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China fines Toyota $12.5 million over Lexus price-fixing

BEIJING — China's market regulator on Friday has fined Japanese carmaker Toyota Motor 87.6 million yuan ($12.5 million) for price-fixing on its premium Lexus cars in eastern Jiangsu province, according to a document on its website. The decision comes as China steps up regulation over auto sales in the world's biggest vehicle market, where more than 28 million cars were sold last year. The anti-monopoly bureau of State Administration for Market Regulation said that between 2015 and 2018, the Japanese carmaker set a minimum sales and resale price for its cars in coastal Jiangsu province, which deprived dealers of pricing autonomy and harmed customers' rights. Lexus also fixed sales strategies in the region over the period, including offering customers discounts while asking them to purchase accessories at fixed prices, a sales tactic usual among individual auto dealers in China but frowned upon for carmakers. A spokesman at Toyota, Lexus' parent firm, told Reuters the firm acknowledged the penalty and respects the decision. He did not comment further. China's auto sales are declining, but Lexus' sales keep growing. It sold 180,200 vehicles in the first 11 months this year, a 21% jump from a year earlier. In June, China's market regulator imposed an 162.8 million yuan fine on Ford Motor Co's joint venture with Changan Automobile Group for violating anti-monopoly law. ($1 = 6.9927 Chinese yuan renminbi) Reporting by Yilei Sun and Norihiko Shirouzu. Related Video:

Toyota offered $146.5 million to build Lexus ES in Kentucky

Toyota posted a media advisory yesterday saying that Akio Toyoda, president of Toyota, and Jim Lentz, CEO of Toyota North America, would be making a production announcement tomorrow in New York City, and Automotive News reports that the automaker will be announcing a plan to domestically produce the Lexus ES. According to the report, numerous plants are competing to build the ES in North America, and the State of Kentucky has offered the automaker up to $146.5 million to build the luxury sedan at the Georgetown, KY assembly plant.
If Georgetown gets the ES, which has been built in Japan since its debut in 1989, it would be built alongside the Toyota Camry, which is somewhat ironic since in our review of the 2013 Lexus ES350, we wrote that this ES finally says "goodbye to its Camry roots." In order to get the whole amount offered, the article states that Toyota would have to invest $531.2 million and hire 570 full-time workers at the plant, which doesn't sound all that unreasonable since the plant would require an additional 50,000 units of annual production, not to mention the fact that the Georgetown facility is already at its capacity for building the Camry.

Lexus GS production and sales halted in Europe

We last wrote about the Lexus GS one year ago to editorialize about the rumored death of the luxury brand's sports sedan. Now, Dutch outlet AutoRAI claims to have gotten confirmation from Lexus Europe that the automaker stopped taking orders for the GS in March, and will cease production of the Euro-spec model in April. In keeping with last year's speculation, AutoRAI reports the next-generation, front-wheel-drive ES will fill the role of the rear-wheel-drive GS there. What this means for the GS in the States? We sill don't know. But we do know that the ES moved 51,398 units here last year, compared to GS sales of 7,773. Those numbers represent double-digit declines compared to 2016, when the sold ES sold 51,398 units and the GS sold 14,878. In August 2017, spy photographers caught the 2019 ES testing with the Audi A6 and Mercedes-Benz E-Class, hinting the coming ES has grander aspirations than being a florid Toyota Avalon. That still wouldn't make the ES a pure replacement for a sporty rear-drive sedan, but are there enough GS buyers for Lexus to care? Last October, Car and Driver reported that Toyota's Gazoo Racing brand was working on a new GS F, but C/D couldn't tell if Gazoo meant a new model or the current one. Last June, Lexus Australia head Peter McGregor refuted the death of the GS. When asked if dealers were interested in both the ES and GS, McGregor responded, "I think what dealers like is a full line-up... that meets the market requirement in every key segment." Making clear that he couldn't speak on future product, McGregor also commented, "I think [a new GS] would still be a four-door sedan in terms of its application, but the exterior styling may appear to be more liftback." The third-gen GS struck a fastback profile, and you could see the new LS as a modern evolution of that old GS design. A member at the Lexus Enthusiast fan forum has found that the the next GS, internally codenamed 300B, still shows up in industry databases alongside the date "SOP [Start of Production] Q2 2019." Throwing money at an updated GS F wouldn't make sense for a doomed sedan. Could the GS reappear as a four-door coupe? Certainly, if for no other reason than that Lexus needs something to fill the slot between the $38,950 ES and the $75,000 LS.