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Lexus might introduce an all-electric successor to the CT hatchback

Despite sales of the Lexus CT hybrid hatchback ending last year in the U.S., Lexus isn't planning to abandon the hatchback segment in favor of the new compact crossover, the UX. The CT remains on sale in some countries, and Lexus's European boss is adamant the brand has to keep offering hatchbacks. Talking to the British AutoExpress, Lexus's Pascal Ruch says the CT has an important purpose, which is introducing new customers to the Lexus brand. Ruch told AutoExpress that the CT has a high "conquest ratio" of 70-75 percent, and that a CT customer is different from the envisioned UX customer. "I believe that all the segments we are now in, it's important to stay there," added Ruch. AutoExpress says the CT could be replaced in 2020 with a model that would be offered both as a hybrid and as all-electric, built on Toyota's new TNGA global platform. The hybrid is likely to be the 177-horsepower 2.0-liter unit seen in the new European Auris, which corresponds to the new U.S. market Corolla Hatchback. The CT's successor could be sold as both a conventional hatchback and a more crossover-like version, much like the new Ford Focus and its Active trim level; Ruch says Lexus is thinking through a new approach for the CT. The CT was introduced way back in 2011, selling some 15,000-17,000 examples per year in the U.S. until its first really weak year, 2016, which saw less than 9,000 cars sold. The following year, which proved to be its last model year in the United States, sales dropped under 4,700. In Europe, it's different for Lexus: The brand overall sells only some 45,000 cars per year, and the CT's steady sales of more than 8,000 cars per year are quite important for it. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings.

Lexus eschews production in China over quality concerns

One of the more popular trends in the auto industry is setting up production operations in China. Mainstream manufacturers like Ford, General Motors and Volkswagen have done it, and even luxury marques like Audi, BMW and Mercedes-Benz have or will soon have manufacturing ops in the People's Republic.
One company that isn't building cars in China, though, is Lexus. The Toyota-owned luxury brand still manufactures all of its vehicles in Japan (aside from a few RXs, which are built at a Toyota factory in Canada). According to Tokuo Fukuichi, Lexus just isn't ready to build cars there yet.
"The German Three have a brand image that they have cultivated over the past century in their long history, but Lexus is not in people's minds like that yet," Fukuichi-san told Reuters UK.

Lexus LFA prototype spied lapping the Nurburgring with new bodywork

The Lexus LFA was a real engineering tour de force. Sure, it was stuck in development hell for years, and the 4.8-liter V10's 552-horsepower output wasn't super impressive when it came out, but it integrated a ton of expertise Toyota gained from its F1 team in the early to mid 2000s. Unfortunately, it didn't sell well. Last year, we found there were a few new models sitting on dealer lots, five years after the 500-model run ended. Still, it looks like Toyota may not have given up on the idea of a race-derived flagship for Lexus, at least based on this prototype running around the Nurburgring this week. At first glance, the car pictured here looks like an LFA with the Nurburgring Package and some camouflage on the front and rear fenders. If you look closely, you can see that the fenders are significantly wider than on the standard LFA. Based on the license plate, this appears to be the same car with two different sets of wheels. Lexus may simply be swapping out worn tires, or they may be testing different wheel and tire combinations to fit the wider wheel wells. Anything beyond this is just speculation. There have been rumors of a new flagship Lexus sports car that sits atop the LC 500 and LC 500h. We saw the Toyota GR Super Sport Concept back in January, though that car looks nothing like what we see here. As much as we would love that sweet Yamaha co-developed V10 to carry over, we're not holding our breath. Some sort of hybrid powertrain is almost a certainty. Maybe Lexus and Toyota could pull some tech from its Le Mans-winning TS050 Hybrid race car. Related Video: