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China fines Toyota $12.5 million over Lexus price-fixing

BEIJING — China's market regulator on Friday has fined Japanese carmaker Toyota Motor 87.6 million yuan ($12.5 million) for price-fixing on its premium Lexus cars in eastern Jiangsu province, according to a document on its website. The decision comes as China steps up regulation over auto sales in the world's biggest vehicle market, where more than 28 million cars were sold last year. The anti-monopoly bureau of State Administration for Market Regulation said that between 2015 and 2018, the Japanese carmaker set a minimum sales and resale price for its cars in coastal Jiangsu province, which deprived dealers of pricing autonomy and harmed customers' rights. Lexus also fixed sales strategies in the region over the period, including offering customers discounts while asking them to purchase accessories at fixed prices, a sales tactic usual among individual auto dealers in China but frowned upon for carmakers. A spokesman at Toyota, Lexus' parent firm, told Reuters the firm acknowledged the penalty and respects the decision. He did not comment further. China's auto sales are declining, but Lexus' sales keep growing. It sold 180,200 vehicles in the first 11 months this year, a 21% jump from a year earlier. In June, China's market regulator imposed an 162.8 million yuan fine on Ford Motor Co's joint venture with Changan Automobile Group for violating anti-monopoly law. ($1 = 6.9927 Chinese yuan renminbi) Reporting by Yilei Sun and Norihiko Shirouzu. Related Video:

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.

Lexus exec says he still fields complaints about the spindle grille

When Lexus debuted its spindle grille on the GS sedan and trademarked the design back in 2012, it was a sure sign the look was here to stay. It started making its way through the lineup, and now five model years later, it's on all Lexus vehicles. The one thing everyone can all agree on is, it's bold. And Lexus has doubled down on the design with the LF-1 Limitless Concept on display at the Detroit Auto Show. Some people surely think nothing of the grille. Others have equated it to a cartoon character, a beard trimmer, or a baleen whale scooping up krill. In one harsh, perhaps apocryphal criticism, a design professor is said to have likened the spindle to the mouth of the titular hunter-alien in the "Predator" movies. In a much more admiring spacefaring comparison, our Antti Kautonen said the grille of the LF-1 Limited Concept mimics a "Star Wars" ship's shift into hyperspace. That's a fitting analogy for the stunning and futuristic LF-1, which might be the single most dramatically styled vehicle at the North American International Auto Show. A couple of years ago, Toyota chief designer — and head of Lexus — Tokuo Fukuichi defended the spindle in a Reuters interview, saying "sexy" was a goal of the design, and dismissing complaints by saying, "Even polarizing designs, you get used to them after a while." That defense was "a while" — three years — after the new look caused an uproar at a 2012 Toyota stockholders' meeting, where some shareholders complained. Now it has been a while longer, and a Lexus executive says the spindle grille has continued to divide Lexus customers. Jeff Bracken, Lexus group vice president and general manager, told Carbuzz on the sidelines of the Detroit show last week that longtime repeat customers still can't get their heads around whatever it is the car seems to be getting its mouth around. "I'll be very transparent. It's our signature grille. Some of our models have a more expressive signature grille than others. The folks that look at it as somewhat polarizing would be, for the most part, the folks that have been with us since the beginning. In fact I'll take phone calls from some of these owners and will literally spend 45 minutes to an hour on the phone with me just expressing how disappointed they are," Bracken said. Bracken has actually been saying almost the exact same things about the grille for years — both to upset customers and to automotive journalists — for example, to Forbes in 2014.