350 was discontinued after the 2020 model year as part of a broader shift away from aging mid-size sedans toward SUVs and electrified models, driven by shifting consumer demand and the cost of updating the car’s platform.
GS350: A quick refresher on what it was
The GS350 was the V6-powered variant of Lexus’ mid-size GS sedan. It occupied a space between the more compact IS and the larger LS, competing with rivals like the BMW 5 Series and Mercedes E-Class. Typical GS350 configurations offered a 3.5-liter V6 engine producing roughly 311 horsepower, with rear-wheel drive or all-wheel drive options and an 8-speed automatic transmission. The model carried Lexus’ emphasis on a balanced blend of performance, luxury, and comfort—characteristics that defined the GS lineup for years.
Core specifications and positioning
Below is a snapshot of what defined the GS350 during its run in the market:
- Engine: 3.5-liter V6, about 311 horsepower
- Drivetrain: RWD or AWD depending on configuration
- Transmission: 8-speed automatic
- Market position: Mid-size luxury sedan aimed at enthusiasts who valued driving dynamics and a premium cabin
As part of the broader GS family, the GS350 shared its underpinnings with other GS variants and incorporated Lexus’ evolving interior tech and safety features, all while aging alongside newer competitors.
Why the GS350 was discontinued
The decision to retire the GS350 reflected a combination of market dynamics and corporate strategy rather than a single flaw in the model itself.
Factors that contributed to the discontinuation:
- Declining demand for mid-size traditional sedans as buyers shifted toward SUVs and crossovers
- Rising costs to refresh or redesign the aging GA-L platform to meet evolving safety and emissions standards
- Strategic refocus on higher-margin, high-demand segments (notably SUVs) and electrified powertrains
- Intense competition from established rivals in the mid-size luxury segment
- Lexus’ broader rollout of TNGA-based platforms that favor newer models and drivetrains
- A push toward electrification and hybridization across the lineup to meet regulatory and consumer expectations
In effect, Lexus concluded that continuing to invest heavily in a dying segment would be less advantageous than reallocating resources to its growing lineup of SUVs and electrified vehicles. The return on investment for a GS refresh did not compare favorably with the opportunities offered by other models.
What Lexus offered instead and what this means for buyers
With the GS line retired, Lexus directed shoppers toward vehicles that offer similar luxury and performance credentials, but in a format that aligns with current market demand.
Key alternatives and strategic shifts include:
- Lexus IS: A sportier, more hands-on sedan in the compact luxury segment, appealing to drivers who wanted engaging dynamics in a smaller package
- Lexus ES: A more comfort-focused, spacious mid-size sedan that emphasizes ride quality and reliability
- Lexus NX/RX: SUVs that cater to growing demand for versatile, family-friendly crossovers with luxury appointments
- Lexus’ electrified lineup: Hybrid and plug-in options across several models, plus plans for more electrified vehicles in the future
In short, buyers seeking a GS-like blend of performance and luxury typically turn to the IS for sportiness or the ES for everyday comfort, while crossover-SUV models fill the practical niche now occupied by traditional sedans.
Timeline of the discontinuation (high-level)
Industry observers and Lexus communications indicate that the GS ceased production for the U.S. market after the 2020 model year, with similar status in some other markets. The decision was part of a broader global realignment rather than a one-off change for a single region.
- 2019–2020: Lexus announces the GS will be retired after the 2020 model year in the United States and other markets
- 2020: Final GS350/GS variants roll off the line in regions where the model is ending
- 2021 onward: Lexus shifts focus to SUVs, hybridized models, and electrified offerings across its lineup
This timeline reflects a broader industry trend: automakers are streamlining portfolios to emphasize profitable segments and meet evolving regulatory and consumer preferences.
Summary
The discontinuation of the Lexus GS350 stems from a confluence of a shrinking market for traditional mid-size sedans, the high cost of refreshing an aging platform, and a strategic pivot toward SUVs and electrified models. Lexus' response was to consolidate its lineup around more popular, higher-margin vehicles—namely crossovers and electrified powertrains—while offering buyers compelling alternatives in the IS, ES, and NX/RX segments. The GS remains a notable chapter in Lexus’ history of balancing driving dynamics with luxury, but the brand’s current strategy places priority on models aligned with today’s demand and future electrification goals.
What was the last year of the Lexus GS 350?
The last model year for the Lexus GS 350 was 2020, as production of the midsize luxury sedan ended after that year. Lexus discontinued the GS in favor of its SUV lineup, and the 2020 model year marked the end of the GS's four-generation run.
This video is a review of the 2020 Lexus GS 350, showing the interior and exterior features: 58sCar ConfectionsYouTube · May 8, 2020
- Production ended: The final Lexus GS 350 cars were produced in August 2020.
- Reasons for discontinuation: The decision was driven by declining sales, a market shift towards SUVs, and competition from other luxury brands.
- Impact: The 2020 model year is considered the last farewell for the GS line, which had been in production since 1993.
This video is a review of the 2020 Lexus GS 350 F Sport, highlighting its features and design: 42sKirk KreifelsYouTube · Dec 11, 2019
Why did Lexus stop making GS?
Lexus discontinued the GS sedan due to low sales, which were a result of several factors, including a market shift towards SUVs and crossovers. Declining sales were also driven by increasing competition from rivals and strong internal competition from the more popular and less expensive Lexus ES. Lexus opted to focus its resources on higher-volume models instead of continuing to produce the GS, which had become an economically unviable model.
- Weak sales: The most significant reason was the GS's consistently weak sales figures, particularly compared to other models like the ES and RX crossovers. By 2019, Lexus sold just over 3,300 GS units compared to more than 50,000 ES models.
- Market shift to SUVs: The auto industry, including the luxury segment, has seen a major consumer preference shift towards SUVs and crossovers, leading to a decline in demand for sedans like the GS.
- Internal competition: The Lexus ES was a major competitor, as it offered a more affordable and comfortable alternative that appealed to many buyers who would otherwise consider the GS. Some buyers also found the two models looked too similar, making the ES the more logical choice.
- External competition: The GS struggled to compete with rivals like the BMW 5 Series and Mercedes-Benz E-Class, which were perceived as offering a more prestigious brand and sometimes better technology and performance on paper, even if more expensive.
- Economic and resource allocation: With sales in such a slump, it was no longer economically sensible for Lexus to continue producing the GS. The company chose to allocate its resources to developing and promoting its more popular and profitable models, especially its successful lineup of SUVs and crossovers.
Will there be a 2025 Lexus GS?
And traffic sign recognition. The GS also features a 360°. Camera system front and rear parking sensors. And an advanced headsup display to help keep your eyes on the road.
What is the most common problem with Lexus GS 350?
Top Lexus GS350 Problems
- Brief Rattle or Knocking Noise on Initial Start Up.
- The Inside Rear View Mirror May Become Discolored.
- Software Upgrade for Navigation & Heater Control Displays.
- Lexus GS350 sputtering issue with check engine light and traction control warning.
