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Lexus NX begins production in Japan [w/videos]

Lexus entered new territory this past April when it revealed the new NX compact luxury crossover at the Beijing Motor Show, but it wasn't until now that the Toyota luxury division actually started building them. The first production examples started rolling off the assembly line last week at the Miyata plant in Japan, with the accompanying turbo engines built at the adjacent Kanda plant.
The arrival of the NX marks both the first time that Lexus has produced a compact crossover - an increasingly important segment for luxury automakers - and the first time Lexus has offered a turbocharged engine, one of two options alongside the hybrid version. The NX builds on two previous competences exhibited by Toyota: one is the RAV4, which pioneered the compact crossover segment back in 1994, the other being the Lexus RX that was among the first luxury crossovers when it arrived in '97.
Lexus reports that it has already taken some 6,500 pre-orders in Japan alone, with many more coming in from markets around the world - including ours, where it is sure to be a key player for the Japanese automaker alongside the hot-selling RX. Watch the videos below to see the NX starting its production run in Japan.

Luxury car brands scrambling to avoid a blue Christmas

DETROIT — When financial markets surge to new records, sales of luxury cars usually rise, too. Instead, October U.S. auto sales reports on Wednesday showed that a collapse in sales of luxury sedans is accelerating. Consumers have gradually shifted over to luxury sport utility vehicles from sedans in the past decade, but the trend — which has occurred in both the non-luxury and luxury sedan segments of the auto market — was particularly pronounced in October. Sales of Daimler AG's Mercedes-Benz S-Class, long a global benchmark for large, premium sedans, plunged 49 percent in October, and are down 24.8 percent for the year to date. General Motors' Cadillac brand said it sold just 779 of its CTS sedans in October. Demand for that car, designed to compete with German luxury sedans, is down nearly 33 percent for the year. "There's still a significant portion of the market that wants a car, but I'm sure there were people who preferred a horse to a car at one point." Cadillac's best-selling model this year is the XT5 compact SUV, which has more than doubled sales from a year ago. The shift within the luxury vehicle market away from sedans toward SUVs of all sizes is forcing some of the most prestigious brands to scramble to add SUV models to their lineups or boost SUV production to meet demand. "In the short term, there will be pressure to add (consumer) incentives, cut production or both," said Cox Automotive analyst Michelle Krebs. "And we just don't see an end in sight to this trend." The Dow Jones Industrial Average has been trading at all-time highs, usually a good sign for luxury sedans, but as major automakers reported new U.S. vehicle sales for October on Wednesday, sales for passenger cars continued their slide while luxury SUV and crossover sales rose again. According to Kelley Blue Book data, in 2007 luxury sedans made up 7.6 percent of U.S. new vehicle sales, while luxury SUVs made up 4.2 percent. Through September this year, luxury SUVs made up just over 7 percent of the market, compared with 4.9 percent for luxury sedans. In the short term, luxury brands could use holiday season sales promotions to clear slow-selling sedans off dealer lots, analysts said. Toyota's Lexus brand said on Wednesday it will launch its "December to Remember" year-end sales promotion for the 18th straight year.

Earthquake causes most of Toyota's Japan operations to shut down

Toyota is idling a large portion of its Japanese assembly plants as a result of the devastating earthquake in Hokkaido, Japan. The earthquake had such a big effect on the carmaker's supply chain that a number of its plants will have to be shut down for an undisclosed period, starting on Saturday. The 6.7 magnitude earthquake occurred early on September 6 th, resulting in more than dozen casualties and hundreds of injuries, cutting power to the entire island; the powerplant supplying half of the island's power was located so close to the earthquake's epicenter that it shut down automatically, bringing down the rest of the island's grid with it. Tens of people were also reported missing, as reported by Reuters. The affected factories are the Kyushu, Tahara and Toyota Auto Body plants, according to Automotive News, and they manufacture vehicles such as different Lexus models and the Toyota Land Cruiser. Some of the models produced in these factories are exported to the United States, but a Toyota spokesman said that North American operations are not likely to be significantly affected by the plant closures. As well as the automobile assembly plants in Hokkaido, Toyota also has a facility there that manufactures transmissions and transfer cases. As it was also without power, Toyota could not confirm when the plant would be back online. Out of Hokkaido's 2.95 million households, 1.54 million had regained power by Friday afternoon. All in all, Toyota has 18 manufacturing facilities in Japan; spokeswoman Akito Kita said that from Monday on, the shutdown will affect all Japanese Toyota and Lexus lines — not including two Daihatsu facilities that are also used for Toyota products. The shutdowns come directly after Toyota also announced a recall for Japanese-built hybrid models, mainly Prius. Related Video: