New lineup electrifies Lexus dealers

Now in his third year as chairman of the Lexus National Dealer Advisory Council, John Iacono says the Japanese luxury brand lineup is about to add the RZ450e and TX crossovers.

January 22, 2023 06:49 AM

The RZ 450e crossover will be a Tesla rival.

Coming off another very profitable year despite having some of the industry's leanest inventories, Lexus dealers are looking forward to new products in their showrooms that will help them compete in segments where they weren't present, the chairman of the Lexus National Dealer Advisory Council said.

John Iacono, a partner in the 14-store BRAM Auto Group in New York City, is now in his third year as chairman of the Lexus council. Iacono said Lexus dealers are looking forward to adding the RZ 450e compact electric vehicle crossover to their lineup early in 2023, giving the brand its first real Tesla competitor.

"If you're [an EV] buyer right now, and you're buying from [Tesla], and you compare what the RZ 450e looks like, fit and finish, the interior of the vehicle, and the kind of support that we give a buyer when they come into a Lexus dealership, the ease of doing business, the care and support with service, it's going to blow them away," Iacono said. "The difference in levels of customer support is not remotely close between [Tesla] and Lexus, so the opportunities are going to be really tremendous for us."

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Lexus dealers are also excited to see the brand's new TX full-size, three-row crossover, which is scheduled to be shown in the second half of the year. The TX, a sibling vehicle to the coming Toyota Grand Highlander, gives Lexus a vehicle for growing families.

The TX "fills a gap that we've needed to be filled for a long time. It's a people mover. It's the right size. It's a car-based vehicle that is going to give the ride that that segment is looking for, and it has the size that we were missing," Iacono said.

He also said the rollout of the Lexus Interface infotainment system has allowed the brand to better compete with other luxury brands "because it has removed a negative that was keeping some people from coming to the brand. What we're bringing in, now especially with our new marketing, are new folks that, when you show them the vehicle, it does everything that they want and expect it to do."