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China fines Toyota $12.5 million over Lexus price-fixing

BEIJING — China's market regulator on Friday has fined Japanese carmaker Toyota Motor 87.6 million yuan ($12.5 million) for price-fixing on its premium Lexus cars in eastern Jiangsu province, according to a document on its website. The decision comes as China steps up regulation over auto sales in the world's biggest vehicle market, where more than 28 million cars were sold last year. The anti-monopoly bureau of State Administration for Market Regulation said that between 2015 and 2018, the Japanese carmaker set a minimum sales and resale price for its cars in coastal Jiangsu province, which deprived dealers of pricing autonomy and harmed customers' rights. Lexus also fixed sales strategies in the region over the period, including offering customers discounts while asking them to purchase accessories at fixed prices, a sales tactic usual among individual auto dealers in China but frowned upon for carmakers. A spokesman at Toyota, Lexus' parent firm, told Reuters the firm acknowledged the penalty and respects the decision. He did not comment further. China's auto sales are declining, but Lexus' sales keep growing. It sold 180,200 vehicles in the first 11 months this year, a 21% jump from a year earlier. In June, China's market regulator imposed an 162.8 million yuan fine on Ford Motor Co's joint venture with Changan Automobile Group for violating anti-monopoly law. ($1 = 6.9927 Chinese yuan renminbi) Reporting by Yilei Sun and Norihiko Shirouzu. Related Video:

Why is there a huge bulge in 2021 Lexus IS 300 AWD's driver footwell? We explain

After an initial turn a few weeks ago for the 2021 Lexus IS first drive review, the revised luxury sedan has returned to the Autoblog garage for a second look. This middle-of-the-road IS 300 AWD pairs a 260-horsepower V6 with a six-speed automatic transmission and four driven wheels, and frankly it's the least interesting way to spec out the redesigned sedan. While there are cars in this segment designed to get a performance boost from their all-wheel-drive systems even in dry conditions, the IS isn't one of them. Adding insult to injury, you get stuck with a cramped driver-side footwell care of the engineering shenanigans that went into making this system possible.  While we've mentioned this particular compromise before, we rarely touch on the reasons why it exists in the first place. The fundamentals are fairly obvious; the standard IS utilizes a longitudinal, rear-wheel-drive powertrain. As is typical with this configuration, the transmission sits in a tunnel beneath the center console. This arrangement works just fine, provided you don't need to power the front wheels.  To do so in a traditional car like the IS requires a literal end-around maneuver involving the engine and transmission, which we've diagrammed for you below care of MSPaint. This is a bit simplified for the sake of this write-up, and it should be noted that this is not the only way to implement AWD in an inherently RWD platform, but it illustrates how the power for the front axle (red) and rear axle (blue) flows from the transmission to the drive wheels. To get juice flowing to the front axle, Lexus had to add a parallel output shaft, exiting the transmission from the front with enough clearance for the bell housing and engine, which sits between the transmission and the front differential. This requires quite a bit of lateral reach, meaning the housing has to extend much farther out than usual to accommodate it (yellow arrow). As a result, the all-wheel-drive transmission looks a lot like a sci-fi gun with a chunky drum magazine hanging off the side of it. The hump (above right) in the footwell is there to clear this protrusion. This basic configuration isn't unique to Lexus. In fact, if you look at a BMW xDrive cutaway, it's similar. So, why no "hump" in other cars? There are multiple factors, but to boil it down to what is most relevant, it's a combination of the resulting shape of the Lexus transmission housing and the size of the IS chassis.

2018 Lexus LC 500 Prototype First Drive

Chief executives aren't normally as candid as Akio Toyoda was last week. At the launch of hot new Lexus LC 500 coupe at the Detroit Auto Show, the chief executive of Lexus and Toyota and grandson of the company's founder, said that he'd received letters telling him that his Lexus luxury brand cars were dull and boring and that he agreed. "I took them to heart," said this tiny and forceful boss, "and I'm ensuring that the word 'boring' and 'Lexus' will never occupy the same sentence ever again." But boring has been an ongoing problem for Lexus. And for the last year I've been involved in trying to help solve it. Let me explain. Akio has made his extraordinary "Lexus is Boring" speech before. That was five years ago on the windswept golf courses at the Pebble-Beach Concourse d'Elegance at the launch of the fourth-generation GS sedan. With its new-look spindle grille, basking-shark air intakes, and razor-edged curves, GS was the first of the new-look Lexus models, but Akio still wasn't happy. In 2011, after 11 consecutive years of premium market leadership in America, Lexus had lost it to the Germans. Mercedes-Benz, BMW, and Audi didn't just build better looking cars, but more interesting and more fun-to-drive cars. "We're not just making a coupe, we're creating a new generation of Lexus." Lexus' shtick of reliability, immaculate-quality, hybrid gas-efficiency, golf-bag trunk optimization, and specification-adjusted value didn't cut it anymore. Akio, a keen race driver and petrolhead enthusiast, knew his cars needed a dynamic shot in the arm and a smoldering love affair with right-brain desirability. In short, he wanted Lexus engineers to build a car to bring a smile to drivers' faces. A tall order, then. And one which Koji Sato, deputy chief engineer on the LC had to consider carefully. As he says: "Akio's Pebble Beach speech was the starting point; we're not just making a coupe, we're creating a new generation of Lexus." With such a brief, and Akio's legendary peppery opinions in mind, Sato came up with a radical idea. Reckoning that sometime in-house teams can look so much in-house that they become blinkered, he decided he needed to open things up and recruit a team of outsiders. So, for the last year I, along with a small team of hand-picked journalists, race drivers, and keen-driving dealers, have been part of Sato-san's 'irregular army'. Why me? It's a good question.