Hoovey689

iTrader: (16)

^^ thanks for the info

I don't really have a problem with Lexus building/assembling/manufacturing their cars outside of Japan, simply because ToMoCo applies the same stringent standards for all of their factories. In fact some probably have even better quality control because of it. I believe the Cambridge plant in Ontario Canada which produces the RX is one of the most awarded facilities out there.

Sulu

This is the spacing between vehicles on the assembly line. The manufacturing of a complete vehicle from start of metal stamping to driving off the line takes hours. When one vehicle starts assembly and enters the line, another vehicle follows 5 minutes (or 3 minutes) later.

Johnhav430

Forbes asked the same question last Fall. I'm not an Audiphile, but for me? Deal breaker. Not because the vehicle isn't as good, it likely is. But it's no different than a Snap On hand tool not being made in USA. Freightliner has been made in Mexico for an awful long time. They are needed to get a job done, command a decent market share, and wouldn't bother me one bit that they're made in Mexico. Would I prefer Kenworth, which is made in USA? If it were a leisure vehicle. But it's a work vehicle, and so my choice would be a Mexican made Freightliner.

Sulu

I don't think Lexus is considering shipping ES assembled in India to North America. My guess is that Lexus would ship Indian-assembled ES to East and Southeast Asian nations such as Singapore and Malaysia and Vietnam (the Asian Tigers) where there are rapidly growing numbers of affluent business people who are looking to spend their money on more expensive, luxury goods, including cars.

It would be less expensive to assemble and export from India than from Japan.

Audi started assembling cars in China 30 years ago and now the Chinese are hooked on Audis. If Lexus can sell ES models inexpensively yet profitably in these new markets, they could have guaranteed markets in a few years.

Hoovey689

iTrader: (16)

Is it an ES200 out there? (due to restrictions on displacement in some countries)

sorptd

That is correct, this is for the local domestic / regional market to take advantage of lower duties when cars are assembled locally. MB, BMW, Audi already manufacture locally in India & end up being cheaper to Lexus.

situman

Isnt assembling just as important as manufacturing? The last thing I want are loose screws and/or weak welds in my expensive new car.

Toys4RJill

bitkahuna

iTrader: (20)

most people don't care about where something is made, but a lot of people care about the product's image and branding. most iphones are made in china... do people care? no. heck most EVERYTHING is made in china, do people care? no.

it didn't suffer when bmw started making tons of cars in south carolina! tariffs aside, why is that ok but mexico isn't? people by bmw's because of the roundel, the image, and the product.

for now, but you're right, the intent is to avoid the giant finished car tariff in india because sending in 'assemblies' is subject to much lower tariffs. it's all about money and opportunity.

and i'd bet most of those who will and do buy a lexus built in north america have never heard of CL

i didn't write the article but it does seem to be up to the usual 'curated' standard.

nope.

(great post ) and the reason for lexus too. the tariffs on finished cars into india i believe are insane, like 75% or something.

exactly.

so if it's a liesure vehicle you're not ok with it made outside the u.s. (even though you drive a lexus made in japan i believe ) but if it's a work vehicle, you're ok with it being built outside of the u.s.
whatever floats your boat, but that makes zero sense to me.

well if assemblies are designed to be put together in a 'no brainer' kind of way that is easy to quality control, then having the local talent connect assemblies vs. building the highly complex assemblies themselves from scratch, is far less risky.