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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:

Production Lexus NX small CUV headed for Geneva

Just five months ago, our spy photographers caught what appeared to be a mule for the forthcoming Lexus NX crossover with the body of a CT 200h for disguise. Then the LF-NX Concept CUV debuted at the Frankfurt Motor Show (it showed up at the Tokyo Motor Show as well) with a massive spindle grille and an extreme version of Lexus' sharp-edged new styling language on full display. Now Auto Express reports that a production version of the LF-NX concept will grace the Geneva Motor Show next March and go on sale next summer. If the names that Lexus trademarked a while back are any indication, it'll come in two trims, NX 200t and NX 300h.
Concept vehicles often look outrageously bold, with more extroverted styling than what eventually makes it into the production version. But Lexus reportedly will leave much of the LF-NX concept's styling alone for the production version, citing its customers' changing tastes.
"What we're finding is that these days customers want to be more expressive, so a lot of the concept's inherent design will come out in the finished car," says Paul Van der Burgh, Lexus' European director. "Why would you want something that looked like everything else in the segment?"

Lexus GX and LX future may be in doubt

With the debut of an all-new RX, Lexus is in a position for continued strong sales in the luxury SUV arena. The fourth-generation RX has grown, making room for the new NX model beneath it. But further up the ladder, things could change for the GX and LX. In an interview with Autoblog at the 2015 New York Auto Show, Lexus executive vice president Mark Templin gave some hints at the future of his brand's SUV lineup. "With NX and RX, we have a really good one-two punch in the crossover segments, and we think we can cover most of the markets with that," he said. As for the larger, three-row GX and LX models, which are built on a traditional ladder-frame chassis, things aren't so clear. Templin noted the the success of both models all over the world – the LX is the best-selling Lexus in Saudi Arabia. The same is true for sales here, he said: "We do very well with those products in the United States – GX has been a great product for us in the US for the last couple of years since its initial introduction. But the future of those vehicles longer term is in doubt because of regulations that are being driven by governments all over the world." Don't start stockpiling LX 570s in anticipation of shortages just yet. Templin didn't give any specifics; he just notes that tightening fuel economy and emissions regulations could affect product planning. In our analysis, if and when GX rides off into the sunset, Lexus still needs a midsize, three-row SUV to fill that gap. The most likely candidate for that is some variation on the RX. Whether or not that's the case, don't expect a BMW-like proliferation of body styles from Toyota's luxury division. "It creates problems. It creates complexity, that's hard for every step of the process," Templin said, nothing that too many models stresses the design department, manufacturing, and even dealers inventory selection. As for the bottom end of the lineup, Templin wouldn't comment on a compact SUV below the NX, saying "I think there are more potential options for us in the future, but we're not trying to grow the number of models we have in our lineup. It's not really what our core business is about." For now, Lexus and Templin are focused on launching the RX, which accounts for three of every 10 Lexus models ever sold. The 2016 model, available in RX 350 and RX 450h hybrid versions, goes on sale by the end of the year. Related Video: