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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.

2016 Toyota RAV4 Hybrid electrifies with updated styling, more tech

Since the launch of the Prius, Toyota has been closely identified with hybrids and electrification. However outside of the rather niche RAV4 EV, the company hasn't brought the efficient tech to the smallest crossover in its US range. That all changes with the debut of the 2016 RAV4 Hybrid at the 2015 New York Auto Show, and the crossover launches alongside a thoroughly refreshed RAV4 lineup. Similar to the Lexus NX 300h, the RAV4 Hybrid combines a 2.5-liter, four-cylinder engine running on the Atkinson cycle and an electric motor, and both axles get power thanks to the standard Electronic On-Demand All-Wheel-Drive System. Toyota is keeping the exact technical specs about the CUV a secret until closer to the fall launch but admits the hybrid setup offers more than the 176 horsepower in the internal combustion model. The electric assistance means quicker acceleration and better fuel economy, as well. Beyond just the availability of the hybrid powertrain, the 2016 RAV4 gets sharper, more aggressive styling. The changes start at the nose where the foglights are recessed in the front bumper, and the design draws the eye across the lower grille. There are also reshaped lights at the rear and a redesigned lower bumper with silver skid plate trim. Inside, the improvements include niceties like better material quality, an added USB port up front and cupholders for tall mugs. While the styling looks great, Toyota is also seriously upgrading the available tech for its strong-selling CUV. Buyers can spec a full array of LED lighting, including the headlights, running lights and taillights. There's also the new Toyota Safety Sense suite that adds pre-collision braking, lane departure warning radar cruise control and more. For help with parking, the company has the four-camera Bird's Eye View Monitor, as well. The RAV4's trims carry over and get a new addition called the SE. Its biggest features are a retuned sport suspension, 18-inch wheels, contrasting exterior trim and a black headliner. It also comes fairly loaded with features with the aforementioned LED lights. With all of these changes, Toyota is continuing to take the crossover market seriously. Look forward to live images of the upgraded RAV4 from the Big Apple in the near future.

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