Lexus Not Sold On Made-In-China Vehicles

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Lexus Not Sold On Made-In-China Vehicles

Made-in-China has always had a rough reputation when it comes to quality and Lexus isn’t helping things.

According to a report by Bloomberg, the Japanese automaker will continue making cars in Japan, despite incurring significant cost penalties for importing its vehicles into China, rather than making them in China.

See Also: When Will Chinese Cars be Sold in the US?

“There’s too much quality risk in China to produce there,” said Takashi Yamamoto, executive vice president of Lexus International. “When that difficulty is gone, maybe local production is likely to be launched in China, maybe several decades later,” he said.

In comparison, Lexus’ biggest rivals, including BMW, Mercedes and Audi are all manufacturing cars locally for the Chinese market, which helps keep their prices down compared to Lexus vehicles.

The view that made-in-China cars aren’t as well built goes against recent studies that have found that Chinese built cars are improving in terms of quality. Then again, Lexus has always held the quality benchmark and it credits its Japanese manufacturing facilities as part of that reputation. Only two Lexus plants exist outside of Japan, a newly opened Kentucky plant that manufacturers the ES sedan, while a plant in Ontario makes the RX  crossover.

Lexus suggests that China’s lack of experience in building vehicles is an indicator of less than stellar quality. On the other hand, the company hasn’t experienced the same growth in the country as its German rivals, chiefly because its cars are so expensive due to the import taxes.

“Made-in-Japan guarantees quality,” said Yamamoto. “If you shift to made-in-China, there could be some peripheral issues accompanied with this.”

[Source: Bloomberg]

  • craigcole

    This is refreshing, as EVERYTHING is built in China these days.

  • Bill Lui

    I agree with Lexus, China I believe is at the same stage as Japan after the war. They have not established an infrastructure that can support quality services for their products. The manufacturing sector has not established a creditable logistics system for any of the products made in house. All the products made for companies outside China is supported and warranted by those companies mature customer service departments. The Chinese cost of labor is their savings. However, if the Japanese would provide the management of the production facilities to their standards I do not see why there would be any quality issues. If China would read and follow Deming’s advice maybe in a decade or two they may catch up with Germany and Japan. Auto manufactures have been successful in many counties like Brazil, Mexico etc. without compromising quality.

  • bd

    Lexus prices are already “down: as their top sellers are the FWD-based models.

  • johnls39 .

    Lexus needs to throw in the towel and start making cars in China. They are losing against the competitors who are already making cars there to escape from the steep import taxes and will be left behind due to their stubbornness. Give the Chinese people of what they want.

  • synapticflow

    And give us crap full of lead and other poisons.

  • synapticflow

    And then you have the “Bend over and take it” guy atop the comments saying “Yay Lexus! Go ahead and make Chinese crap.”

  • johnls39 .

    You’re reaching.