Toyota to Build More SUVs as U.S. Demand Rises
#1
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Toyota Motor Corp. (7203) will build more sport-utility vehicles this year at factories in Japan and Canada to meet rising U.S. demand, the carmaker’s top North American executive said.
Expanding output of models such as the Toyota RAV4 and Lexus RX will be a test of President Akio Toyoda’s plan to squeeze more vehicles out of existing factories before building new plants. That strategy remains in place, said Jim Lentz, chief executive officer of Toyota’s North American operations.
“The freeze is still in place until the end of March of 2016,” Lentz said in an interview at the North American International Auto Show in Detroit. “That hasn’t changed. All indications are that it will lift, but right now it has not lifted.”
Toyota will keep making more SUVs after its combined sales of such models climbed 16 percent last year to a record. Even before gasoline prices started their descent toward $2 a gallon, Americans were shifting from passenger cars and buying more SUVs, now built to offer relative roominess with little compromise on fuel economy.
Strong U.S. sales, led by SUVs, have helped Toyota stay ahead of Volkswagen AG to remain the world’s largest automaker. The VW brand sells just two SUVs in the country -- the compact Tiguan and upscale Touareg -- while Toyota fields five. The Japanese automaker is now considering smaller SUVs for further growth, Lentz said.
“We’re going to have to look at how the market under RAV4 develops,” Lentz said. “There’s no question that it’s going to. That’s going to be the next growth spurt.”
Lexus NX
Toyota can raise production of the RAV4 and RX in Japan and Canada this year, Lentz said. Lexus will also have its first full year of producing the smaller NX SUV, which outsold competing models from Bayerische Motoren Werke AG and Daimler AG’s Mercedes-Benz last month in the U.S.
Toyota has the opportunity to sell 300,000 RAV4s annually in the U.S., although it may not cross that threshold this year, Bill Fay, a Toyota division group vice president, said in an interview. The company delivered 267,698 RAV4s in the U.S. last year.
Lexus has already increased production of the NX beyond the original plan since the vehicle went on sale in the third quarter of last year, Executive Vice President Mark Templin said in an interview.
“If it shows that it has more legs, then we’ll have to address it again,” he said, declining to give specific production figures.
Toyota hasn’t said whether fourth-quarter sales kept the company ahead of Volkswagen, which said this week it delivered more than 10 million vehicles for the first time in 2014. The German carmaker trailed Toyota by about 72,000 vehicles in the first nine months of the year.
Expanding output of models such as the Toyota RAV4 and Lexus RX will be a test of President Akio Toyoda’s plan to squeeze more vehicles out of existing factories before building new plants. That strategy remains in place, said Jim Lentz, chief executive officer of Toyota’s North American operations.
“The freeze is still in place until the end of March of 2016,” Lentz said in an interview at the North American International Auto Show in Detroit. “That hasn’t changed. All indications are that it will lift, but right now it has not lifted.”
Toyota will keep making more SUVs after its combined sales of such models climbed 16 percent last year to a record. Even before gasoline prices started their descent toward $2 a gallon, Americans were shifting from passenger cars and buying more SUVs, now built to offer relative roominess with little compromise on fuel economy.
Strong U.S. sales, led by SUVs, have helped Toyota stay ahead of Volkswagen AG to remain the world’s largest automaker. The VW brand sells just two SUVs in the country -- the compact Tiguan and upscale Touareg -- while Toyota fields five. The Japanese automaker is now considering smaller SUVs for further growth, Lentz said.
“We’re going to have to look at how the market under RAV4 develops,” Lentz said. “There’s no question that it’s going to. That’s going to be the next growth spurt.”
Lexus NX
Toyota can raise production of the RAV4 and RX in Japan and Canada this year, Lentz said. Lexus will also have its first full year of producing the smaller NX SUV, which outsold competing models from Bayerische Motoren Werke AG and Daimler AG’s Mercedes-Benz last month in the U.S.
Toyota has the opportunity to sell 300,000 RAV4s annually in the U.S., although it may not cross that threshold this year, Bill Fay, a Toyota division group vice president, said in an interview. The company delivered 267,698 RAV4s in the U.S. last year.
Lexus has already increased production of the NX beyond the original plan since the vehicle went on sale in the third quarter of last year, Executive Vice President Mark Templin said in an interview.
“If it shows that it has more legs, then we’ll have to address it again,” he said, declining to give specific production figures.
