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Lexus might introduce an all-electric successor to the CT hatchback

Despite sales of the Lexus CT hybrid hatchback ending last year in the U.S., Lexus isn't planning to abandon the hatchback segment in favor of the new compact crossover, the UX. The CT remains on sale in some countries, and Lexus's European boss is adamant the brand has to keep offering hatchbacks. Talking to the British AutoExpress, Lexus's Pascal Ruch says the CT has an important purpose, which is introducing new customers to the Lexus brand. Ruch told AutoExpress that the CT has a high "conquest ratio" of 70-75 percent, and that a CT customer is different from the envisioned UX customer. "I believe that all the segments we are now in, it's important to stay there," added Ruch. AutoExpress says the CT could be replaced in 2020 with a model that would be offered both as a hybrid and as all-electric, built on Toyota's new TNGA global platform. The hybrid is likely to be the 177-horsepower 2.0-liter unit seen in the new European Auris, which corresponds to the new U.S. market Corolla Hatchback. The CT's successor could be sold as both a conventional hatchback and a more crossover-like version, much like the new Ford Focus and its Active trim level; Ruch says Lexus is thinking through a new approach for the CT. The CT was introduced way back in 2011, selling some 15,000-17,000 examples per year in the U.S. until its first really weak year, 2016, which saw less than 9,000 cars sold. The following year, which proved to be its last model year in the United States, sales dropped under 4,700. In Europe, it's different for Lexus: The brand overall sells only some 45,000 cars per year, and the CT's steady sales of more than 8,000 cars per year are quite important for it. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

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:

Satisfaction with dealer service rises, Lexus and GMC are tops

During the economic downturn, many car dealerships counteracted their slowing income by focusing on things that would set them apart from competition - things like the quality of customer service they provide. When the economy picked up and more sales and service followed, many also first invested those funds back into the business, improving their dealership facilities and service centers.
It looks like those investments are paying off, as J.D. Power and Associates' latest Customer Service Index Study shows that overall consumer satisfaction with dealer service has increased to 797 (on a 1,000-point scale), up from 787 in 2012 and 29 points higher than the score in 2011. The study also finds that people are more satisfied with the service they get at dealerships compared to independent service providers, despite the much higher average out-of-pocket cost per visit ($118 vs. $44).
Note, however, that this study only looks at how people are treated by a dealer's service department during the first three years of ownership (the survey is based on responses from 91,000 owners and lessees of 2008 to 2012 model year vehicles), so we're talking about the experience had when bringing a car in for repair or maintenance work, most likely under warranty. In fact, maintenance work is increasing in share and accounted for 77 percent of service visits (up from 72 percent in 2012 and 63 percent in 2011). This helps explain why customer satisfaction has also risen, since a properly maintained car is one that's less likely to require a dealer visit for an unexpected repair.