2014 Lexus Es 350 Base on 2040-cars

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The next steps automakers could take after sales drop again in April

DETROIT (Reuters) - Major automakers on Tuesday posted declines in U.S. new vehicle sales for April in a sign the long boom cycle that lifted the American auto industry to record sales last year is losing steam, sending carmaker stocks down. The drop in sales versus April 2016 came on the heels of a disappointing March, which automakers had shrugged off as just a bad month. But two straight weak months has heightened Wall Street worries the cyclical industry is on a downward swing after a nearly uninterrupted boom since the Great Recession's end in 2010. Auto sales were a drag on U.S. first-quarter gross domestic product, with the economy growing at an annual rate of just 0.7 percent according to an advance estimate published by the Commerce Department last Friday. Excluding the auto sector the GDP growth rate would have been 1.2 percent. Industry consultant Autodata put the industry's seasonally adjusted annualized rate of sales at 16.88 million units for April, below the average of 17.2 million units predicted by analysts polled by Reuters. General Motors Co shares fell 2.9 percent while Ford Motor Co slid 4.3 percent and Fiat Chrysler Automobiles NV's U.S.-traded shares tumbled 4.2 percent. The U.S. auto industry faces multiple challenges. Sales are slipping and vehicle inventory levels have risen even as carmakers have hiked discounts to lure customers. A flood of used vehicles from the boom cycle are increasingly competing with new cars. The question for automakers: How much and for how long to curtail production this summer, which will result in worker layoffs? To bring down stocks of unsold vehicles, the Detroit automakers need to cut production, and offer more discounts without creating "an incentives war," said Mark Wakefield, head of the North American automotive practice for AlixPartners in Southfield, Michigan. "We see multiple weeks (of production) being taken out on the car side," he said, "and some softness on the truck side." Rival automakers will be watching each other to see if one is cutting prices to gain market share from another, he said, instead of just clearing inventory. INVESTORS DIGEST BAD NEWS Just last week GM reported a record first-quarter profit, but that had almost zero impact on the automaker's stock. The iconic carmaker, whose own interest was once conflated with that of America's, has slipped behind luxury carmaker Tesla Inc in terms of valuation.

Lexus TX three-row SUV coming in about 18 months

When we drove the 2018 Lexus RX 350L for the first time, we called it "generally a far superior vehicle to the GX," but also a "seemingly quick-and-dirty solution" to address the chasm in the Lexus lineup: Lack of a large, three-row SUV on a unibody chassis to counter competition like the Mercedes-Benz GLS and BMW X7. Lexus die-hards were asked to accept the compromises of the silken RX L or parachute into the truckish LX (because the GX is shorter than the RX L). Automotive News reports there's a patch coming. Sources told the outlet a model called the Lexus TX will put three-row seating for adults on a unibody architecture, debuting about six months after the three-row Toyota Grand Highlander that's expected in the middle of 2023. Bolstering that report, Toyota applied to trademark the TX name in 2009, then suspected to be a Mercedes-Benz GLK fighter below the Lexus RX. Toyota followed that up with applications for TX 350 and TX 500h in 2020. The Grand Highlander is the key piece, the TX being Lexus' version of the Toyota. We don't know how much length either vehicle will bring to showroom floors. The 2022 Highlander is 194.9 inches long, the RX 350L stretches two inches beyond that to 196.9 inches. The 2022 Toyota Sequoia is 205.1 inches long, nearly five inches longer than the 2022 Lexus LX. That gives Toyota a hair over eight inches to play with — comparing the RX L with the Sequoia, and assuming the all-new 2023 Sequoia doesn't break the measuring tape — if it doesn't want to present the Grand Highlander as merely a unibody Sequoia. Both new three-row models will be built at Toyota Motor Manufacturing Indiana, in the process of an $803 million makeover "in preparation to introduce two all-new, three-row SUVs." When the automaker announced the investment in the Princeton, IN facility, it said both models would offer seating for up to eight people, hybrid powertrains, "a semi-automated driving system — which will allow for hands-free driving in certain conditions — a remote parking system allowing the driver to park and unpark from outside the vehicle using a smartphone, and a digital key that turns a user's smartphone into their key and allows them to share it digitally." Lexus dealers no doubt have their calendars circled. The chairman of the brand's National Dealer Advisory Council told AN the TX "can't come fast enough." Related video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

2023 Lexus LC 500 and LC 500h get updated suspension system

Lexus is making a handful of changes to the LC for the 2023 model year. Again offered as a coupe and as a convertible, the firm's range topper gets an updated suspension system and a new paint color, among other changes, and it costs slightly more than the 2022 model. The most significant changes for 2023 are invisible to the naked eye. Lexus notes its engineers optimized the front and rear suspension to "enhance ground contact feel, linear steering response, and steering effectiveness in the high cornering G range." While the LC is more of a grand tourer than a track-ready sports car, these updates should make it more engaging to drive on a twisty road than the 2022 model. Buyers who prioritize handling can order an optional Sport Package that bundles a limited-slip differential, Yamaha performance dampers, performance brake pads, and Alcantara upholstery. While the package isn't new, it gains 21-inch forged alloy wheels for 2023. The only other visual change is a new color called Cloudburst Gray that Lexus charges $500 for. It bumps the number of available colors up to nine. Finally, every 2023 LC offers a 10-year subscription to the company's connected services. The drop-top LC also benefits from these updates, and it receives a lighter soft top as well as an optional feature called Climate Concierge that adds a few weeks to convertible season by keeping each passenger's upper body warm. The function can even direct warm or cold air to the back of the driver's hands. Lexus is not making mechanical changes to the LC for 2023. Power for the LC 500 comes from a naturally-aspirated, 5.0-liter V8 rated at 471 horsepower and 398 pound-feet of torque. It spins the rear wheels via a 10-speed automatic transmission, and it sends the coupe from zero to 62 mph in 4.4 seconds. While that's the LC Convertible's only engine option, the coupe is also offered with a gasoline-electric hybrid powertrain built around a 3.5-liter Atkinson-cycle V6 and rated at 354 horsepower. It shifts through both a CVT and a four-speed automatic. The new model year also brings a small price increase: the LC now starts at $94,600 including a $1,150 destination charge. Pricing for the full range is as follows: LC 500: $94,600 ($475 more than in 2022) LC 500h: $100,600 ($475 more than in 2022) LC 500 Convertible: $102,650 ($475 more than in 2022) On sale now, the 2023 Lexus LC will begin arriving on dealer lots in November 2022.