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Toyota might stop importing certain models if tariffs imposed
Fri, Jul 20 2018In case you hadn't heard, the entire automotive industry, both domestic and foreign, is very much against the automotive tariffs proposed by the Trump administration. And while the industry is lobbying hard against such tariffs, companies are also having to consider what to do in the event they are passed. CEO of Toyota's North American operations, Jim Lentz, told Bloomberg that the company will certainly be reconsidering its strategy in the event of tariffs between 10 and 25 percent the cost of the car. He told the news outlet that, depending on how high the tariffs are, Toyota might just increase the price of some models, or stop importing them altogether. Toyota does build a large number of its cars here in the United States. The Toyota Camry, Avalon, Tundra, Highlander, Sequoia, Sienna models are all built here, as well as some Tacomas, Corolla sedans, and Lexus ES sedans. Many of those vehicles are big sellers for Toyota, too, so that's good for the company. But many other Toyotas are built outside the country. The Toyota RAV4, Prius range, C-HR, Corolla hatchback, Land Cruiser, 86, Yaris, Yaris sedan, Mirai, 4Runner, and the entire Lexus line are built in other countries. Some of these imports we're sure are safe no matter how high the tariffs might be. The RAV4 is the company's biggest seller, and the Prius sells well, too. Even if the Prius wasn't selling so well, the company would probably still sell it simply because it's an image builder. Somewhat related, we imagine Toyota would continue offering a handful of Mirais. The 4Runner, C-HR and Corolla hatchback would probably be safe, too. If these models stick around after potential tariffs are imposed, expect their prices to increase. But in the Toyota line, anything that's not selling well and has tight margins is probably doomed. Chief among them are the French-built Yaris hatchback and the Mexican-built Yaris iA sedan. Both cars have terrible sales, and being low-end cheap cars, they'll only sell worse with higher prices, and Toyota will lose money if it has to eat the tariff. The 86 is a similar situation in which it's a niche vehicle that has had weak sales and is being sold at a relatively low price. The Land Cruiser could go either way. It sells in small numbers, but it's already extremely expensive and continues to sell. Buyers might not be put off by spending some more.
Growing demand could bring more body-on-frame off-roaders to the Lexus range
Wed, Jan 13 2021Car-based crossovers are outselling truck-derived SUVs by a wide margin, but Lexus still sees a strong demand for models that offer true off-road capability. It hinted that it could soon increase its presence in this segment. Toyota's luxury division entered 2021 with two body-on-frame SUVs in its range: the Land Cruiser-based LX (pictured) and the smaller, more affordable GX. Neither is a high-volume model, but both fared shockingly well in 2020. LX sales in the United States fell by 4.4% to 4,512 units, which is a great result in a year when double-digit declines were common, and GX sales increased by 9.9% to 28,519 units. Clearly, off-roaders are in demand. "What we have seen at Toyota is that there's so much of an appetite for [off-roading] that I see that [moving into] the Lexus brand as well. There is an appetite, a customer desire, a customer push to see all brands giving them more options. I think it would be silly for Lexus not to travel down that path," explained Jack Hollis, the head of automotive operations for Toyota's North American division, in an interview with Automotive News. He added that his team has identified a "white space" in the Lexus range that could be filled with an additional body-on-frame off-roader. He didn't reveal precisely what he has in mind, but there are a few possibilities we can rule out. We know Toyota is wrapping up the development of the next-generation Land Cruiser, even if the SUV might not be sold in America, and seeing a next-generation LX seems like a given, but we don't think that's what Hollis was referring to. Moving into the space above the LX with an even bigger truck is highly unlikely. Similarly, the idea of a Lexus-badged SUV aimed at the Jeep Wrangler and the Ford Bronco is neat but unrealistic. Ford's hotly-anticipated born-again off-roader has captured the attention of executives, however. "Holy cow! They sold out that thing, and I think there's a strong market out there for authentic off-road chops and credibility. We're seeing that with [the Toyota] 4Runner as well. I don't think it's any secret that [the 4Runner] is not all that new, but it continues to set records, and it continues to grow volume," pointed out Lexus brand head Andrew Gilleland in a separate interview with Automotive News. Could we see a Lexus-specific version of the 4Runner? We certainly wouldn't rule it out, especially because making an upmarket variant of the SUV would help Toyota leverage the benefits of economies of scale.
Lexus LC500 Convertible gets Marine Blue interior and top ... in Japan
Thu, Sep 30 2021Japanese customers of the Lexus LC will soon have a wider selection of exterior and interior colors, including a stunning Marine Blue option exclusive to the LC 500 Convertible. The announcement came on Thursday, along with news of some minor handling improvements. The Marine Blue selection adds an tidy navy lid to the LC droptop, paired with a matching interior. However, the entire cockpit hasn't been slathered in blue. Instead, the cobalt hue has been applied judiciously to the steering wheel, dash pad, gear selector, and sections of the door panels. Most of interior is actually white, giving the two-tone cabin an elegant nautical feel. In addition, Lexus is introducing two new colors to Japan's LC palette: Sonic Iridium, which looks like yet another silver variant, and Terrain Khaki Mica Metallic, which looks like the beautiful Nori Green special edition we got in the U.S. and was previously exclusive to the convertible, is now available on the LC500 and LC500h coupe. Buyers can tick a box for new orange brake calipers as well. Lexus says they've also improved the LC's steering feel, ride quality, and controllability during high-g cornering by making minor adjustments to the coil springs, dampers, and stabilizers. Coupled with tweaks to the settings of the variable gear ratio steering and dynamic rear steering systems, Lexus says the overall responsiveness has been improved. Lastly, the LC coupe's panoramic roof now uses a tinted privacy glass. The Lexus LC menu has always been slightly different between the U.S. and Japan regions. For example, we get three interior options — tan, black, and a red-on-black two-tone. Even before Marine Blue Japan had a fourth, black-and-orange. It's not quite as Halloween-y as it sounds to American ears; the orange is more of a saddle brown. Lexus hasn't said whether Marine Blue (or any of the other improvements) will come to the U.S., but the LC is likely to receive a refresh soon. If the new interior is part of the package, we won't complain. Related Video This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.
