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8 things you should know about the Lexus LC 500h powertrain

Lexus unveiled the LC 500h today in The Netherlands, and I got to take a look inside its new hybrid system. On one hand it seems like a box of magic – it combines two seemingly incompatible transmission types into one package. But that's also the ingenious simplicity of the thing. We don't have all of the details on how it all works yet, but here's a rundown of the high points.Efficient business in front, low-key party in the back. What makes it all work is the mullet of transmissions. For the new hybrid transmission, Lexus used the Toyota Hybrid Synergy Drive/Lexus Hybrid System – which consists of an e-CVT with a planetary gearset and two electric motors (one for charging the battery, the other for motivation and regen) – and grafted a conventional four-speed automatic onto the back. The two units actually coexist in one package, with the e-CVT making things efficient and the automatic expanding the capabilities. So at the low end, the system can deliver more torque, and the engine can also run at lower rpm on the highway. It's all thanks to those fixed gear ratios, and it's surprisingly simple.Except it's not that simple. This is where the virtual gear ratios come in. Like current Lexus hybrids, the system has ratios it can call up with the e-CVT. In this case, there are six virtual ratios to complement the four real physical ratios, for a total of 10 "gears" at the transmission's disposal. (Not coincidentally, the V8 LC 500 coupe has a 10-speed automatic.) One of the four fixed gears is always engaged when the car is moving, so the 10 ratios come about from combinations of what the e-CVT in front and the automatic in the back are doing. In other words, all 10 ratios are variations on the four fixed gear ratios, which means that all 10 gears could be considered virtual.It won't use all the gears all the time. In Eco mode, the car will start off on electric power and skip the first couple of "gears." When it's set to Sport or Sport +, the engine will be engaged from a stop and the transmission will select the lowest ratio. The sportier modes will also ignore the top couple of gear ratios.It can drive faster with the engine off. In a Lexus GS 450h with the Lexus Hybrid System, for example, at speeds above 62 mph or so the engine has to start up. This is because something needs to take up some slack from the battery-charging motor-generator or else it will start spinning too quickly.

Consumer Reports no longer recommends Honda Civic

Consumer Reports annual Car Reliability Survey is out, and yes, there are some big surprises. First and foremost? The venerable publication no longer recommends the Honda Civic. In fact, aside from the walking-dead CR-Z and limited-release Clarity fuel-cell car, the Civic is the only Honda to miss out on CR's prestigious nod. At the opposite end there's a surprise as well – Toyota and Lexus remain the most reliable brands on the market, but Buick cracked the top three. That's up from seventh last year, and the first time for an American brand to stand on the Consumer Reports podium. Mazda's entire lineup earned Recommended checks as well. Consumer Reports dinged the Civic for its "infuriating" touch-screen radio, lack of driver lumbar adjustability, the limited selection of cars on dealer lots fitted with Honda's popular Sensing system, and the company's decision to offer LaneWatch instead of a full-tilt blind-spot monitoring system. Its score? A lowly 58. The Civic isn't the only surprise drop from CR's Recommended ranks. The Audi A3, Ford F-150, Subaru WRX/STI, and Volkswagen Jetta, GTI, and Passat all lost the Consumer Reports' checkmark. On the flipside, a number of popular vehicles graduated to the Recommended ranks, including the BMW X5, Chevrolet Camaro, Corvette, and Cruze, Hyundai Santa Fe, Porsche Macan, and Tesla Model S. Perhaps the biggest surprise is the hilariously recall-prone Ford Escape getting a Recommended check – considering the popularity of Ford's small crossover, this is likely a coup for the brand, as it puts the Escape on a level playing field with the Recommended Toyota RAV4, Honda CR-V, and Nissan Rogue. While Ford is probably happy to see CR promote the Escape, the list wasn't as kind for every brand. For example, of the entire Fiat Chrysler Automobiles catalog, the ancient Chrysler 300 was the only car to score a check – there wasn't a single Dodge, Fiat, Jeep, Maserati, or Ram on the list. That hurts. FCA isn't alone at the low end, either. GMC, Jaguar Land Rover, Mini, and Mitsubishi don't have a vehicle on CR's list between them, while brands like Mercedes-Benz, Volvo, Nissan, Lincoln, Infiniti, and Cadillac only have a few models each. You can check out Consumer Reports entire reliability roundup, even without a subscription, here.

Toyota's 'green bond' an industry first, quickly rises to $1.75 billion

Toyota is greasing the skids for more green car purchases with the announcement of a $1.75-billion bond designed to finance the purchase of high-efficiency Toyota and Lexus models. The Asset-Backed Green Bond is a first for the automotive industry and is making a lot of money available to buy or lease the following vehicles: any of the four Prius variants, Camry Hybrid, Avalon Hybrid, RAV4 EV, Lexus CT 200h and Lexus ES 300h. Originally, the bond was set at $1.25 billion, but Justin Leach, manager of public relations for Toyota Financial Services (TFS), told AutoblogGreen that demand was high and it was quickly oversubscribed. TFS has been looking at more ways to diversify its portfolio after a Diversity & Inclusion Bond that was announced in early 2013 and, with the new Green Bond, TFS is offering something for the "number of investors out there who are looking for investment opportunities in green." The way the money from the bond is used, basically, is that TFS takes the $1.75 billion and uses it to finance the purchase or lease of the nine vehicles listed above. As of right now, all the eligible vehicles are plug-in or hybrids, but the rules simply say that the cars in the program have to meet certain "powertrain, fuel efficiency and emissions" criteria. That means: Minimum EPA estimated MPG (or MPG equivalent for alternative fuel vehicles) of 35 city / 35 highway California Low-Emission Vehicle II (LEV II) certification of super ultra-low emission vehicles (SULEVs) or higher, which would include partial zero emissions vehicles (PZEVs) and zero emissions vehicles (ZEVs). TFS raises plenty of billions in other ways for the rest of the lineup, and got into asset backed securities in 2010, Leach said. Given the success of this first Green Bond, Leach said he expects TFS to keep this idea in its arsenal. "This one was so well received, I would be surprised if we didn't see it again," he said. "If anyone was going to do it, it should be Toyota, right?" Toyota Financial Services (TFS) Issues Auto Industry's First-Ever Asset-Backed Green Bond Bond Proceeds to Fund Consumer Loans and Leases for Toyota's Leading Portfolio of Green Vehicles TORRANCE, Calif., (March 24, 2014) – Toyota Financial Services (TFS) issued the auto industry's first-ever Asset-Backed Green Bond in the amount of $1.75 billion.