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Toyota might stop importing certain models if tariffs imposed

In case you hadn't heard, the entire automotive industry, both domestic and foreign, is very much against the automotive tariffs proposed by the Trump administration. And while the industry is lobbying hard against such tariffs, companies are also having to consider what to do in the event they are passed. CEO of Toyota's North American operations, Jim Lentz, told Bloomberg that the company will certainly be reconsidering its strategy in the event of tariffs between 10 and 25 percent the cost of the car. He told the news outlet that, depending on how high the tariffs are, Toyota might just increase the price of some models, or stop importing them altogether. Toyota does build a large number of its cars here in the United States. The Toyota Camry, Avalon, Tundra, Highlander, Sequoia, Sienna models are all built here, as well as some Tacomas, Corolla sedans, and Lexus ES sedans. Many of those vehicles are big sellers for Toyota, too, so that's good for the company. But many other Toyotas are built outside the country. The Toyota RAV4, Prius range, C-HR, Corolla hatchback, Land Cruiser, 86, Yaris, Yaris sedan, Mirai, 4Runner, and the entire Lexus line are built in other countries. Some of these imports we're sure are safe no matter how high the tariffs might be. The RAV4 is the company's biggest seller, and the Prius sells well, too. Even if the Prius wasn't selling so well, the company would probably still sell it simply because it's an image builder. Somewhat related, we imagine Toyota would continue offering a handful of Mirais. The 4Runner, C-HR and Corolla hatchback would probably be safe, too. If these models stick around after potential tariffs are imposed, expect their prices to increase. But in the Toyota line, anything that's not selling well and has tight margins is probably doomed. Chief among them are the French-built Yaris hatchback and the Mexican-built Yaris iA sedan. Both cars have terrible sales, and being low-end cheap cars, they'll only sell worse with higher prices, and Toyota will lose money if it has to eat the tariff. The 86 is a similar situation in which it's a niche vehicle that has had weak sales and is being sold at a relatively low price. The Land Cruiser could go either way. It sells in small numbers, but it's already extremely expensive and continues to sell. Buyers might not be put off by spending some more.

Lexus gets new boss, and he's a designer

A reshuffle in the uppermost ranks of Lexus could see the Japanese luxury brand further energize its recent focus on design. Tokuo Fukuichi, Toyota's global design boss, is the new head of Lexus International.
Fukuichi will retain his role as the overall head of design for Toyota, Lexus and Scion, and will assume his new position at the head of Lexus and on its board on April 1 (no fooling). This is going to be an interesting move for fans of design to watch, as Fukuichi has repeatedly been mentioned as a designer that enjoys pushing the edge of the envelope and experimenting. He is, after all, the man responsible for designing the most awesomely odd minivan of the 1990s, the mid-engined, rear-drive Toyota Previa, and more recently, he signed off on the controversial Lexus LF-NX concept, which is said to presage a new production small crossover.
"Regarding changes in design, no one has 100 percent confidence," Fukuichi told Forbes back in January 2013. "No one can really say with pure certainty that, 'In two years, this will sell well.'" As Akio Toyoda continues to demand more assertive, edgier designs, it's that point of view that should make Fukuichi a valuable addition to Lexus, as it continues to challenge the competition from Germany.

Lexus has big expectations for small NX crossover

One has to wonder why it took so long for Lexus to enter the hotly contested compact premium crossover market. The brand itself projects some 36,000 sales for its brand-new NX, which is set to go on sale in the US in November. Add that potential to the 100,000-plus RX crossovers it sells annually in the States and Lexus looks poised to put some hurt on German rivals like Audi, BMW and Mercedes.
The vast majority of Lexus NX models imported to the States will be powered by a new 2.0-liter turbocharged four-cylinder engine that pumps 235 horsepower and 258 pound-feet of torque to either the front or all four wheels. Just 10 percent or so of NX models will get the 194-horsepower hybrid powertrain wrapped in NX 300h trim. Though not yet rated by the EPA, Lexus projects mileage ratings of 22 city, 28 highway and 24 combined for the turbo and 35/31/33 for front-wheel-drive hybrids (expect a one-mpg combined hit for AWD models with either engine).
In terms of sizing, the Lexus NX is dimensionally very similar to the Audi Q5, which starts at $37,300. Lexus hasn't yet released pricing information for its NX, but promises to be in the same range as its competitors. We note with interest that the larger Lexus RX starts at $40,795 - a little over $3,000 more than the Audi its NX will compete against - and wonder out loud if the Japanese automaker can undercut its German competitors in pricing with the NX. Expect official pricing info from Lexus closer to its on-sale date later this year.