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Krafcik says US Gov. shutdown is slowing Oct. auto sales

The government shutdown is eroding consumer confidence in the auto market, says John Krafcik, CEO of Hyundai's US sales unit, and could lower October sales by as much as 10 percent, Automotive News reports. "It's that anxiety that keeps customers, potential buyers, on the sidelines when making a big purchase like an automobile," Krafcik says, adding that industry sales could be off by five to 10 percent in October compared to September.
The fourth quarter, which started October 1, usually consists of increased auto sales as dealerships clear their lots to make room for the next year's models. Leading up to the fourth quarter this year, the auto industry was doing well in the fragile, recovering US economy, although September deliveries decreased by 4.2 percent, due in part to this year's Labor Day sales being recorded for August.
To help its customers, Hyundai announced it is deferring new-car loan and lease payments for furloughed federal workers until they're called back to work and also offering them a three-month payment deferral if they buy a new Hyundai in October. "We have already had requests from over a thousand people to have their payments deferred," Krafcik says.

Construction of Lexus' first US assembly line underway

The ES is Lexus' top-selling sedan, but the Japanese luxury marque has never manufactured it outside of Japan. In fact, Lexus has never made any cars in the United States, one of its largest markets worldwide. But that's about to change.
Yesterday, construction began in Georgetown, Kentucky, on the first Lexus assembly line in America, the first concrete (or steel) step in a $360-million expansion of Toyota's plant in the Bluegrass state that will create 750 new jobs. The expansion was announced last April by chief executive Akio Toyoda at the New York Auto Show.
Once the new assembly line gets online in the fall of next year, Toyota plans on building some 50,000 units of the ES each year. Lexus sold a record 72,581 examples of the ES in the United States last year - 30 percent more than the previous year - so Lexus will either have to import some more from overseas or leave some buyers disappointed.

Lexus adds RC 200t, RC 300 AWD for 2016

Do you really like the Lexus RC 350, but wish it had just a bit lower cost of entry? Good news for you then, as Lexus has just added a pair of new models to its two-door lineup. The RC now mimics the powertrain options for the 2016 IS. The new RC 200t slashes the cost of entry for the two-door Lexus, but it's unclear by how much. Lexus hasn't published pricing for the 241-horsepower, 258-pound-foot 200t, although we can come up with a ballpark based on the four-door model. The IS 200t starts at $38,265 compared to the IS 350's $41,810 price. Assuming the cars are similarly scaled, there's roughly a $3,500 price difference between the 350 and the 200t, so our best guess for the RC 200t is $40,200. As for the new RC 300 AWD, it uses the same 3.5-liter V6 as the IS 300, offering up 255 hp and 236 lb-ft of torque with standard all-wheel drive. As for the RC's other V6 option, the RC 350 will continue to be offered up with both rear- or all-wheel drive. Power output remains pegged at 306 hp and 277 lb-ft of torque. Scroll on for the full press blast on the new RC, which will also come with a smattering of smaller changes for 2016. Related Video: LEXUS RC COUPE ENHANCED FOR 2016 WITH TRIO OF ENGINE CHOICES - NEW TURBOCHARGED ENGINE AND V6 AWD Three Engine Options: 241 hp Turbocharged 4-Cylinder, 255 hp V6 and 306 hp V6 Ultra-Stiff Platform for Exceptional Handling F SPORT Model with Electronic Suspension Damping and Rear-Wheel Steering Available Lexus Enform Service Connect Offers Peace of Mind October 02, 2015 -- The RC luxury sport coupe was introduced to Lexus' stable for the 2015 model year and it returns for 2016 model year with new engine variants. The new RC 200t and RC 300 AWD join the RC 350 for a more extensive luxury coupe line-up that offers drivers more horsepower options to fit their needs. In addition, the Lexus RC features several other changes for 2016. The RC 200t F SPORT and 350 RWD F SPORT now offer optional orange brake callipers and Limited Slip differential. Performance dampers are standard for RC 200t and available for RC 350 RWD F SPORT. Eminent White Pearl exterior paint replaces Starfire Pearl. Drivers can now opt in for additional peace of mind with Lexus Enform Service Connect. Lexus Enform Service Connect (one-year complimentary subscription) allows customers to remotely view information about certain aspects of their Lexus vehicle via the MyLexusandBeyond mobile application for iOS smartphone users or LexusDrivers.com.