Toyota hasn’t said whether fourth-quarter sales kept the company ahead of Volkswagen, which said this week it delivered more than 10 million vehicles for the first time in 2014. The German carmaker trailed Toyota by about 72,000 vehicles in the first nine months of the year.
#3
The pursuit of F
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The Miyata plant in Japan is being ramped up for max capacity of 120k units per year for the NX due to the crazy global demand. Beyond that, there's speculation of retooling a portion of a RAV4 plant (Canada maybe) to build more NXs. Of course, this is if the RAV4 doesn't hit its own capacity at this rate.
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#4
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Stupid Auto Blog deleted my comment, after pointing out how I knew Toyota was bluffing when they said nothing below the NX would come. I referred to Auto Blog as "stupid", for previously referring to raised CT-based mules (with Audi Q3) in 2013 as the NX, when clearly the RAV4 mules (with our RR Evoque) in 2012 were the NX. Guess they didn't like that.
![](http://lexusenthusiast.com/images/weblog/13-05-15-lexus-nx-mule-4.jpg)
The author Brandon Turkus is a degenerate of a writer and should be dismissed for continual inaccuracy and errors in his material. It seems they prefer insipid "fanboyish" trolls in their comment section and not distinguished experts sparing some free time.
![](http://lexusenthusiast.com/images/weblog/13-05-15-lexus-nx-mule-4.jpg)
The author Brandon Turkus is a degenerate of a writer and should be dismissed for continual inaccuracy and errors in his material. It seems they prefer insipid "fanboyish" trolls in their comment section and not distinguished experts sparing some free time.
#5
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The Miyata plant in Japan is being ramped up for max capacity of 120k units per year for the NX due to the crazy global demand. Beyond that, there's speculation of retooling a portion of a RAV4 plant (Canada maybe) to build more NXs. Of course, this is if the RAV4 doesn't hit its own capacity at this rate. ![Stick Out Tongue](https://www.clublexus.com/forums/images/smilies/tongue.gif)
![Stick Out Tongue](https://www.clublexus.com/forums/images/smilies/tongue.gif)
#6
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Stupid Auto Blog deleted my comment, after pointing out how I knew Toyota was bluffing when they said nothing below the NX would come. I referred to Auto Blog as "stupid", for previously referring to raised CT-based mules (with Audi Q3) in 2013 as the NX, when clearly the RAV4 mules (with our RR Evoque) in 2012 were the NX. Guess they didn't like that.
![](http://lexusenthusiast.com/images/weblog/13-05-15-lexus-nx-mule-4.jpg)
The author Brandon Turkus is a degenerate of a writer and should be dismissed for continual inaccuracy and errors in his material. It seems they prefer insipid "fanboyish" trolls in their comment section and not distinguished experts sparing some free time.
![](http://lexusenthusiast.com/images/weblog/13-05-15-lexus-nx-mule-4.jpg)
The author Brandon Turkus is a degenerate of a writer and should be dismissed for continual inaccuracy and errors in his material. It seems they prefer insipid "fanboyish" trolls in their comment section and not distinguished experts sparing some free time.
As to the small SUV, I just noticed PR about Turkish government giving Toyota €477 million for plant expansion and 3rd model. This has to be small SUV model, since they are value oriented and have to be produced locally to make money in Europe. Plant produces Corolla and Verso already, so probably something on same platform, like that CT mule.
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#8
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TX should be 3-row... we wont see either of them on sale this year though so who knows what is coming first... TX will be focused on USA while baby NX will be focused on Japan and Europe, but might get Toyota version earlier.
#11
Lexus Fanatic
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term has become very blurred, with cuv and suv being used interchangeably these days. for a moment there i was thinking cuv was crossover utility vehicle, but typically it means compact utility vehicle i think. ![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
they can call 'em tall hatchbacks for all i care.
the market's on fire.
![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
they can call 'em tall hatchbacks for all i care.
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#14
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First I've heard this speculation but who knows it may happen. The TX so far has been linked to a 3 row SUV (extended RX) by the so called auto experts in the media. After their total fail of the 4RX being out at the Detroit auto show I take their reporting with a grain of salt now.
Last edited by rogerh00; 01-20-15 at 07:05 AM.
#15
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Seriously I don't understand what do poor people want to do with CUVs. A wagon or van is way more practical if you need space. I understand luxury SUVs to some extent, but they are nowhere close to the utility of a true 4x4 or pick-up.