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Lexus NX will be produced in Canada

OTTAWA/MONTREAL — Toyota Motor Corp will build its Lexus NX luxury crossover vehicle at a Canadian plant starting in 2022, the company said on Monday, a decision that Prime Minister Justin Trudeau said demonstrated the value of the country's international trade agreements. The plant will invest hundreds of millions of dollars to produce the Lexus NX and its hybrid version at the factory in Cambridge, Ontario, "supplying the entire North American market," Trudeau said in a presentation with Fred Volf, president of Toyota's Canadian unit. Citing Canada's trade agreements with Mexico, the United States, Europe and Asia, Trudeau said: "We have preferential trade access to two-thirds of the global economy. In fact, we're the only G7 country that has free trade deals with every other G7 country." Trudeau, who faces a tough re-election contest in October, said the plans by Toyota, one of the world's largest carmakers, will help guarantee 8,000 jobs and the factory. The announcement is a "counter narrative" for Canada's automaking industry following recent bad news from other automakers, said Flavio Volpe, president of the Toronto-based Automotive Parts Manufacturers' Association, especially in the province of Ontario. Fiat Chrysler Automobiles NV said in March it would cut a shift at its Windsor assembly plant, leading to 1,500 job losses, and General Motors said last year it would shut its Oshawa factory by the end of 2019. Plans to assemble the NX in Canada "means that Toyota's Canadian manufacturing operations are here to stay," Volf said, adding that the cars are "the most technologically advanced and the most in-demand cars in the Toyota-Lexus global lineup." On Sunday, Trudeau hosted Japanese Prime Minister Shinzo Abe in Ottawa. Both touted the benefits of a Pacific trade deal that U.S. President Donald Trump walked away from. Trudeau said he had discussed the project to build the Lexus NX in Canada with Chief Executive Akio Toyoda on April 1. "When we last chatted just a few weeks ago, we discussed the potential of this new Lexus mandate," Trudeau said.

Japan may aid carmakers facing U.S. tariff threat

TOKYO — Japan is considering giving carmakers fiscal support including tax breaks to offset the impact from trade frictions with the United States and a sales-tax hike planned for next year, government sources told Reuters on Wednesday. Going into a second round of trade talks with the United States on Sept. 21, Japan is hoping to avert steep tariffs on its car exports and fend off U.S. demands for a bilateral free trade agreement that could put it under pressure to open politically sensitive markets, like agriculture. "If the trade talks pile pressure on Japan's car exports, we would need to consider measures to support the auto industry," a ruling party official said on condition of anonymity because of sensitivity of the matter. The auto industry accounts for about 20 percent of Japan's overall output and around 60-70 percent of the country's trade surplus with the United States, making it vulnerable to U.S. action against Japanese exports. Japan's biggest automakers and components suppliers fear they could take a significant hit if Washington follows through on proposals to hike tariffs on autos and auto parts to 25 percent. Policymakers also worry that an increase in the sales tax from 8 percent to 10 percent planned for October 2019, could cause a slump in sales of big-ticket items such as cars and home. Prime Minister Shinzo Abe has twice postponed the tax hike after the last increase from 5 percent in 2014 dealt a blow to private consumption, which accounts for about 60 percent of the economy. To prevent a pullback in demand after the tax hike, the government may consider large fiscal spending later when it draws up its budget for next year, government sources said. "One option may be to greatly reduce or abolish the automobile purchase tax," one of the government sources said. The government is also considering cuts in the automobile tax and automobile weight tax to help car buyers, the source added. Reporting by Izumi Nakagawa and Tetsushi KajimotoRelated Video: Image Credit: Getty Government/Legal Isuzu Mazda Mitsubishi Nissan Subaru Suzuki Toyota Trump Trump tariffs trade

Toyota, Lexus recall 460,000 vehicles for stability control issue

Toyota and its luxury subsidiary, Lexus, are recalling 460,000 electrified models produced for the 2020-2022 model years to address an issue that can cause the vehicles' stability control systems not to activate on startup. If you drive a new Toyota or Lexus and it has at least one electric motor in it (or it's the new LX 600), there's a better-than-even chance you'll be hearing from your dealer in the coming months. The good news for owners is that the issue is one of compliance, rather than something which may immediately endanger a vehicle occupant.  "A software error can cause the Vehicle Stability Control system (VSC) not to default to ON the next time the car is started under certain circumstances. This can result in a noncompliance with applicable regulations in the U.S," Toyota said in its announcement. "For all involved vehicles, Toyota and Lexus dealers will update the software of the Skid Control ECU free of charge to customers." Included in the campaign are the 2020-2022 Toyota Venza, Mirai, RAV4 Hybrid, RAV4 Prime, Sienna Hybrid, and Highlander Hybrid. On the Lexus side, it hits the LS500h, LX600, NX350h and NX450h+. Notably absent here are the Tundra-based trucks with the new iForce Max hybrid, though Toyota may have addressed the issue in those models before they went on sale. On the other side of the coin, the LX 600 — a purely ICE model for the time being — managed to stumble into the defect pool.  Toyota says owners should receive notices before the end of June. Related Video: This content is hosted by a third party. To view it, please update your privacy preferences. Manage Settings. Green Recalls Lexus Toyota Safety Luxury