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Lexus won't catch rivals this year: exec

Lexus outsold Mercedes and BMW in August, but the Japanese luxury brand cannot win the luxury title this year - or perhaps ever, a top executive said this week.

Lexus outsold Mercedes and BMW in August, but the Japanese luxury brand cannot win the luxury title this year - or perhaps ever, a top executive said this week.

There is an annual horse race for the luxury-sales crown and Lexus was first across the line for years up to 2010. But Lexus came third behind Mercedes and BMW last year, when a tsunami caused production cuts of most Lexus models.

This year, Lexus is on track for a 20 per cent increase in sales, said Tim Morrison, vice-president of Lexus sales and dealer development.

"We had a huge August," Morrison said, with 24,237 sales compared with 22,686 for Mercedes and 16,835 for BMW. "I thought they would be up near us, and they weren't."

But Morrison, who was in Birmingham for test drives of the new flagship Lexus LS, which goes on sale in mid-November, said he expects the German automakers to beat Lexus in September and carry their leads through the end of the year.

Year-to-date, the Mercedes brand is in the lead with 182,098; BMW is at 164,636 and Lexus has sold 150,604 through August.

"I don't think we have a chance this year," Morrison said, saying there is not enough time to make up the difference.

Lexus has nine new or refreshed models rolling out this year, including the GS, ES, RX and LS as well as the addition of three F Sport performance models that are attracting younger male buyers.

And while there is opportunity to grow sales in Europe when the region recovers, the German automakers will make up the most ground in their own backyard.

"So conceivably, we could never beat them," Morrison said. That's OK, he said, because the prime goal for Lexus is to be first in quality and customer satisfaction.

Leading the charge is the new LS sedan, available with a V-8 gasoline engine or as a hybrid with 8-speed automatic transmission, five suspension settings for different driving dynamics and collision prevention systems that apply the brakes.

Craftsmanship includes shimamoku wood on the steering wheel that involved 67 processes over 38 days to perfect, as well as creature comforts including climate control that heats or cools the seat after gauging the occupant's body temperature. The back-seat passenger can enjoy an ottoman and shiatsu massage.

Pricing will be announced closer to the sales launch date.