Lexus ES North American Production a Possibility

Lexus ES North American Production a Possibility
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Lexus will be mulling over the possibility of bringing its new-generation ES production to North America to help curb the negative effects of the current exchange rate.

The entry-level ES model is always in high demand at Lexus dealerships across the nation. According to Tim Morrison, vice president-sales and dealer development, dealerships are lobbying for North American production. But don’t expect any moves to be made quickly, shifting production to North America would be a big task for the Japanese automaker. “It’s a lot of money, and there’s timing with changeovers, etc.,” Morrison said.

Unfortunately there currently isn’t any excess capacity in North America to add Lexus production, and right now its Japanese factories have more than enough capabilities to support all current markets. But as Lexus continues to expand globally, a shift to North American makes financial sense.

The U.S. accounts for 40 percent of Lexus’ overall sales and the automaker estimates that the half of the ES production will be headed to America. China will make up 30 percent while Europe will take up the remaining 20 percent of ES allocations.

We’ve already outlined and reviewed all the changes on the new 2013 Lexus ES model, which is based on an all-new platform and for the first time since 1989 doesn’t share the same basic architecture as the Toyota Camry. Lexus hopes these changes will bring in new buyers to the luxury brand.

[Source: Wards Auto]