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Toyota investing $200M in Southern manufacturing

Over the past two years, Toyota has invested more than $2 billion at its North American production facilities, and it apparently doesn't plan on stopping there. To keep up with recent strong sales, Toyota is investing an additional $200 million at its engine plants in the Southern US to increase production capacity of its V6 engines.
The bulk of this money ($150 million) will go to expand Toyota's engine plant in Huntsville, AL, which is currently responsible for supplying engines - four-cylinder, V6 and V8 - to eight of Toyota's 12 domestically produced vehicles. That includes the best-selling Toyota Camry (shown above).
Toyota didn't say exactly what improvements are being made to the plant, but this follows last year's $80 million investment in the plant that is set to be completed by next year raising the engine capacity to 750,000 annual units including 362,000 V6s. The remaining $50 million will go to the casting plants of Toyota-owned Bodine Aluminum in Missouri and Tennessee, which supply engine blocks and cylinder heads to the Huntsville engine plant as well as others in Kentucky and West Virginia. Scroll down below for the official press release.

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.

Japanese dealer petitioning Lexus for luxury van [w/poll]

Used to be that if you wanted a luxury automobile - especially one to be chauffeured around in - your choices were basically limited to a sedan. It could be bigger or smaller, more or less expensive, depending on your needs and budget, but it was always going to have four doors and a trunk. But these days the rich and famous are looking elsewhere for their commodious forms of pampering transportation. There are, of course, the crossovers and SUVs, which only seem to be getting bigger and more expensive thanks to the likes of the Mercedes-Benz G-Class, Range Rover L and upcoming Bentley sport-ute. But luxury vans are becoming the new big thing.
That's the point that one dealer in Japan is trying to make to Toyota. The dealership owner himself reasons that if he's going out on the town, he's likely to take his chauffeured Lexus LS. But if he's taking a few friends along, even the biggest sedan isn't going to cut it. So he takes a Toyota Alphard (pictured above, also known as the Vellfire), a JDM van that's even bigger than a Voxy/Noah or Sienna but hardly a high-end affair. That's why he's asking Lexus to make a luxury van.
The idea may seem a little far-fetched, but isn't without precedent. It didn't take much for Lexus to transform the Land Cruiser into the LX and thus create its first luxury SUV. And as Mercedes has shown with pimped-out versions of the Sprinter and now with the debut of the new V-Class in Geneva, there's clearly a market for it... in some countries, anyway. The only question in our minds is how long it's going to take other luxury automakers to catch on, because let's face it: the Chrysler Town & Country ain't gonna cut it for those used to be driven around in a Maybach.