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Lexus regrets not doing 3-row CUV before RC coupe [UPDATE]

UPDATE: The source clarifies that rather than planning new small cars and crossovers, Lexus intends to rely on the ones it already has in its lineup. The text below has been revised accordingly. Automakers try to give its dealers (and by extension, their customers) the vehicles they're asking for. In Lexus' case, that's come down to a sport coupe and a three-row crossover. The Japanese luxury automaker ended up prioritizing the former with the launch of the RC coupe, but in retrospect, it feels it should have gone with the seven-seater instead. This according to Toyota's North American chief Jim Lentz in speaking to Automotive News at its provisional headquarters in Plano, TX. "In hindsight, if I was making this decision 10 years ago, seeing what I see today, the three-row [crossover] probably would have been the better play to come out first," Lentz to AN. "Strategically that's a more important vehicle to have than necessarily a lower volume, higher priced image product." Crossovers and SUVs represent big business for Lexus, whose five-seat RX (pictured above) is its biggest seller. The more compact NX is off to a solid start as well, but the brand's only three-row offerings are truck-based sport-utes like the GX and LX. Even without the three-row crossover, however, Lexus has been performing admirably. Rising sales have it trailing only BMW and Mercedes in the US market for luxury automobiles. Adding a three-row crossover to target the likes of the Audi Q7 and Mercedes GL will evidently be the next top priority for Lexus, but it's not the only plan the luxury brand has for the near future. Lentz indicated that the company plans to rely on its lineup of near-luxury and entry-level luxury sedans and crossovers moving forward, but isn't interested in going after the Mercedes CLA and Audi A3. "Luxury cars cost a certain dollar amount for a reason," said Lentz. "I don't want to cheapen my cars just to offer a lease that's $20 a month less."

Lexus planning second flagship alongside LS sedan

Lexus is planning to launch another flagship to slot alongside the LS sedan, but we don't know if it will be a coupe or a crossover. The coupe has been the persistent rumor. Lexus showed the two-door LF-LC concept in 2012 and a production model could borrow its underpinnings from the LS sedan. It's tipped to wear the letters LC or to revive the SC nameplate. The previous SC launched in 1991 as a fixed-roof coupe and offered inline-six or V8 engines. It was replaced in 2001 with the SC430 that had a V8 and a folding hardtop. While the coupe idea may seem like the leading candidate, the company's ambiguity is leading to speculation that the new flagship could adopt a different body-style altogether. "We need a flagship," Lexus general manager Jeff Bracken told Reuters. "It doesn't have to be a sedan." "In addition to the LS, there could be another flagship in our lineup," Bracken said. "We'll define what it is in January." The comments suggest something will be revealed at the Detroit auto show and could open the door to a new flagship SUV or crossover. That position is currently held by the LX 570, which is closely based on the Toyota Land Cruiser. However, sales of the LX have been less than stellar. From the 14,000-plus units Lexus sold of the original LX 470 when it launched in the US back in 2000, annual sales have dropped to just over 4,000 the last few years. Mercedes regularly sells over 25,000 of its GL-Class crossovers each year in the US alone. Last year Audi sold 18,000 Q7s here despite its imminent replacement. Land Rover sold nearly 13,000 Range Rovers last year and another 18,000 Range Rover Sports. Meanwhile, Cadillac typically sells between 20,000 and 30,000 Escalades every year, down from the 50,000-60,000 it sold a decade ago. A facelift is due for the LX that ought to spike sales a little, but Lexus will need more than a refresh to catch up with those rivals. In the meantime, it reportedly plans to roll out a three-row variant of the new RX before its lifespan is over. "We don't want to wait for a next generation" to give the RX the added seating capacity many customers are demanding, said Bracken. Related Video:

2016 Lexus GS 200t First Drive

Last year, Lexus rolled out an ad for its GS that featured several luxury rivals swinging on pendulums, with a hypnotic voiceover that derides the BMW 5 Series' standard four-cylinder engine. The ad then asks viewers to, "Open your eyes to the six-cylinder, eight-speed Lexus GS." Oh, how times have changed. Consider the facelifted Lexus GS 200t and its four-cylinder turbocharged engine an admission that maybe the Germans are on to something. It's good to see Lexus getting with the times, but after a drive in Southern California, we find the first turbocharged GS comes up short in a lot of ways. This is the same engine Lexus uses in the NX, IS, and RC with 200t designations. The 2.0-liter four-cylinder uses a twin-scroll turbo, direct injection, and Toyota's most advanced continuously variable valve timing to produce 241 horsepower and 258 pound-feet of torque. That's 70 horsepower short of the GS 350's 3.5-liter V6. But torque is down only 22 fewer lb-ft, and the 200t's broad peak torque, from 1,650 to 4,400 rpm, promises ample usable power. The 200t offers little reward for the slower acceleration. As for that previously-mocked BMW 5 series, the Lexus has nearly identical output. But a 7.0-second 0-60 time is nearly a full second slower than the BMW's claim for the 528i, a car that weighs practically the same as the Lexus. Fuel economy is another head-scratcher. Lexus estimates the GS 200t F Sport returns just 20 miles per gallon in the city and 30 mpg on the highway, three and four mpg less than the 5er. This brand-new 2.0-liter turbo is hardly more efficient than the three-year-old GS 350. The V6 model nets 19 mpg city and 28 mpg on the highway, and is 1.3 seconds quicker to 60 mph. A smaller engine almost always means sacrificing performance for economy, but based on the figures the 200t offers little reward for the slower acceleration. At least the 200t is better from behind the wheel than on paper. We weren't that impressed by the low-end grunt of Lexus' 2.0-liter turbo when we drove it in the NX, but different gearing in the GS means snappier off-the-line behavior. Once the turbo catches up you're well into the heart of the torque curve, and the GS feels quicker than a seven-second jog to 60 mph. Mid-range punch is the engine's most endearing quality. Passing moves are easy and entertaining, even when you're already traveling at or above freeway speeds. Unfortunately, the engine gasps above 4,400 rpm.