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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:

Lexus compact crossover based on the UX could debut in Geneva

We have but one line to go on, from Car magazine's section on Lexus in the rundown of Geneva Motor Show reveals: "Baby SUV not yet confirmed, but word is that a Lexus small crossover based on UX concept is due." Actually, there's a tad more than hearsay to add to that line: Lexus International EVP Yoshihiro Sawa said one year ago that the carmaker already approved a production version of the UX, and that it is "not so far away." The trail goes cold there, though, when trying to divine what a civilian UX would look like. The production model should borrow its platform and some organs from the Toyota C-HR, which rides on the TNGA bones also shared with the Prius. Yet the UX concept, shown at the 2016 Paris Motor Show, warped so many dimensions it belongs in the coming Avatar sequels or a " Time Bandit" reboot. Chapeau to the designers for compressing so much action in so little space; at 173.2 inches long, 74.8 inches wide, and 59.8 inches tall, on a 103.9-inch wheelbase, the UX concept was a smidge larger than an Audi Q3, a smidge smaller than the Mercedes GLA. A retail crossover based on the concept would need to give up 93 percent of the UX's character, but that remaining 7 percent would still be powerful — especially when you add a big ol' spindle grille. We expect the Lexus baby CUV to come to America, but that's not confirmed. Lexus did trademark the names UX 200, UX 250, and UX 250h with U.S. Patent and Trademark Office in 2016, and Jeff Bracken, Lexus' North America group VP and GM, said, "Our dealers are all over us to produce that concept vehicle." And why not? Crossovers constitute the majority of Lexus' U.S. sales, and Lexus seriously seeks the younger buyers who can't get enough compact crossover bait. And the production UX would provide a new entry-level vehicle to challenge entrants in the GLA and BMW X1 class, where the Germans and other carmakers are minting money. Lexus has pledged not to sell a vehicle in the U.S. for under $30,000, but it's got room to play with between that floor and the $35,985 Lexus NX. Related Video:

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.