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Lexus eschews production in China over quality concerns

One of the more popular trends in the auto industry is setting up production operations in China. Mainstream manufacturers like Ford, General Motors and Volkswagen have done it, and even luxury marques like Audi, BMW and Mercedes-Benz have or will soon have manufacturing ops in the People's Republic.
One company that isn't building cars in China, though, is Lexus. The Toyota-owned luxury brand still manufactures all of its vehicles in Japan (aside from a few RXs, which are built at a Toyota factory in Canada). According to Tokuo Fukuichi, Lexus just isn't ready to build cars there yet.
"The German Three have a brand image that they have cultivated over the past century in their long history, but Lexus is not in people's minds like that yet," Fukuichi-san told Reuters UK.

Lexus LS spied wearing googly-eyed mask [UPDATE]

UPDATE: Judging by this mule's dash-to-axle ratio, we think it's probably an LS sedan, not an ES as previously identified. The text below has been updated. Wow. Take a good look at those headlights! As you can see from the images in the gallery above, Lexus is hard at work on the next generation of its luxurious LS sedan. The massive appendages affixed to the front of this mule make us wonder what's going on behind those fake headlights – we'd expect some fancy LED units on the production model. Ditto for the rear, where those equally tacked-on taillights will be replaced with a fancier set with upward-sweeping light bars. Getting past the crazy eyeballs, it seems that Lexus will continue refining its current styling language with the next LS. There's sure to be a pinched Spindle grille, and a long wheelbase ought to offer plenty of space for four adult-size occupants. Whereas the IS and larger GS carry the brand's sportier aspirations, going up against the likes of BMW and Mercedes-Benz, the LS will continue to be aimed at a more relaxed luxury buyer. Interestingly, our spy shooters were quick to point out that Lexus brought along 5 Series and 7 Series sedans to compare with its next LS. In any case, we wouldn't expect any significant changes to excite the enthusiast crowd. Related Video:

Lexus CT 200h could be replaced by sub-compact hybrid CUV

The Lexus CT 200h is an interesting vehicle that never really caught on. It's a sporty Prius in sleeker hatchback clothing and was aimed at the Audi A3 when it hit the market in 2011. Since then, though, the CT has averaged a meager 16,000 sales per year. For that reason, the hybrid hatch won't be redesigned at the end of its life cycle. And according to Lexus' European brand boss, Alain Uyttenhoven, it could be replaced by a crossover. While you may lament yet another CUV hitting the market, Lexus needs a small car that sells in big numbers. Uyttenhoven told Autocar the brand aims to move 100,000 units per year in Europe to "give us visibility in the market." For 2016, European sales are on pace to hit just 70,000 units, with 10,000 of those coming from the CT 200h. He sees an opportunity for the right little Lexus based on the recent nature of the European luxury market. View 29 Photos According to Uyttenhoven, "a full 50 percent of the European luxury car market exists below the [$44,600] mark," and the only model Lexus has at that point is the CT. Put another way, the company has a remarkably slow seller as its sole representative for half of an entire continent's luxury market. Enter the crossover. Replacing the CT with a crossover makes a great deal of sense. The body style is getting more and more popular by the day, especially in the sub-compact and compact markets. Adding a smaller model – below the current NX crossover but larger than the LF-SA concept shown in Geneva – would allow Lexus to challenge the Mercedes-Benz GLA, the BMW X1, and the Audi Q3. We're betting the small crossover would use the Toyota C-HR as its basis and add a Lexus-correct heavily creased skin. Hybrid power is a given for the European market, where almost all Lexuses sold are gas-electric, but a conventional gas variant could join it in the US. That would give Lexus three hybrid CUVs in three popular sizes, alongside the NX and RX. With a forthcoming RX-based three-row on the horizon, the brand would have a full lineup of crossovers ready to take over the world. We'll miss the quirky CT when it goes, but it's hard to stop volume-driven progress. Related Video: