Toyota’s scrapped plans for the LF-ZC, the sedan that was set to serve as the new Lexus flagship. The move, Toyota said, reflects “fluctuations in market demand and the workload associated with vehicle planning and manufacturing,” and marks a sharp turnaround in EV strategy by the Japanese automaker’s new CEO. More from Headlight.News.
The LF-ZC concept’s Direct4 all-wheel-drive system and steer-by-wire, with a yoke-style steering wheel.
Toyota pulled the plug on what was to be the new Lexus flagship and the showpiece for the parent company’s target of selling 1 million EVs annually.
The decision, first reported by Japan’s Nikkei business daily, comes at a time when Japanese automakers, in general, are sharply scaling back their EV programs. But Toyota and its Lexus brand still are moving ahead with a number of other all-electric models, including the Toyota Highlander EV and Lexus TZ, both due to land in U.S. showrooms for the 2027 model-year.
Company officials said they scrapped plans for the LF-ZC “taking into account fluctuations in market demand and the workload associated with vehicle planning and manufacturing,” reported Automotive News.
What was the LF-ZC?
Toyota has rolled out a number of LF-Z prototypes in recent years. That included the LF-ZC and LF-ZL models first shown at the Japan Mobility Show in October 2023. The ZC was designed to blur the lines between sedan and crossover, much as the Toyota brand has done with the hybrid Crown models.
Set to debut later this year, the EV was intended to use next-generation battery technology to improve range and performance, while speeding up charging times, the automaker said at the time, estimating range at 622 miles. That was based on the global WLTP test cycle. U.S. EPA numbers typical come in about 20% lower – which still could have yielded something close to 500 miles.
It also claimed the battery pack would be able to go from a 10% state-of-charge to 80% in just 20 minutes.
Carrying forward
The Toyota Corolla Concept debuted at the Japan Mobility Show last November.
While it remains unclear when Toyota might introduce that next-gen battery technology, the LF-ZC program could still have a significant impact on what the company does going forward.
The LF-ZC also was expected to introduce a number of new technologies including a more advanced AI infotainment system and updated manufacturing processes.
That was to include the use of “gigacasting,” where dozens of stamped steel or aluminum parts are replaced by single, large pieces of cast aluminum. It’s a process first widely used by Tesla. It is now being adopted by a number of other manufacturers and will be a key process adopted by Ford for the Univeral EV program it plans to put into production in 2027.
Meanwhile, the LF-ZC’s extremely aerodynamic design language strongly influenced the prototype shown at the Japan Mobility Show last November that is expected to return as the next-generation Toyota Corolla.
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New CEO reverses course
New Toyota CEO Kenta Kon (right) and his predecessor Koji Sato.
The decision to unplug the LF-ZC comes less than two months after Kenta Kon took over as Lexus CEO. A self-described “money guy,” Kon’s appointment was seen as a strategic shift and he is expected to follow with further cuts to the company’s line-up, particularly in the EV sector.
“I’m a guy that loves numbers. I’m a guy that loves money,” Kon said during a February 6 media briefing announcing his appointment replacing Koji Sato as chief executive. “I always think about money and creating a financial foundation, so we can make good cars.”
Sato promoted a “BEV-first mindset” during his three years as Toyota CEO. His plan called for the parent company to sell 3.5 million all-electric models by 2030, with Lexus contributing 1 million of those. The luxury brand was then expected to evolve into an all-electric brand.
For his part, Kon plans to continue rolling out some new EVs, including the Toyota C-HR, bZ Woodland and Highlander EV, while Lexus is just rolling out a version of the ES offering multiple powertrain options – including all-electric – as well as the battery-only TZ next year. But the new CEO is expected to pull back on other EVs, in line with what other Japanese companies, including Nissan, Mazda and Honda have been doing.
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