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Toyota, Lexus to build more CUVs to meet surging demand

What was the biggest takeaway from the auto industry's 2014? Besides the fact that recalls are now a sad and mostly unremarkable part of a vehicle's life, it's that you can't be a competitive, mainstream brand in the US without a really strong line of crossovers, SUVs or pickups. We saw evidence of this as recently as Monday, when Hyundai unveiled its HCD-15 Santa Cruz Concept, and now we're seeing it again with Toyota. The company already has a comprehensive lineup of both mainstream and luxury CUVs and SUVs, although surging demand – sales were up 16 percent last year, Bloomberg reports – has led the company to increase its production tempo at the plants responsible for the RAV4 and Lexus RX. "The freeze is still in place until the end of March of 2016," Toyota's Jim Lentz told Bloomberg during this week's Detroit Auto Show, referencing the production bump at the Japanese and Canadian factories responsible for the models. "That hasn't changed. All indications are that it will lift, but right now it has not lifted." The increased sales are even spurring the brand to consider additional CUVs, including a compact that would slot in below the RAV4, Lentz told the business publication. Such a move would give Toyota a player in an increasingly competitive and important segment. In 2014 alone, mainstream brands, including Honda, Mazda, Chevrolet and Jeep, have announced brand new products destined for the compact CUV market. "We're going to have to look at how the market under RAV4 develops," Lentz told Bloomberg. "There's no question that it's going to. That's going to be the next growth spurt." Related Video:

Lexus parts prices cut in China amidst antitrust fears

It's been a topsy-turvy summer for foreign businesses in China ever since that country's National Development and Reform Commission and State Administration for Industry & Commerce launched a horde of investigations into anti-monopoly practices. When the law outlining monopolistic behavior was passed in 2008 foreign companies appreciated it, expecting it to illuminate some of the more opaque corners of Chinese government enforcement. That hasn't exactly been the case, and now as more than 1,000 auto-sector firms get investigated and pay huge fines to settle the nebulous charge of having prices that are too high, that hoped-for clarity is all but gone.
A recent news report said Audi, Chrysler and Daimler "would be punished for unspecified violations" concerning the prices of spare parts. Earlier this month Toyota said that Lexus China was being looked at, and before there's been any public notification of punishment Lexus has decided to lower the price of its replacement parts. From next month, customers will save an average of 26 percent on roughly 15,000 parts. It's unknown whether the move will appease authorities enough to end the investigation, which outside analysts have said targets foreign firms in China over domestic industry.

Here We Go Again: Lexus attacks EVs in new ad [UPDATE]

UPDATE: We got a comment from founding member of Plug In America Paul Scott on this ad. It's available below. The last time Lexus attacked plug-in battery vehicles in an ad, it had to apologize. The company is remaining on message, though, and has revisited a hybrid-vehicle advertising campaign that implies that driving a battery-electric vehicle is a big waste of time, because of all the charging you need to do. With the new spot, Lexus once again raised hackles of plug-in vehicle advocates because, once again, the accuracy is questioned. "The ad's message was that a consumer could [drive] a vehicle with advanced technology today, without sacrifice or change in habit." – Lexus spokesman Brian Bolain Lexus is running print ads (click to enlarge) in publications like Wired poking fun at EVs, the International Business Times says. Lexus highlights range anxiety in the spot, comparing the amount of time it takes to fully recharge an EV – and the idea that air conditioning and using the radio can shorten an EV's range – to the fun of just driving a Lexus. "The [print] ad was merely intended to paint a picture of life with a hybrid, which is basically no different from life with a traditional gas-powered vehicle, versus life with an EV, which can have challenges or at least uncertainties," Lexus spokesman Brian Bolain told AutoblogGreen. "In other words, at its core, the ad's message was that a consumer could participate in driving a vehicle with advanced technology today, without sacrifice or change in habit." The campaign picks up where Lexus's previous anti-EV campaign left off this spring. A website promoting Lexus's hybrids (and parent company Toyota's H2 vehicles) claimed that there was a hydrogen refueling infrastructure set up in 20 US states (not anywhere close to true). Plug-in advocates were also quick to note that higher-powered EV recharging systems can allow a plug-in to be recharged in far less than the four hours the Lexus site claimed. Of course, Toyota has a lot more skin in the game when it comes to hybrids and, starting next year, hydrogen fuel-cell vehicles than it does for plug-ins. Through August, the company sold just 842 RAV4 EVs and about 11,500 Toyota Prius Plug-in Hybrids in the US. That compares to almost 19,000 Nissan Leaf EVs and a Tesla Model S count that's likely close to that figure as well (Tesla breaks out neither monthly sales numbers nor US-only sales for the Model S).