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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."

Lexus LF-LC GT ready to hit Gran Turismo

Lexus might not have as rich a motorsport history as its parent company Toyota does, but it's not been without its racing activities – fielding the LFA in the VLN series at the Nurburgring and powering Daytona Prototypes in American endurance racing, but especially in Japan's own Super GT touring car series. That's where it recently rolled out the RC F GT500 is to replace the aging SC430, fighting for the championship last season right up to the bitter end. And this year it will bring a similar version of the RC F to GT3 racing as well. But before it does, the Japanese automaker has given us another racing machine to lust over – only this one is just for the virtual reality of Gran Turismo 6. Following the two teaser images that previewed its reveal, Polyphony Digital (the studio behind the Gran Turismo franchise) has revealed the new Lexus LF-LC GT. The latest in the Vision Gran Turismo series of virtual racers, the Lexus concept starts with the LF-LC show car revealed at the Detroit Auto Show back in 2012, but applies to it some of the same queues as the aforementioned RC F racer. The bodywork melds into extended aprons to keep the car glued to the digital track, there's a side-exit exhaust, carbon hood and roof, a giant rear wing, gargantuan diffuser and lightweight alloys on racing slicks. It's even got the rainbow-swirled white paint job of the RC F GT3 concept. Technical details weren't released, but then this concept wasn't designed to hit any real road or track any time in the near future, anyway. Related Video:

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: