2013 Lexus Gs 350 4dr Sdn Rwd on 2040-cars

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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.

2018 Lexus LC 500 Prototype First Drive

Chief executives aren't normally as candid as Akio Toyoda was last week. At the launch of hot new Lexus LC 500 coupe at the Detroit Auto Show, the chief executive of Lexus and Toyota and grandson of the company's founder, said that he'd received letters telling him that his Lexus luxury brand cars were dull and boring and that he agreed. "I took them to heart," said this tiny and forceful boss, "and I'm ensuring that the word 'boring' and 'Lexus' will never occupy the same sentence ever again." But boring has been an ongoing problem for Lexus. And for the last year I've been involved in trying to help solve it. Let me explain. Akio has made his extraordinary "Lexus is Boring" speech before. That was five years ago on the windswept golf courses at the Pebble-Beach Concourse d'Elegance at the launch of the fourth-generation GS sedan. With its new-look spindle grille, basking-shark air intakes, and razor-edged curves, GS was the first of the new-look Lexus models, but Akio still wasn't happy. In 2011, after 11 consecutive years of premium market leadership in America, Lexus had lost it to the Germans. Mercedes-Benz, BMW, and Audi didn't just build better looking cars, but more interesting and more fun-to-drive cars. "We're not just making a coupe, we're creating a new generation of Lexus." Lexus' shtick of reliability, immaculate-quality, hybrid gas-efficiency, golf-bag trunk optimization, and specification-adjusted value didn't cut it anymore. Akio, a keen race driver and petrolhead enthusiast, knew his cars needed a dynamic shot in the arm and a smoldering love affair with right-brain desirability. In short, he wanted Lexus engineers to build a car to bring a smile to drivers' faces. A tall order, then. And one which Koji Sato, deputy chief engineer on the LC had to consider carefully. As he says: "Akio's Pebble Beach speech was the starting point; we're not just making a coupe, we're creating a new generation of Lexus." With such a brief, and Akio's legendary peppery opinions in mind, Sato came up with a radical idea. Reckoning that sometime in-house teams can look so much in-house that they become blinkered, he decided he needed to open things up and recruit a team of outsiders. So, for the last year I, along with a small team of hand-picked journalists, race drivers, and keen-driving dealers, have been part of Sato-san's 'irregular army'. Why me? It's a good question.

J.D. Power customer survey of dealers counts Cadillac, Buick as big winners

Cadillac and Buick have taken the trophies in J.D. Power's latest Customer Service Index Study examining satisfaction with dealer service. Surveying more than 90,000 owners and lessees of 2009-2013 model-year cars, the study found that those with pre-paid maintenance packages were ten percent more likely to buy their next car from the same brand.
Dealer satisfaction scores have improved overall, Cadillac nabbed the luxury segment ahead of Audi and Lexus, taking the crown that Lexus held last year. Buick keeps the mass-market dealer satisfaction win in the family, finishing ahead of Volkswagen and last year's winner GMC. The study also found that service department use of tablets increased customer satisfaction, as did "best practices" like "providing helpful advice." Who knew?
You can find details on those and more findings in the press release below.