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Lexus GX and LX future may be in doubt

With the debut of an all-new RX, Lexus is in a position for continued strong sales in the luxury SUV arena. The fourth-generation RX has grown, making room for the new NX model beneath it. But further up the ladder, things could change for the GX and LX. In an interview with Autoblog at the 2015 New York Auto Show, Lexus executive vice president Mark Templin gave some hints at the future of his brand's SUV lineup. "With NX and RX, we have a really good one-two punch in the crossover segments, and we think we can cover most of the markets with that," he said. As for the larger, three-row GX and LX models, which are built on a traditional ladder-frame chassis, things aren't so clear. Templin noted the the success of both models all over the world – the LX is the best-selling Lexus in Saudi Arabia. The same is true for sales here, he said: "We do very well with those products in the United States – GX has been a great product for us in the US for the last couple of years since its initial introduction. But the future of those vehicles longer term is in doubt because of regulations that are being driven by governments all over the world." Don't start stockpiling LX 570s in anticipation of shortages just yet. Templin didn't give any specifics; he just notes that tightening fuel economy and emissions regulations could affect product planning. In our analysis, if and when GX rides off into the sunset, Lexus still needs a midsize, three-row SUV to fill that gap. The most likely candidate for that is some variation on the RX. Whether or not that's the case, don't expect a BMW-like proliferation of body styles from Toyota's luxury division. "It creates problems. It creates complexity, that's hard for every step of the process," Templin said, nothing that too many models stresses the design department, manufacturing, and even dealers inventory selection. As for the bottom end of the lineup, Templin wouldn't comment on a compact SUV below the NX, saying "I think there are more potential options for us in the future, but we're not trying to grow the number of models we have in our lineup. It's not really what our core business is about." For now, Lexus and Templin are focused on launching the RX, which accounts for three of every 10 Lexus models ever sold. The 2016 model, available in RX 350 and RX 450h hybrid versions, goes on sale by the end of the year. Related Video:

Lexus sails the seas in luxury with its first-ever yacht

Lexus is taking its pursuit of luxury lifestyle offshore with a production version of its LY 650 yacht, revealed in Boca Raton last week. Now one can have an oceangoing Lexus to go with the LC 500 parked in the garage. Based on its Sport Yacht Concept revealed in 2017 and announced for production last year, the 65-foot yacht was developed with and built by Marquis Yachts LLC, which also adopted Toyota's latest manufacturing and quality assurance methods. The LY 650's styling was cooperatively penned with Nuvolari Lenard, which designs luxury yachts. Lexus and its partners designed the LY 650 with a high-tech hull that's a combination of lightweight but rigid CFRP (carbon fiber-reinforced plastic) and GFRP (glass fiber-reinforced plastic), to reduce weight without sacrificing structural integrity. The LY 650 is powered by dual Volvo Penta IPS1350 marine engines making 1,000 horsepower each, or buyers can choose 800 or 900 hp engines instead. The ship's master can even operate the LY 650 with a new LY-Link smartphone wireless connectivity system that controls the boat's functions and uses real-time information to assist navigation. Keeping seafarers entertained is an integrated Mark Levinson Surround Sound audio and entertainment system designed specifically for the LY 650 to offer "concert hall-like" acoustics in the main deck's salon. There are three decks: topside with secondary controls, salon on the main deck, and three cabins below that sleep six. "The LY 650 symbolizes the challenge taken by Lexus, which aspires to be a true luxury lifestyle brand, to venture beyond the automobile. A collaborative team between Toyota and Marquis Yachts introduced the Toyota Production System to the boat manufacturing facility to improve productivity and quality,” President Akio Toyoda said in a statement. “This allowed the Lexus "CRAFTED" philosophy of anticipatory hospitality and meticulous attention to detail to become a reality in the form of a luxury yacht. I am truly looking forward to seeing the advanced, high quality LY 650 display its beauty on the oceans across the globe. As a mobility company, we are pursuing new possibilities for mobility even on the sea." Lexus is not the only luxury automaker to hear the call of the sea: Porsche created a yacht, and there's a Bugatti Chiron sister ship along with the Mercedes Silver Arrow. Even Henrik Fisker has dabbled with yacht design.

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.