For the first time, a Lexus vehicle will be produced in the United States. The Lexus ES 350 will be assembled at Toyota Motor Manufacturing, Kentucky in 2015, Toyota announced today.
The move will generate 750 new jobs. To support the new dedicated assembly line, Toyota will invest $360 million in the Georgetown plant.
About 50,000 Lexus vehicles a year 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.
Toyota moved the first Lexus outside its Japan factories, and into a Canadian plant a decade ago. That was the RX crossover SUV, which is the best-selling Lexus in the U.S. And Toyota wasn’t exactly benign about it.
“Producing the Lexus ES in Kentucky makes sense for Toyota,” says Alec Gutierrez, at Kelley Blue Book.
Kentucky Gov. Steve Beshear thanked Toyoda, and said, “We are deeply honored that you have entrusted the manufacturing of your top-selling Lexus sedan to us in Kentucky. We realize the care and pride you take in this vehicle, and that it requires the utmost in a skilled workforce, not to mention top-quality components.”
The production shift “signals that Toyota is willing to break tradition to gain a stronger foothold in the U.S. and could hint that additional Lexus nameplates” will come to U.S. factories, says Gutierrez. Toyoda’s pace could make that happen sooner.
Toyoda and Lentz made the Lexus ES 350 production announcement at a press conference prior to a major New York City event showcasing Lexus’s commitment to groundbreaking design and its redoubled focus on creating a global luxury brand experience.
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