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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.

Toyota projecting record profits, thanks in part to weak yen

Toyota retained its global sales crown in 2014 by selling 10.23 million cars in the calendar year. As the positive number might suggest, the Japanese automaker is doing extremely well financially, too. Although, some tougher times might be on the horizon. Toyota recently released its financial figures for the three fiscal quarters running from April 1 through the end of December 2014. Net profit jumped an impressive 13.2 percent to 1.727 trillion yen ($14.7 billion) for that period. It could be the Japanese automaker's most profitable time ever when the fiscal year ends in March, if things keep going this way, according to The New York Times. Toyota's own profit forecast for the 12-month period is also up by 130 billion yen ($1.1 billion) to 2.13 trillion yen ($18.1 billion). One key to the company's success is the low value of the Japanese yen, because it allows Toyota to make more money on each vehicle the company sells abroad. The currency is now worth relatively less than any time since the early '70s, according to The New York Times. Despite the rosy financial numbers, actual sales have started to fall, albeit a very slight amount. Through the three fiscal quarters, the company sold 6.73 million cars, a drop of just 45,365 vehicles. Toyota also reduced its forecast for the fiscal year to 9 million units, rather than the original estimate of 9.05 million. According to The New York Times, the shrinking Japanese auto market and difficulty in China might mean losing the global sales lead next year. For the US, sales jumped 145,411 units from April through December to a total 2.1 million vehicles. Operating income reached $4.27 billion, nearly 50 percent more than last year, according to The New York Times. Toyota Motor Corporation (TMC) Announces April – December 2014 Financial Results February 04, 2015 Toyota's global net income jumped 13.2 percent during the nine-month period (April 1– December 31, 2014) of the 2015 fiscal year. Global Financial Highlights: Global sales decreased by 45,365 vehicles to 6.73 million, with strong sales in North America and gains in Europe, offsetting decreases in Japan and other regions.

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.