2002 Lexus Ls430 Navigaton Mark Levinson System Drives New Cold Package on 2040-cars

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Toyota profits up 23% on high US sales, despite mounting legal costs

Toyota earned $9.3 billion in net income in the financial year that ends next month. The number beats earlier forecasts and marks a five-year high for the automaker, with both operating income and revenue up by 9.5 percent and 2.5 percent, respectively. Toyota saw quarterly profit enjoy a year-on-year jump of 23.4 percent, with the manufacturer earning more than $1 billion between October and December 2012. The good news comes in spite of the fact that the Japanese automaker actually endured an operating loss in North America, due in part to legal fees.
Toyota is set to pay more than $1 billion to owners who claim their vehicles decreased in value as a result of the company's recent spate of recalls. Even so, all three of the automaker's brands enjoyed a 13.5 percent sales increase in the US in the last quarter, beating the industry average. Toyota faltered in Europe, however, where it earned $99 million in operating profit last year, compared to $111 million in 2011. You can take a closer look at the company's full press release below for more information.

Lexus in no hurry to be a big player in China

For a while now, China's spiraling wealth, population and development has had the world's luxury automakers in an expansionist fervor, with many executives exhibiting the sort of gleefully maniacal behavior historically reserved for gold-rush prospectors. Yet Toyota, of all companies, is exercising a surprising amount of caution in the Asian nation.
As The Wall Street Journal notes, Toyota's premium brand, Lexus, sold all of 64,000 vehicles in China last year, while BMW cleared its books of 326,000. In fact, it didn't even bother entering the market until 2005, while rival Audi built its first car in the market a decade and a half earlier. Even now, Lexus doesn't build any vehicles in China, and with the country's notoriously high tariffs on imports, that's a major disadvantage. Yet the business daily quotes Lexus executive vice president Mark Templin as saying that the brand is nowhere near ready to start building cars in the market. "We're not having those discussions about when we're going to go to China... We have a lot of work to do before we get to that point."
Part of that work includes establishing a more expansive dealer network - Lexus only had 99 stores as of 2012, while rival Mercedes-Benz had over two-and-a-half times as many, and it's still expanding. Adding a lot of dealers without having a goodly number of competitively priced offerings for them to sell may seem like an odd strategy, but Templin tells the WSJ that the goal is to "cultivate our image for quality and customer service and let the customers that we have go tell that story for us."

This is what a Lexus RC-based 'four-door coupe' might look like

It feels like there is a secret law in Germany mandating that every domestic automaker there must offer at least one model with a four-door coupe bodystyle like the BMW Gran Coupes, Mercedes-Benz CLS and Audi A7. Several of the German brands even have the swoopy sedans in multiple sizes. So far, Lexus has stayed out of that fray, but maybe not for long, if a recently spotted test car makes it to market.
The brand is known to be testing a highly styled four-door coupe, roughly the size of the GS, under heavy camouflage. Little is known about the new model at the moment, but its existence makes sense. If it really wants to take the on Germans, Lexus is going to have to fight them toe-to-toe with competing models - especially with ones understood to have high margins.
Pictured above is a rendering from artist Theophilus Chin imagining a slightly smaller take on the genre based on the RC coupe, which he calls the RC GT. His design leaves the original shape almost untouched, but shortens the front doors to allow room for a rear doors under the arching roof. His GT would be aimed more against the BMW 4 Series Gran Coupe and rumored Mercedes-Benz C-Class four-door coupe, rather than the larger models Lexus actually appears to be targeting with its vehicle under development. His concept certainly nails the look, though, and while it might not have a basis in reality, we thought that it's well-resolved enough that you'd want to take a look, if only as a "what could've been" flight of fancy.