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Lexus spotted testing LF-LC coupe for production

Lexus has been preparing a production version of the LF-LC concept for some time now. The coupe would fill at least part of the void left by the culmination of the LFA's production run, albeit at a much lower market position. And judging by these latest spy shots, it looks like it's finally getting down to it. Spotted undergoing testing in Germany around the neighborhood of the Nurburgring, this camouflaged prototype provides us with our first glimpse at what the production LC will look like. It's still hard to tell with all those swirls encircling its bodywork, but the production version looks poised to adopt a form derived from the concept first seen at the Detroit Auto Show way back in 2012. Just don't expect the details to be quite as extreme as those on the show car. It may also be too early to determine what's under the hood, but the signs point towards implementation of the 5.0-liter V8 from the RC-F. A twin-turbo version of the same engine in the form of an LC-F could follow with even more power, while a hybrid V6 is also said to be in the cards. If you're having trouble imaging what it would go up against in the marketplace, though, our spy photographers on the ground inform us that Lexus has been benchmarking this prototype against a BMW 6 Series, Porsche 911, and Maserati GranTurismo. That'd put it in good company, and we're looking forward to seeing how it turns out. Related Video:

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.

Junkyard Gem: 1990 Lexus LS 400

Imagine you're an American Mercedes-Benz salesman during the winter of 1989-1990, looking over your inventory of majestic W126-chassis 560 SELs… and then you glance across the street at that brand-new Lexus dealership and flinch at the sight of your rivals gloating over a lot full of futuristic-looking big luxury sedans priced at less than half the cost of your top-of-the-pyramid S-Class. This was how it looked when mighty Toyota, riding high just before the popping of the Japanese asset price bubble, instantly muscled its way into the American high-end luxury-car market, and the result of that six-year, 145-billion-yen development process was the original Lexus LS. Here's one of those first-year LS 400s, used up at age 32 and residing in a Denver self-service car graveyard. Toyota had been selling reasonably luxurious rear-wheel-drive Cressidas in North America since the 1978 model year (in fact, Cressida sales would continue here through 1992), and before that we got the plush Crown. Those well-built cars were very comfortable and may have swiped a few sales from Oldsmobile or even BMW, but car shoppers here had come to associate the Toyota brand with sensible small cars and Warlord Grade trucks. Honda did very well selling luxed-up Accords and Civics with Acura badges, starting in 1986, and Toyota followed up with the Lexus brand for the LS 400 (as well as the Camry-based ES 250). In Japan, where the Toyota badge went on everything from sewing machines to the Emperor's personal Century (actually, Emperor Akihito's everyday driver was a Honda Integra sedan), there was no need for a separate luxury marque and the LS 400 was sold as the Toyota Celsior. Once the Lexus brand took off globally, however, Toyota eventually began using it for home-market vehicles. You can even buy a new Lexus bicycle in Japan today! The Cressida had a big straight-six engine, but the LS had to have a proper twin-cam V8 to do battle with the S-Class, BMW 7-Series, and Audi V8 (yes, the 7-Series didn't get a V8 until later, but the 750i had a V12). Toyota had been building aluminum-block hemi-head V8s for the Crown Eight and the Century since the middle 1960s, but that was an old-fashioned pushrod design and clearly too outdated for the LS. The LS got a 4.0-liter DOHC V8, designed from scratch just for the occasion; it had six-bolt main bearing caps and made 256 horses in the 1990 version.