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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 ES350 confirmed for Kentucky production starting in 2015

Following Thursday's report, Toyota has confirmed that production of the Lexus ES will move to its Georgetown, KY assembly plant starting in 2015. To accommodate the extra 50,000 units of capacity that the ES represents, Toyota will be investing $360 million in the plant and hiring 750 new workers.
In the previous report, sources stated that the state of Kentucky had offered Toyota as much as $146.5 million to move ES production to the Georgetown facility.
The press release, posted below, specifies that only the ES350 will be built in Kentucky, so it's likely that the ES300h hybrid will continue to be built in Japan - where all ES models have been built since the car was introduced in 1989. Toyota's Georgetown plant, which currently builds the Toyota Camry, will also be getting an expansion to its engine plant to produce more four-cylinder engines at a cost of $30 million and will create an additional 80 jobs.

The Lexus LC 500h has a four-speed auto and that's a good thing

Lexus is sharing some powertrain details on the LC 500h ahead of the big hybrid coupe's debut in Geneva. Its new gas-electric setup strays from Toyota's tried-and-true system found in everything from the Prius to the Lexus GS. It's called the Multi Stage Hybrid System that's designed for performance vehicles, and it has an antiquated-sounding piece of equipment buried deep inside that's supposed to make it more enjoyable to drive. The basics: In the LC 500h, its first application, the Multi Stage Hybrid System will consist of a 3.5-liter V6, a hybrid transmission, and a lithium-ion battery pack. The hybrid transmission has an electric motor for motivation (and we're guessing a second for charging) and a four-speed automatic mounted to its rear, which either means inside or aft and in series. Why add ancient tech to a new hybrid system? Lexus says it preserves the connection between throttle input and engine speed that gets lost in a CVT. And while four seems like an insignificant sum in the face of nine- and 10-speed autos, remember that it is an infinite increase in gear count compared to CVT-packing hybrids. Toyota has been using versions of the Hybrid Synergy Drive system since the first Prius debuted in 1997, and the same system is sold under the Lexus Hybrid Drive banner in most of the luxury brand's offerings. These systems use what Toyota calls an e-CVT – two electric motors paired with a planetary gearset. This lets the engine and electric motors share the job of propelling the car – one motor handles charging of the battery and the other is primarily used to drive the wheels but can also recoup energy through regen. Like a conventional CVT, the planetary gearset arrangement allows the gas engine to run at its optimal engine speed when called upon for motivation and/or charging. But that doesn't make for the most exciting or familiar driving experience, as it affects both power delivery and the sound of the power being delivered. This is where the four-speed auto comes in. Based on the limited details Lexus has shared, our hunch is that the hybrid transmission will meld some form of the existing Lexus Hybrid Drive system with two more planetary gearsets, or the basic guts of a four-speed auto. This will provide the four fixed ratios and the feeling of actual shifting gears – because there will be actual gears shifting.