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Growing demand could bring more body-on-frame off-roaders to the Lexus range

Car-based crossovers are outselling truck-derived SUVs by a wide margin, but Lexus still sees a strong demand for models that offer true off-road capability. It hinted that it could soon increase its presence in this segment. Toyota's luxury division entered 2021 with two body-on-frame SUVs in its range: the Land Cruiser-based LX (pictured) and the smaller, more affordable GX. Neither is a high-volume model, but both fared shockingly well in 2020. LX sales in the United States fell by 4.4% to 4,512 units, which is a great result in a year when double-digit declines were common, and GX sales increased by 9.9% to 28,519 units. Clearly, off-roaders are in demand. "What we have seen at Toyota is that there's so much of an appetite for [off-roading] that I see that [moving into] the Lexus brand as well. There is an appetite, a customer desire, a customer push to see all brands giving them more options. I think it would be silly for Lexus not to travel down that path," explained Jack Hollis, the head of automotive operations for Toyota's North American division, in an interview with Automotive News. He added that his team has identified a "white space" in the Lexus range that could be filled with an additional body-on-frame off-roader. He didn't reveal precisely what he has in mind, but there are a few possibilities we can rule out. We know Toyota is wrapping up the development of the next-generation Land Cruiser, even if the SUV might not be sold in America, and seeing a next-generation LX seems like a given, but we don't think that's what Hollis was referring to. Moving into the space above the LX with an even bigger truck is highly unlikely. Similarly, the idea of a Lexus-badged SUV aimed at the Jeep Wrangler and the Ford Bronco is neat but unrealistic. Ford's hotly-anticipated born-again off-roader has captured the attention of executives, however. "Holy cow! They sold out that thing, and I think there's a strong market out there for authentic off-road chops and credibility. We're seeing that with [the Toyota] 4Runner as well. I don't think it's any secret that [the 4Runner] is not all that new, but it continues to set records, and it continues to grow volume," pointed out Lexus brand head Andrew Gilleland in a separate interview with Automotive News. Could we see a Lexus-specific version of the 4Runner? We certainly wouldn't rule it out, especially because making an upmarket variant of the SUV would help Toyota leverage the benefits of economies of scale.

Luxury car brands scrambling to avoid a blue Christmas

DETROIT — When financial markets surge to new records, sales of luxury cars usually rise, too. Instead, October U.S. auto sales reports on Wednesday showed that a collapse in sales of luxury sedans is accelerating. Consumers have gradually shifted over to luxury sport utility vehicles from sedans in the past decade, but the trend — which has occurred in both the non-luxury and luxury sedan segments of the auto market — was particularly pronounced in October. Sales of Daimler AG's Mercedes-Benz S-Class, long a global benchmark for large, premium sedans, plunged 49 percent in October, and are down 24.8 percent for the year to date. General Motors' Cadillac brand said it sold just 779 of its CTS sedans in October. Demand for that car, designed to compete with German luxury sedans, is down nearly 33 percent for the year. "There's still a significant portion of the market that wants a car, but I'm sure there were people who preferred a horse to a car at one point." Cadillac's best-selling model this year is the XT5 compact SUV, which has more than doubled sales from a year ago. The shift within the luxury vehicle market away from sedans toward SUVs of all sizes is forcing some of the most prestigious brands to scramble to add SUV models to their lineups or boost SUV production to meet demand. "In the short term, there will be pressure to add (consumer) incentives, cut production or both," said Cox Automotive analyst Michelle Krebs. "And we just don't see an end in sight to this trend." The Dow Jones Industrial Average has been trading at all-time highs, usually a good sign for luxury sedans, but as major automakers reported new U.S. vehicle sales for October on Wednesday, sales for passenger cars continued their slide while luxury SUV and crossover sales rose again. According to Kelley Blue Book data, in 2007 luxury sedans made up 7.6 percent of U.S. new vehicle sales, while luxury SUVs made up 4.2 percent. Through September this year, luxury SUVs made up just over 7 percent of the market, compared with 4.9 percent for luxury sedans. In the short term, luxury brands could use holiday season sales promotions to clear slow-selling sedans off dealer lots, analysts said. Toyota's Lexus brand said on Wednesday it will launch its "December to Remember" year-end sales promotion for the 18th straight year.

Lexus confirms three-row RX coming by 2018

Now seems like the perfect time for Lexus to launch a three-row version of its RX crossover. Not only are CUVs flying off of dealer lots – as you probably already know, the RX is Lexus' best-selling model – there aren't all that many car-based luxury soft-roaders on the market for Lexus to compete with. Problem is, these things take time, and product planners don't always get the new-model cadence just right. Now, though, we at least have a tentative date for the extended-wheelbase 'ute's arrival. According to Automotive News, Lexus General Manager Jeff Bracken has confirmed that the brand is readying a three-row version of the RX with plans to have it in the clutches of salivating dealers by late 2017 or early 2018. Chances are, the new model will wear RX 350L badges in gas-powered guise and carry the RX 450hL moniker in hybrid form. As AN points out, these names were registered as trademarks earlier this month. That indicates we'll see both standard V6 and optional hybrid-powered versions of the three-row RX. Not only will the extended RX keep the same nomenclature, it'll also look pretty much the same as its five-seat siblings. According to Bracken, "We put so much energy into the styling you see now that we didn't want to compromise even with the third row." All we have to do now is wait, said Bracken. "They would just love to have it now. But I think they're quite relieved that they know it's coming." Related Video: