Friday, October 02, 2009
Lexus to step up profitability push
Lexus is to issue termination notices to its network as part of a continuing drive for profitability that's taking precedence over concerns around market share.
Lexus has a network of 50 sales outlets plus five service centres. Lexus GB director Belinda Poole said: "We believe that number gives us the right geographical spread, but we are looking at each centre's territory and will be issuing new contracts, including the postcodes we want them to cover."
Termination notices will be issued in December. The changes will come into effect in January 2011. "We will talk through the changes with the network. They have the choice not to work with us, but I believe they have confidence in the brand," said Ms Poole.
The purpose of some centres will change from sales to service, she said. Year-to-date Lexus' has a 2.1% share of the premium market down from 2.3% last year.
"We don't chase volume because we want to be profitable. Our key message is that we have to have a profitable network that delivers customer satisfaction," said Ms Poole.
DATED: 02.10.09
FEED: AW
