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Lexus considers additional powertrains for the F Performance brand

As the European hardcore competition integrates small-displacement engines and hybrids ( Mercedes-AMG), as well as pure electrification ( Polestar), Lexus' F Performance brand sticks to eight-cylinder guns. The IS F, RC F, and GS F all use the same 5.0-liter V8, the brand's hallmark all the way back to the 2007 IS F. Things could be changing, though, to hear Lexus president Yoshihiro Sawa tell it during his first visit to the Goodwood Festival of Speed. He told Auto Express that "we cannot stick to the one solution when it comes to providing emotion." It sounds like a hybrid has the best chance of reality in the near-term. In April, Lexus said several powertrain options are "all on the table" for the primary brand, and we know Lexus is working on a more powerful hybrid system. Sawa broached the unexpected idea of "a pure F GT car, which could be a hybrid with an electric motor and a strong engine." Mention of a "pure F GT" has us wondering if Sawa means a version of the rumored LC F, or another vehicle above or beside that LC F. A trademark filing and heaps of rumor posit the LC F will have a 4.0-liter twin-turbo V8 pushing 600 horsepower or more. It's also possible Lexus plans to do something with the anticipated Gazoo Racing road-going supercar that reworks the hybrid powertrain from Toyota's LMP1 race car. An electric vehicle is under consideration as the F Performance brand works to "think of our own original way," and Lexus itself tries "to find a way to connect to the next era." Sawa knows performance buyers seek the feel and sound of an ICE, but says "we cannot stick to the one solution when it comes to providing emotion." The subcompact Lexus UX crossover will be half-electrified when it arrives later this year, one of its powertrains putting electric motors on the rear axle. The brand boss said "We will introduce an EV," but whatever they create needs to be both "lovable" and "have a luxury feeling," the former adjective leading us to believe the F sub-brand won't be going down that avenue just yet. The only reasonable candidate we've heard of so far as a battery electric version is the next-generation CT in Europe. Speaking of the CT, the compact hatchback has brought new buyers to the brand with a 70 to 75 percent conquest rate. Sawa said the spindle grille has done the same; sales have grown since the introduction of the polarizing face, so don't expect it to go away.

Lexus in no hurry to be a big player in China

For a while now, China's spiraling wealth, population and development has had the world's luxury automakers in an expansionist fervor, with many executives exhibiting the sort of gleefully maniacal behavior historically reserved for gold-rush prospectors. Yet Toyota, of all companies, is exercising a surprising amount of caution in the Asian nation.
As The Wall Street Journal notes, Toyota's premium brand, Lexus, sold all of 64,000 vehicles in China last year, while BMW cleared its books of 326,000. In fact, it didn't even bother entering the market until 2005, while rival Audi built its first car in the market a decade and a half earlier. Even now, Lexus doesn't build any vehicles in China, and with the country's notoriously high tariffs on imports, that's a major disadvantage. Yet the business daily quotes Lexus executive vice president Mark Templin as saying that the brand is nowhere near ready to start building cars in the market. "We're not having those discussions about when we're going to go to China... We have a lot of work to do before we get to that point."
Part of that work includes establishing a more expansive dealer network - Lexus only had 99 stores as of 2012, while rival Mercedes-Benz had over two-and-a-half times as many, and it's still expanding. Adding a lot of dealers without having a goodly number of competitively priced offerings for them to sell may seem like an odd strategy, but Templin tells the WSJ that the goal is to "cultivate our image for quality and customer service and let the customers that we have go tell that story for us."

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