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Lexus in no hurry to be a big player in China

For a while now, China's spiraling wealth, population and development has had the world's luxury automakers in an expansionist fervor, with many executives exhibiting the sort of gleefully maniacal behavior historically reserved for gold-rush prospectors. Yet Toyota, of all companies, is exercising a surprising amount of caution in the Asian nation.
As The Wall Street Journal notes, Toyota's premium brand, Lexus, sold all of 64,000 vehicles in China last year, while BMW cleared its books of 326,000. In fact, it didn't even bother entering the market until 2005, while rival Audi built its first car in the market a decade and a half earlier. Even now, Lexus doesn't build any vehicles in China, and with the country's notoriously high tariffs on imports, that's a major disadvantage. Yet the business daily quotes Lexus executive vice president Mark Templin as saying that the brand is nowhere near ready to start building cars in the market. "We're not having those discussions about when we're going to go to China... We have a lot of work to do before we get to that point."
Part of that work includes establishing a more expansive dealer network - Lexus only had 99 stores as of 2012, while rival Mercedes-Benz had over two-and-a-half times as many, and it's still expanding. Adding a lot of dealers without having a goodly number of competitively priced offerings for them to sell may seem like an odd strategy, but Templin tells the WSJ that the goal is to "cultivate our image for quality and customer service and let the customers that we have go tell that story for us."

Production Lexus NX leaks online

The first photos of the new Lexus NX crossover have leaked onto the web over a week before its official debut at the Beijing Motor Show. These pictures are pretty blurry, but there is no mistaking that they show off the Japanese luxury brand's smaller, premium CUV.
While the teaser only gave us a glimpse at its pointed strip of LED running lights and angular grille, the new image proves that the CUV is definitely not afraid of sharp edges. However, compared to the original concept, it looks almost sedate. The production version drops the knife-like side mirrors for more conventional units, and the grille appears narrower. The vertical intakes at the edges of the front are dulled slightly but still present. The NX is indeed a polarizing vehicle - we'll be interested to see it in person. After all, we've grown to like the new IS after our first, shocking reaction. We should give Lexus some credit, too, for not following the premium CUV styling herd.
Seen elsewhere, these's an exterior photo that hints at a powertrain configuration. The bumper reads NX 300h, which likely indicates that there will be a hybrid version of the CUV. This is likely the same combined 220-horsepower system with a 2.5-liter Atkinson-cycle engine and electric motor found in the IS 300h in Europe. There is no word on whether that model will be sold here. It's rumored to be offered with a new 2.0-liter turbocharged four-cylinder as well. More details about the new Lexus are expected in China later this month.

Optimistic Lexus bumps US sales target higher

Last year Lexus sold 244,166 cars in the US, slotting into third place in the luxury segment behind BMW and Mercedes-Benz. Earlier this year Lexus said its target was 260,000 units in the US (which would still put it behind BMW's and Mercedes' numbers from last year), but Automotive News reports that it has raised its upper outlook to 270,000 cars.
The half-year pace hasn't been enough to make either number, but Lexus is gunning for a 15-percent gain in IS sales behind the arrival of the 2014 model, and this is also the first full year of sales of the new ES and LS. Lexus will most likely end the year in third place in the luxury segment behind BMW and Mercedes again, even if it does sell 270,000 units, but has said its prime directive is "good, steady growth."