Like Mercedes now (fwd CLA), Lexus has always sold well into lower end with the fwd ES. US market offerings by Mercedes are different that ROW, now those differences are narrowing.
The Mercedes badge is still the envy of nearly every major automaker as they continue a tight sales race with BMW, a first class challenge for an auto business to say the least. Despite the ups and lately the downs of reliability at Mercedes (CLA and S-class per CR have dragged down overall brand reliability lately), the perception of value in the lux car business is quite good.
For Lexus with a better LS to take a serious chunk of the new S-class business would be a great achievement. The 7 series BMW today will get left for dead, not desirable in the lucrative import-rich areas of California for example.
I am looking forward to seeing a exciting LS. When I see how Mercedes shook up the lux car business with the CLS, it shows being bold can be lucrative.