New GS pricing to be sharp

Lexus says pricing for its new executive-segment GS will be sharp
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Lexus is sharpening its pencil. Set to launch a new GS series of executive class saloons to take on the likes of BMW's 5 Series and Mercedes-Benz E-Class, the marque has promised a return to competitive pricing in the segment.

The commitment to undercut the key German brands and return to "our original proposition of value for money "came last night in Melbourne when Lexus lifted the sheets on the F Sport variant of the new GS. The timing of the event corresponded with the car's first official unveil at the SEMA show in Las Vegas. Or so the official line went – in fact, Lexus South Africa gazumped the rest of the Lexus world displaying an F Sport GS in a local show last month.

The F Sport will be offered in both 350 V6 and 450h V6/hybrid versions of the new GS.

Lexus is at pains to point out it's more than just sport seats and a bodykit too. In addition to a revised interior, the sporting version of the fourth generation GS gets bigger wheels and tyres, unique suspension calibration with adjustable, adaptive dampers, a larger braking package with semi-floating front discs on alloy top-hats (a la AMG's 'composite' brake set-up), bespoke vehicle management settings (including a 'freer' version of the stability system) and a unique rear-wheel steering set-up.

The full new generation GS range will be debuted to the world press in the USA later this month. Lexus is claiming the car is a step change in terms of driving dynamics. It promises a true transfer of the lessons learned in the company's LF-A supercar.

Early third-party drive impressions of prototype cars suggest there's some substance in the claims. Our verdict will have to wait til we drive the car.

The new car rides on the same wheelbase as the outgoing model (2850mm) and matches it for overall length (4850), but the structure is all-new. Important takeouts include a body-in-white that is 14 per cent stiffer than the old model, yet 30kg lighter. New suspension designs front and rear feature forged alloy components and there are new engines for both the V6 and V6/Hybrid models (the V8 has been dropped from the range). In the latter the battery and its controller infrastructure has been shrunk to address a significant criticism of the outgoing model – compromised boot space.

Meantime, Lexus Australia execs are promising the new GS series will return the company to competitiveness in the segment. Lexus sells just a handful of GS each month in comparison to the 130-plus cars BMW and Mercedes move.

Peter Evans, Lexus Australia Corporate Manager, Marketing and After Sales told motoring.com.au that the new range would likely arrive with a "negative premium" compared to the current third-gen GS offering.

"Right now the existing GS starts at around $95,000. We're still to have our pricing negotiations [with Lexus head office] but it's safe to assume we have to arrive with better pricing to be competitive [against BMW and Benz]," Evans told motoring.com.au

The new GS range will likely comprise five models – and entry level 350 and F Sport and Sports Luxury versions of both the 350 and hybrid 450h rangetopper. Evans hinted that $80,000 was a likely starting point for the new range.

"That's where everybody starts. I don't think we're going to chase a 2.0-litre Audi [pricetag] down to $77,000. But you've got to be around that price [$80K} to be competitive. That's certainly our objective -- we'll see how we get on... There are so many factors [that influence final pricing]."

Evans admits the current GS is "out of step" with pricing in the segment.

"This old generation is probably our least competitive [offering] from a price view point for a whole bunch of reasons. But every car we've launched recently has demonstrated that we've moved [back] to our original value for money proposition and we trust this [new] car won't be any different," Evans opined.

Lexus will not seek to offer directly comparable models to the German marques' four-cylinder petrol and turbodiesel variants when the car arrives Down Under towards the end of the first quarter of 2012. The 'base' 350 will feature a 233kW 3.5-litre V6 coupled with a six-speed automatic box.

Evans asserts the smaller engine versions of the E-Class, 5 Series and A6 are not volume sellers for their respective marques.

"You'll be surprised at what a smaller contribution [models like] the 520d and E 220 CDi make – they're not their volume sellers at all... The volume sellers are petrol sixes."

Evans says it's "way too early" to make volume calls of the new GS, but says Lexus is aiming for substantial growth in the segment. Indeed, Lexus Australia boss Tony Cramb went so far as to dub the new car a "gamechanger" for the marquee.

"You'll be able to buy a GS 350 for the same price as a [BMW] 525i or less... Our car is going to be great value for money -- great bang for your bucks," Evans stated.

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