Toyota and Kentucky state representatives confirmed what president Akio Toyoda – after a moment of silence for the tragedy in Boston where he went to graduate school – termed “one of our worst kept secrets” – Lexus ES350 assembly in 2015.
It’s the first Lexus to be made in the US but not North America – the RX SUV is built in Cambridge, Ontario, in Canada. The ES move from Kyushu to Kentucky will generate 750 new jobs and Toyota will spend US$360m readying the Georgetown plant for it.
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About 50,000 Lexus vehicles a year – about half of current Kyushu ES output, according to earlier unsourced reports – will be produced, bringing the plant’s total annual production capacity to more than 550,000 vehicles. It will be the first time the ES will be assembled outside of Japan.
“Lexus was founded in the United States, so it is only fitting that we are bringing the production of luxury sedans for our US customers back to where the brand was born,” said Toyoda at an event in New York.
“Today’s announcement is a major step in our global vision to make ever better cars and trucks, give regions greater autonomy to make the products their customers want and achieve sustainable growth globally.”
Production of the ES 350 at the Georgetown plant is the latest step in Toyota’s continuing strategy to assemble vehicles in the markets where its customers live. Over the past 17 months, the company has announced plans to increase production capacity at its plants in Mississippi, Indiana, West Virginia and Canada, reflecting a cumulative spend of approximately $2bn that has created more than 4,000 new jobs. Toyota also recently announced executive changes designed to provide regional managers with more local control and a streamlined decision-making structure to help the company deliver superior customer-focused products and services.
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By GlobalDataJim Lentz, Toyota’s chief executive officer for North America, said: “We’re extraordinarily proud to have helped create over 365,000 jobs across the country and to produce so many of the industry’s highest quality vehicles right here in the United States. Today, Toyota’s 14 North American plants already produce seven out of every 10 vehicles that we sell in America, and North American-assembled vehicles are now exported to 23 countries.”
Established in January 1986, Toyota Motor Manufacturing Kentucky (TMMK) is Toyota’s largest factory outside Japan, employing approximately 6,600 people. The plant currently assembles the Camry and Hybrid, Avalon and Hybrid plus the Venza crossover and manufactures I4 and V6 engines. It has earned 10 Initial Quality Plant Awards from JD Power and Associates, including four gold.
In 2012, the plant produced the 25 millionth Toyota vehicle built in North America. Toyota recently committed to boosting production capacity for the I4 engine at the plant by more than 100,000 units. This $30m project will create about 80 new jobs.
The ES is Lexus’ bestselling sedan, with approximately 58,850 vehicles sold in North America in 2012 – 56,158 in the US. Projections for Toyota’s production volume at the company’s Kyushu plant in Japan have not changed. The company remains committed to building 3m vehicles per year in Japan, including Lexus models, as previously announced.
“Since 1990 we have sold nearly 1.2m ES sedans in the US and it has one of the highest customer loyalty rates in the Lexus lineup,” Toyoda said.
