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Lexus LS mid-cycle refresh to restore V8-powered LS 600h hybrid?

When Lexus launched the fifth-generation LS at the end of 2017, the Japanese luxury maker predicted its once-brand-defining sedan would sell 12,000 units per year in the U.S., a threshold the model hadn't reached since 2010. The LS managed 9,301 transactions here in 2018, its first full year on sale, falling back to 5,528 units in 2019. Through the first three coronavirus-affected months of this year, Lexus dealers have sold 801 LS sedans, compared to 1,404 units in Q1 2019. There's a mid-cycle refresh supposedly due for release in the fall of 2021, and the June issue of Japanese magazine Mag-X (translated), via Lexus Enthusiast, claims we're due for a couple of big surprises that could jolt the sales figures. The first shock is that Lexus is supposedly bringing back the LS 600h moniker for an LS with a V8 hybrid powertrain.  Lexus debuted the LS 600h L in 2007 for the 2008 model year, retiring the hybrid trim in 2016. Its heart was a 5.0-liter naturally aspirated V8, and when combined with an electric motor, combined output came to 439 horsepower and 385 pound-feet of torque. The fifth generation introduced the LS 500h that switched to a naturally aspirated 3.5-liter V6, producing a combined 354 hp and 369 lb-ft., taking second place in output to the twin-turbo V6 in the non-hybrid LS 500 with 416 hp and 442 lb-ft. If Lexus were to double back to a V8 after experimenting with a V6 hybrid for four years, some question which V8 would get the nod. The old V8, codenamed 2UR-FSE and still in use in the Lexus LC as the 2UR-GSE, dates back 14 years and is scheduled to retire in two years when the LC-F introduces Lexus' new twin-turbo V8. According to leaked dealer information, that's the same year Toyota and Lexus will stop offering V8 engines in any model with an MSRP under $90,000. Toyota has shied away from turbocharged hybrids, but the next-generation Tundra could change that if rumors of the 3.5-liter twin-turbo V6 i-Force Max engine come true. A twin-turbo V8 LS hybrid would rocket the model back to the top of the range in performance and price, and we could see it breaking the "F" seal on the LS lineup, since it would run counter to everything the German competitors are doing with their standard flagship sedans. Or Lexus could remove the turbos for a better compromise of potency and frugality.

Toyota projecting record profits, thanks in part to weak yen

Toyota retained its global sales crown in 2014 by selling 10.23 million cars in the calendar year. As the positive number might suggest, the Japanese automaker is doing extremely well financially, too. Although, some tougher times might be on the horizon. Toyota recently released its financial figures for the three fiscal quarters running from April 1 through the end of December 2014. Net profit jumped an impressive 13.2 percent to 1.727 trillion yen ($14.7 billion) for that period. It could be the Japanese automaker's most profitable time ever when the fiscal year ends in March, if things keep going this way, according to The New York Times. Toyota's own profit forecast for the 12-month period is also up by 130 billion yen ($1.1 billion) to 2.13 trillion yen ($18.1 billion). One key to the company's success is the low value of the Japanese yen, because it allows Toyota to make more money on each vehicle the company sells abroad. The currency is now worth relatively less than any time since the early '70s, according to The New York Times. Despite the rosy financial numbers, actual sales have started to fall, albeit a very slight amount. Through the three fiscal quarters, the company sold 6.73 million cars, a drop of just 45,365 vehicles. Toyota also reduced its forecast for the fiscal year to 9 million units, rather than the original estimate of 9.05 million. According to The New York Times, the shrinking Japanese auto market and difficulty in China might mean losing the global sales lead next year. For the US, sales jumped 145,411 units from April through December to a total 2.1 million vehicles. Operating income reached $4.27 billion, nearly 50 percent more than last year, according to The New York Times. Toyota Motor Corporation (TMC) Announces April – December 2014 Financial Results February 04, 2015 Toyota's global net income jumped 13.2 percent during the nine-month period (April 1– December 31, 2014) of the 2015 fiscal year. Global Financial Highlights: Global sales decreased by 45,365 vehicles to 6.73 million, with strong sales in North America and gains in Europe, offsetting decreases in Japan and other regions.

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.