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Lexus considers additional powertrains for the F Performance brand

As the European hardcore competition integrates small-displacement engines and hybrids ( Mercedes-AMG), as well as pure electrification ( Polestar), Lexus' F Performance brand sticks to eight-cylinder guns. The IS F, RC F, and GS F all use the same 5.0-liter V8, the brand's hallmark all the way back to the 2007 IS F. Things could be changing, though, to hear Lexus president Yoshihiro Sawa tell it during his first visit to the Goodwood Festival of Speed. He told Auto Express that "we cannot stick to the one solution when it comes to providing emotion." It sounds like a hybrid has the best chance of reality in the near-term. In April, Lexus said several powertrain options are "all on the table" for the primary brand, and we know Lexus is working on a more powerful hybrid system. Sawa broached the unexpected idea of "a pure F GT car, which could be a hybrid with an electric motor and a strong engine." Mention of a "pure F GT" has us wondering if Sawa means a version of the rumored LC F, or another vehicle above or beside that LC F. A trademark filing and heaps of rumor posit the LC F will have a 4.0-liter twin-turbo V8 pushing 600 horsepower or more. It's also possible Lexus plans to do something with the anticipated Gazoo Racing road-going supercar that reworks the hybrid powertrain from Toyota's LMP1 race car. An electric vehicle is under consideration as the F Performance brand works to "think of our own original way," and Lexus itself tries "to find a way to connect to the next era." Sawa knows performance buyers seek the feel and sound of an ICE, but says "we cannot stick to the one solution when it comes to providing emotion." The subcompact Lexus UX crossover will be half-electrified when it arrives later this year, one of its powertrains putting electric motors on the rear axle. The brand boss said "We will introduce an EV," but whatever they create needs to be both "lovable" and "have a luxury feeling," the former adjective leading us to believe the F sub-brand won't be going down that avenue just yet. The only reasonable candidate we've heard of so far as a battery electric version is the next-generation CT in Europe. Speaking of the CT, the compact hatchback has brought new buyers to the brand with a 70 to 75 percent conquest rate. Sawa said the spindle grille has done the same; sales have grown since the introduction of the polarizing face, so don't expect it to go away.

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.

Lexus back in luxury sales race after three-year absence

Think the only challengers for the title of best-selling luxury brand hail from der Vaterland? Wrong. Lexus outsold the likes of Mercedes-Benz for the second time in 2014 last month. In fact, the Japanese luxury marque's total sales this year are a mere 12,000 units behind BMW.
Lexus was able to move 26,921 vehicles last month, a year-over-year increase of 21.1 percent, respectively. Mercedes, meanwhile, was just barely beaten, moving 26,617 units in April. The difference, though, is that Lexus has made far bigger year-over-year gains than Mercedes, which recorded a YOY increase of just 4.13 percent.
This is particularly troubling for the Germans, as it marks a return to form for Lexus that we haven't seen since before the March 2011 earthquake and tsunami that decimated Japan. Prior to that natural disaster, Lexus enjoyed nearly a dozen years at the top of the luxury heap.