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Lexus May Think About Moving Production To China

Oct. 06, 2018 9:15 PM ET by Jared Rosenholtz Industry News / 26 Comments Is Toyota finally choosing profit over quality? Toyota really wants to be more successful in China. The Japanese automaker has already entertained the idea of sharing its secrets for the Prius with China to help increase its market share there. A few years ago, Toyota even thought about moving Lexus production to China to help lower costs but decided against it due to fears of decreased quality. Reuters reports that the discussion to move Lexus production to China may be back on the table in order to help the company close the sales gap with German rivals. Lexus currently imports cars to China from Japan but has researched how to build cars in China andd spoken with its Chinese joint-venture partners, Guangzhou Automobile Group and FAW Group, though it isn't known who initiated the conversations. Moving to China would certainly help Lexus sell more cars there, but the decision is far from cut and dry. A Lexus insider said, "We're torn over this." Another insider added, "But it makes little sense to let this opportunity slip by." The insiders asked to remain nameless because they are not authorized to speak to the media. Lexus Thanks to efforts by Tesla CEO, Elon Musk, China has rolled back its restrictions on foreign investment. This means Lexus would be free to start building cars in China without a local partner. Toyota already produces the Camry, Highlander, Corolla, Levin, and Crown with the help of Chinese partners, so it does have some experience in the market. Lexus wants to be known as a premium brand in China but does want to sacrifice its reputation in the United States. With the recent tariffs imposed on China, a move there could be risky for Lexus. This has been a decision Lexus has pondered for years, so it will be interesting to see if the company finally makes the move. Lexus Lexus

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Lexus UX Hybrid Jared Rosenholtz Editor-at-Large After graduating with an MBA, Jared pursued his love of cars by becoming an automotive journalist. An internship with CarBuzz grew into his current position as Editor At Large. Jared now spends most of his time evaluating new vehicles and chasing the latest news stories in the automotive industry. When he’s not attending Cars & Coffee events on the weekend, Jared loves to watch NFL football and cruise around with the top down in his German convertible. Contact Jared @Carsnbites @jar_rosenholtz LoginSign Up Home News Features Car Reviews Car Advice 2021 CarBuzz Awards New Cars Used Cars Future Cars Compare Cars Sell My Car Car Dealerships Buy Here Pay Here Used Car Reviews Popular Tags Cars # Video # TOP # Spy Shots # Reveal # Rumor # Auto Show # