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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 promises to unveil two updated models at Pebble Beach

Lexus has announced it will stage the global debuts of two updated models at Pebble Beach later this week. But it isn't saying which models they will be. However we can take an educated guess or two. Two of the oldest nameplates in the Lexus lineup at present are its flagship models: namely, the LS sedan and the LX sport-ute. The original LS was first introduced back in 1989, with the current fourth-generation model rolled out in 2006. (That's the Pebble Beach edition of the 2009 LS 600h pictured above.) It's undergone incremental updates in the decade since, with the last one having arrived in 2012. With much newer examples of the Mercedes S-Class and BMW 7 Series having recently been launched, Toyota will likely want to keep its flagship sedan up to date and competitive with newer rivals. Meanwhile the LX first launched in 1995 as a rebadged and luxed-up version of the Toyota Land Cruiser. The current third-generation model arrived in 2007, and was updated in 2012 alongside the aforementioned LS sedan. Sales of the LX have been floundering, spurring Lexus to potentially launch an entirely different flagship crossover to take its place. But before that happens, it is expected to launch another facelift for the existing model. Photos of that updated version have already leaked out and begun circulating, so we wouldn't be surprised to see the new LX 570 debut in Monterey as well. Both are expected to adopt more aggressive styling in line with other, newer models in the lineup, along with the latest technologies Toyota has to offer. Whatever form they take, we won't have to wait long to find out what Lexus has in store for us. The unveiling of both its freshly updated new models is set to take place on Thursday, so watch this space. Related Video: MEDIA ADVISORY - LEXUS TO UNVEIL TWO UPDATED MODELS AT PEBBLE BEACH August 10, 2015 -- Lexus plans to stage the global premiere of two updated models in Pebble Beach during the days leading up to the 2015 Concours d' Elegance. The reveal will take place at 7 p.m. PDT, Thursday, Aug. 13, and all materials will be available on www.LexusNewsroom.com simultaneously.

Lexus CT 200h could be replaced by sub-compact hybrid CUV

The Lexus CT 200h is an interesting vehicle that never really caught on. It's a sporty Prius in sleeker hatchback clothing and was aimed at the Audi A3 when it hit the market in 2011. Since then, though, the CT has averaged a meager 16,000 sales per year. For that reason, the hybrid hatch won't be redesigned at the end of its life cycle. And according to Lexus' European brand boss, Alain Uyttenhoven, it could be replaced by a crossover. While you may lament yet another CUV hitting the market, Lexus needs a small car that sells in big numbers. Uyttenhoven told Autocar the brand aims to move 100,000 units per year in Europe to "give us visibility in the market." For 2016, European sales are on pace to hit just 70,000 units, with 10,000 of those coming from the CT 200h. He sees an opportunity for the right little Lexus based on the recent nature of the European luxury market. View 29 Photos According to Uyttenhoven, "a full 50 percent of the European luxury car market exists below the [$44,600] mark," and the only model Lexus has at that point is the CT. Put another way, the company has a remarkably slow seller as its sole representative for half of an entire continent's luxury market. Enter the crossover. Replacing the CT with a crossover makes a great deal of sense. The body style is getting more and more popular by the day, especially in the sub-compact and compact markets. Adding a smaller model – below the current NX crossover but larger than the LF-SA concept shown in Geneva – would allow Lexus to challenge the Mercedes-Benz GLA, the BMW X1, and the Audi Q3. We're betting the small crossover would use the Toyota C-HR as its basis and add a Lexus-correct heavily creased skin. Hybrid power is a given for the European market, where almost all Lexuses sold are gas-electric, but a conventional gas variant could join it in the US. That would give Lexus three hybrid CUVs in three popular sizes, alongside the NX and RX. With a forthcoming RX-based three-row on the horizon, the brand would have a full lineup of crossovers ready to take over the world. We'll miss the quirky CT when it goes, but it's hard to stop volume-driven progress. Related Video: