By John LeBlanc for MSN Autos

It’s been five years since a new automobile plant opened in Canada. And the news this week that Nissan’s North American production expansion plans do not include our country makes us wonder: Will we ever see a new car plant be built in Canada again?

Since the Great Recession of 2008, global automakers have been shying away from Canada when it comes to so-called “greenfield” manufacturing commitments. Honda's new engine plant in Alliston, Ontario and Toyota's RAV4 assembly plant in Woodstock, Ontario in 2008 are the most recent, while Toyota has announced that it will add a new assembly line to its existing Cambridge, Ontario facility to start building Lexus RX 450 gas-electric hybrid crossovers next year. But the idea of an automaker building an all-new automaking facility in Canada seems as ancient an idea as the 1960s’ Auto Pact.

Bing: What is the Auto Pact?

For example, take Nissan’s North American expansion plans. The Japanese automaker currently builds vehicles in the U.S. and Mexico. But as part of a global effort to expand its Infiniti luxury brand, and in addition to producing the Infiniti JX crossover alongside its Nissan Pathfinder platform-mate in a Nissan pant in Tennessee, Nissan says it is considering adding a second production site in North America. But even after federal Industry Minister Christian Parades traveled to Japan to try and persuade Nissan to built the new Infiniti plant in Canada, Nissan Americas Chairman Colin Dodge told Automotive News that Canada is not on the list.

Now, Nissan hasn’t disclosed why its removed Canada from the list. In the past, the high cost of Canadian auto worker salaries and benefits (relative to some of their American and Mexican counterparts) and the lack of taxpayer-funded incentives to entice automakers here, have been cited as the two main reasons why a new auto plant in Canada is simply not going to happen any time soon.

A good example of what Canada is competing against comes from an announcement this week from Toyota. The Kentucky Economic Development Finance Authority has approved a $146.5 million U.S. tax incentive package to lure Toyota into expanding its Georgetown, Kentucky factory to start building its Lexus ES sedan there. Since it opened in 1988, the Kentucky pant has been the main production site for Toyota Camry sedans. With Toyota kicking in $531.2 million, the plant expansion could add up to 750 jobs on top of the 6,600 current workers.

Compared to the Kentucky, Toyota’s recent arrangement with the federal and Ontario governments for the new RX 450 hybrid expansion looks less attractive. Instead of outright tax breaks, Toyota is receiving $34 million Cdn. in “repayable contributions” after investing $125 million of its own money.

So what do you think? Do you feel Canadian governments should use taxpayer money to offer more subsidies to automakers to lure them to Canada? Should the autoworkers take lower salaries? Or are these sacrifices too high for the benefits of more manufacturing jobs?

Source: Automotive News

By John LeBlanc for MSN Autos 

All of its rivals have a head start. Some are already in their second-generation models. But from the What the Heck Took So Long department, it looks like Toyota’s premium Lexus brand has finally decided to jump into the exploding small SUV/crossover market.

A report from Automotive News says Lexus will unveil a concept of a new compact crossover at this fall’s Tokyo auto show, followed by the unveiling of the production version at the 2014 Geneva show, next March. The new-for-Lexus luxury cute-ute should then go on-sale in late-2014 as a 2015 model.

 

By Steve Mertl for MSN Autos

Suzuki’s announcement last week that it would stop selling cars in Canada after the 2014 model year was inevitable after its heavily indebted American counterpart filed for bankruptcy protection last fall and bailed out of the auto business.

The Japanese-based firm remains a serious international player, especially in Asia. But it has never really broken through with North American drivers. It plans to regroup and focus on sales of motorcycles, ATVs and marine products in the U.S. and Canada.

By Jake Lingeman, AutoWeek

The redesigned 2014 Lexus IS sport sedan will make its world debut at the Detroit auto show next week. But Lexus on Wednesday gave us a first look at the new car.

The 2014 Lexus IS uses a version of the platform that underpins the larger Lexus GS sedan. The IS will arrive with three main variants, including a hybrid and two F Sport upgrades.

The new IS gets the aggressive spindle grille of its stablemates, along with drastically reworked headlights, which now look like two parts of a wrestler's mask. Directly underneath the headlights are LED daytime running lights, which take the shape of a Nike swoosh. Wide wheel arches give the car an aggressive stance, while a character line sweeps from the bottom of the front tire to the top of the trunk.

By John LeBlanc for MSN Autos Canada

We’re less than one week away before the annual circus (a.k.a. "media days") comes to Detroit. And already we have a pretty good idea of what vehicles will and won’t be revealed. Some automakers may have a few surprises still hidden up their respective sleeves, but what 2013 Detroit show production or concept debuts that have already been officially — and unofficially — leaked or previewed are you most looking forward to checking out here at MSN Autos Canada next week?

Hans Greimel, AutoWeek

Lexus' 552-hp V10 halo car, the LFA sports coupe, drives into the sunset at an awkward time for the luxury brand.

During the LFA's two-year production run, which ended Dec. 14, it was positioned as the ultimate expression of Lexus quality and performance — and carried a US$375,000 sticker to match. The limited edition of 500 hand-built units sold out even before production began in December 2010.

But as Lexus struggles to reinvent itself as an emotional, pulse-pumping brand, the lineup loses the head-turning speed demon that spurred the image makeover in the first place.

Lexus executives concede they need a new halo.

"If we want to build a more emotional brand, then we need a halo car," Lexus Executive Vice President Kazuo Ohara said in a Dec. 17 interview. "We would like to have that sort of car."

But don't expect another rarefied supercar — at least not with the same stratospheric price point. In the post-LFA era, Lexus has different ideas for generating youthful excitement from the traditionally staid premium marque.

And a big part of that means winning oohs and aahs from nonhalo cars that are within the reach of mere mortals — cars that can actually be spotted on city streets, not simply preserved in climate-controlled garages by uberrich collectors.

By Mark Atkinson for MSN Autos

Still in shock that Lexus, purveyor of quiet, numb, boring cars and sport-utes, decided to make a performance-oriented F-Sport version of its new LS limo? We are too. But the bigger wheels and tighter suspension of the official model has nothing on this: the TMG Sports 650 Concept. TMG stands for Toyota Motorsport GmbH, which is the company's official European racing arm, and its been fiddling around with the idea of a hotted-up street-ready product for a few years now.

But this concept is seriously wild. Based on the pre-facelifted short-wheelbase LS, TMG have made substantial changes not only to the body, but to virtually every system and component underneath. The engine is a twin-turbocharged version of the IS-F's 5.0-litre V8, and apparently delivers 650 horsepower and 524 lb-ft of torque while somehow revving to a 9,000 rpm redline. The eight-speed automatic transmission remains, but we'd guess it's suitably beefed up for track duty. Enormous wheel-arches are stuffed with gigantic BBS wheels wrapped in sticky Michelin performance tires that in turn hide substantial brakes and a radically retuned suspension.

Visual changes are dramatic, including hood vents to help with engine cooling, and TMG claims everything was optimized in a wind-tunnel to aid in handling. Front and rear spoilers should help with downforce, while the quad pipes out back play on the aforementioned IS-F's controversial design. Nothing on this car is pretty, but you have to respect its functionality.

Apparently, TMG will show off the Sports 650 Concept at the upcoming Essen Motor Show - kind of like Europe's version of SEMA - in Germany next week and we're hoping they'll announce at least a short production run.

Would the idea of a Japanese performance limo scare the German luxo-car makers into action, just like when Lexus mopped the floor with them when the original LS debuted in 1989? Or is this simply a hopped up pretender to hi-powered six-figure monsters from Audi, BMW and Mercedes-Benz? Let us know if the comments.

By Mark Atkinson for MSN Autos

Although the notion that Lexus builds nothing but soft, quiet, cushy cruisers is being knocked down gradually thanks to cars like the V8-powered IS-F, the GS 350 F Sport and - of course - the V10-powered LFA supercar, there's still plenty of work left to be done. Lexus' latest move towards acceptance comes from Mark Clemons, the recent winner of the Unleash the LFA contest who received just about the most fun and exciting driving gift you can imagine.

Clemons was let loose at Mazda Raceway Laguna Seca, including a three-day high-performance driving experience from the fine folks at Skip Barber Racing, then let loose in the 552-horsepower LFA around the 'big track' after getting tips and advice from American racing legend Scott Pruett. To top it all off, Clemons then got to ride shotgun with Pruett as the latter put the yellow wonder through its paces with serious hot laps.

The video is great, and reminds everyone just how great the LFA sounds at full throttle. It's a well-done piece and well-worth the three-odd-minutes it takes to watch. Having only driven around Laguna Seca for the first time a few months ago in a Mazda CX-5, I can only imagine how thrilling it would've been to pilot something with more than three times the power...

Click through to watch.

 

By Hans Greimel, AutoWeek

For years, Toyota Motor Corp. has put hybrids at the center of its powertrain-technology strategy, all but oblivious to the rapid fuel-economy advancements rivals have made in the humble gasoline engine.

Meanwhile, Ford, Honda, Mazda, Hyundai, Volkswagen and others have turned to gasoline direct fuel injection and turbochargers. For them, those technologies were a quick, cost-effective route to better mpg. Turbochargers, for example, allowed them to maintain power output while making engines smaller, for a significant weight savings and higher fuel economy.

Now, in a major overhaul of its lineup, Toyota is playing catchup. It will introduce a new direct-injection engine next year and follow with a downsized turbocharged powerplant --its first--in 2014. It is also committing to continuously variable transmissions across its range of small- to medium-sized cars.

By Mark Atkinson for MSN Autos

This stunning coupe is Lexus' next-in-line concept it'll debut at this month's Paris Motor Show. Keeping with the themes introduced on the LF-LC at the recent North American International Auto Show in Detroit, the LF-CC is much closer to production proportions. In fact, this is probably the general shape of the next-generation of IS cars.

Currently, the only two-door IS you can buy is the convertible, but we'd hope Lexus fixes that for the next go-round. It does confirm in the release that Lexus will "launch... a premium mid-sized coupe in the more accessible D-segment in the near future."

The rear-drive LF-CC will show off the company's all-new 2.5-litre four-cylinder engine designed specifically for full-hybrid applications, including using the more efficient Atkinson cycle and direct-gasoline injection, which helps deliver more power and improve fuel efficiency. There aren't any specifics on power, fuel consumption or where it'll debut yet, but we'd expect Lexus to announce that during their presentation in Paris.

What do you think? Would an IS Coupe that looked like this with a hybrid engine float your boat?