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Lexus regrets not doing 3-row CUV before RC coupe [UPDATE]

UPDATE: The source clarifies that rather than planning new small cars and crossovers, Lexus intends to rely on the ones it already has in its lineup. The text below has been revised accordingly. Automakers try to give its dealers (and by extension, their customers) the vehicles they're asking for. In Lexus' case, that's come down to a sport coupe and a three-row crossover. The Japanese luxury automaker ended up prioritizing the former with the launch of the RC coupe, but in retrospect, it feels it should have gone with the seven-seater instead. This according to Toyota's North American chief Jim Lentz in speaking to Automotive News at its provisional headquarters in Plano, TX. "In hindsight, if I was making this decision 10 years ago, seeing what I see today, the three-row [crossover] probably would have been the better play to come out first," Lentz to AN. "Strategically that's a more important vehicle to have than necessarily a lower volume, higher priced image product." Crossovers and SUVs represent big business for Lexus, whose five-seat RX (pictured above) is its biggest seller. The more compact NX is off to a solid start as well, but the brand's only three-row offerings are truck-based sport-utes like the GX and LX. Even without the three-row crossover, however, Lexus has been performing admirably. Rising sales have it trailing only BMW and Mercedes in the US market for luxury automobiles. Adding a three-row crossover to target the likes of the Audi Q7 and Mercedes GL will evidently be the next top priority for Lexus, but it's not the only plan the luxury brand has for the near future. Lentz indicated that the company plans to rely on its lineup of near-luxury and entry-level luxury sedans and crossovers moving forward, but isn't interested in going after the Mercedes CLA and Audi A3. "Luxury cars cost a certain dollar amount for a reason," said Lentz. "I don't want to cheapen my cars just to offer a lease that's $20 a month less."

Lexus has big expectations for small NX crossover

One has to wonder why it took so long for Lexus to enter the hotly contested compact premium crossover market. The brand itself projects some 36,000 sales for its brand-new NX, which is set to go on sale in the US in November. Add that potential to the 100,000-plus RX crossovers it sells annually in the States and Lexus looks poised to put some hurt on German rivals like Audi, BMW and Mercedes.
The vast majority of Lexus NX models imported to the States will be powered by a new 2.0-liter turbocharged four-cylinder engine that pumps 235 horsepower and 258 pound-feet of torque to either the front or all four wheels. Just 10 percent or so of NX models will get the 194-horsepower hybrid powertrain wrapped in NX 300h trim. Though not yet rated by the EPA, Lexus projects mileage ratings of 22 city, 28 highway and 24 combined for the turbo and 35/31/33 for front-wheel-drive hybrids (expect a one-mpg combined hit for AWD models with either engine).
In terms of sizing, the Lexus NX is dimensionally very similar to the Audi Q5, which starts at $37,300. Lexus hasn't yet released pricing information for its NX, but promises to be in the same range as its competitors. We note with interest that the larger Lexus RX starts at $40,795 - a little over $3,000 more than the Audi its NX will compete against - and wonder out loud if the Japanese automaker can undercut its German competitors in pricing with the NX. Expect official pricing info from Lexus closer to its on-sale date later this year.

Lexus eschews production in China over quality concerns

One of the more popular trends in the auto industry is setting up production operations in China. Mainstream manufacturers like Ford, General Motors and Volkswagen have done it, and even luxury marques like Audi, BMW and Mercedes-Benz have or will soon have manufacturing ops in the People's Republic.
One company that isn't building cars in China, though, is Lexus. The Toyota-owned luxury brand still manufactures all of its vehicles in Japan (aside from a few RXs, which are built at a Toyota factory in Canada). According to Tokuo Fukuichi, Lexus just isn't ready to build cars there yet.
"The German Three have a brand image that they have cultivated over the past century in their long history, but Lexus is not in people's minds like that yet," Fukuichi-san told Reuters UK.