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Lexus in no hurry to be a big player in China

For a while now, China's spiraling wealth, population and development has had the world's luxury automakers in an expansionist fervor, with many executives exhibiting the sort of gleefully maniacal behavior historically reserved for gold-rush prospectors. Yet Toyota, of all companies, is exercising a surprising amount of caution in the Asian nation.
As The Wall Street Journal notes, Toyota's premium brand, Lexus, sold all of 64,000 vehicles in China last year, while BMW cleared its books of 326,000. In fact, it didn't even bother entering the market until 2005, while rival Audi built its first car in the market a decade and a half earlier. Even now, Lexus doesn't build any vehicles in China, and with the country's notoriously high tariffs on imports, that's a major disadvantage. Yet the business daily quotes Lexus executive vice president Mark Templin as saying that the brand is nowhere near ready to start building cars in the market. "We're not having those discussions about when we're going to go to China... We have a lot of work to do before we get to that point."
Part of that work includes establishing a more expansive dealer network - Lexus only had 99 stores as of 2012, while rival Mercedes-Benz had over two-and-a-half times as many, and it's still expanding. Adding a lot of dealers without having a goodly number of competitively priced offerings for them to sell may seem like an odd strategy, but Templin tells the WSJ that the goal is to "cultivate our image for quality and customer service and let the customers that we have go tell that story for us."

Lexus LF-LC approved for production

On the sidelines of a press drive for the 2014 Lexus IS, the company's vice president of marketing in the US told Ward's Auto that the honchos in Japan have approved the Lexus LF-LC concept for production. He wouldn't offer any other details on how the luxury coupe might be transformed into a vehicle for the buying masses, and that has led to a bag full of speculation.
The show car was hybrid-powered and rear-wheel drive, a beautifully executed stab by Toyota designers in Newport Beach at redefining Lexus, but even with the concept, the point was to keep it "within reach for premium buyers." The report says the odds are on limited production and higher pricing than Lexus' "mainstream products," and other sites have speculated on what kind of powertrain it might end up in showrooms with.
GT Channel posits that the LF-LC will be the inspiration for a coupe in the Lexus LS price bracket with a choice of either the 4.2-liter V8 or the hybrid powertrain from the LS 600h, further speculating it will be called LC 550 and cost more than $100,000. It then says that there would be another coupe created beneath that one to replace the SC 430. Lexus Enthusiast, however, calls those "warmed-over rumors" and says that the marque probably won't deviate from its engine-capacity-naming scheme - labeling a car with a 4.2-liter V8 an LC 550. Nor does it think Lexus will use the letters LC after the company has trademarked "RC" in the US and Australia.

This is what a Lexus RC-based 'four-door coupe' might look like

It feels like there is a secret law in Germany mandating that every domestic automaker there must offer at least one model with a four-door coupe bodystyle like the BMW Gran Coupes, Mercedes-Benz CLS and Audi A7. Several of the German brands even have the swoopy sedans in multiple sizes. So far, Lexus has stayed out of that fray, but maybe not for long, if a recently spotted test car makes it to market.
The brand is known to be testing a highly styled four-door coupe, roughly the size of the GS, under heavy camouflage. Little is known about the new model at the moment, but its existence makes sense. If it really wants to take the on Germans, Lexus is going to have to fight them toe-to-toe with competing models - especially with ones understood to have high margins.
Pictured above is a rendering from artist Theophilus Chin imagining a slightly smaller take on the genre based on the RC coupe, which he calls the RC GT. His design leaves the original shape almost untouched, but shortens the front doors to allow room for a rear doors under the arching roof. His GT would be aimed more against the BMW 4 Series Gran Coupe and rumored Mercedes-Benz C-Class four-door coupe, rather than the larger models Lexus actually appears to be targeting with its vehicle under development. His concept certainly nails the look, though, and while it might not have a basis in reality, we thought that it's well-resolved enough that you'd want to take a look, if only as a "what could've been" flight of fancy.