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Growing demand could bring more body-on-frame off-roaders to the Lexus range

Car-based crossovers are outselling truck-derived SUVs by a wide margin, but Lexus still sees a strong demand for models that offer true off-road capability. It hinted that it could soon increase its presence in this segment. Toyota's luxury division entered 2021 with two body-on-frame SUVs in its range: the Land Cruiser-based LX (pictured) and the smaller, more affordable GX. Neither is a high-volume model, but both fared shockingly well in 2020. LX sales in the United States fell by 4.4% to 4,512 units, which is a great result in a year when double-digit declines were common, and GX sales increased by 9.9% to 28,519 units. Clearly, off-roaders are in demand. "What we have seen at Toyota is that there's so much of an appetite for [off-roading] that I see that [moving into] the Lexus brand as well. There is an appetite, a customer desire, a customer push to see all brands giving them more options. I think it would be silly for Lexus not to travel down that path," explained Jack Hollis, the head of automotive operations for Toyota's North American division, in an interview with Automotive News. He added that his team has identified a "white space" in the Lexus range that could be filled with an additional body-on-frame off-roader. He didn't reveal precisely what he has in mind, but there are a few possibilities we can rule out. We know Toyota is wrapping up the development of the next-generation Land Cruiser, even if the SUV might not be sold in America, and seeing a next-generation LX seems like a given, but we don't think that's what Hollis was referring to. Moving into the space above the LX with an even bigger truck is highly unlikely. Similarly, the idea of a Lexus-badged SUV aimed at the Jeep Wrangler and the Ford Bronco is neat but unrealistic. Ford's hotly-anticipated born-again off-roader has captured the attention of executives, however. "Holy cow! They sold out that thing, and I think there's a strong market out there for authentic off-road chops and credibility. We're seeing that with [the Toyota] 4Runner as well. I don't think it's any secret that [the 4Runner] is not all that new, but it continues to set records, and it continues to grow volume," pointed out Lexus brand head Andrew Gilleland in a separate interview with Automotive News. Could we see a Lexus-specific version of the 4Runner? We certainly wouldn't rule it out, especially because making an upmarket variant of the SUV would help Toyota leverage the benefits of economies of scale.

Toyota profits up 23% on high US sales, despite mounting legal costs

Toyota earned $9.3 billion in net income in the financial year that ends next month. The number beats earlier forecasts and marks a five-year high for the automaker, with both operating income and revenue up by 9.5 percent and 2.5 percent, respectively. Toyota saw quarterly profit enjoy a year-on-year jump of 23.4 percent, with the manufacturer earning more than $1 billion between October and December 2012. The good news comes in spite of the fact that the Japanese automaker actually endured an operating loss in North America, due in part to legal fees.
Toyota is set to pay more than $1 billion to owners who claim their vehicles decreased in value as a result of the company's recent spate of recalls. Even so, all three of the automaker's brands enjoyed a 13.5 percent sales increase in the US in the last quarter, beating the industry average. Toyota faltered in Europe, however, where it earned $99 million in operating profit last year, compared to $111 million in 2011. You can take a closer look at the company's full press release below for more information.

Rebooted Apple program gets permit to test autonomous vehicles in California

For a while, Apple has been pursuing autonomous vehicle technology, but has more or less tried to keep the specifics of those ambitions under wraps. We did learn last fall that the company was killing off plans to build its own car, and clues about its program to develop a self-driving system popped up since. Today, though, we have more concrete information, as the California DMV has issued Apple a permit to test self-driving cars in the state, as TechCrunch reports. In a document released by the DMV, the tech company joins a number of others in California with approval to test autonomous vehicles. Apple will test its systems on three cars, each a 2015 Lexus RX540h, with six approved drivers. Presumably, those cars will be on the road quite a bit, as gathering lots of data is crucial to developing a working system. Per California rules, the company will have to provide accident reports, as well as a log of every instance that a human driver has to take over driving duties from the autonomous system in what the DMV calls a "disengagement report." Those reports will be made public, so we'll be able to glean a little more information about Apple's progress once they're available. Related Video: News Source: TechCrunchImage Credit: GABRIELLE LURIE/AFP/Getty Images Green Lexus Technology Emerging Technologies Autonomous Vehicles California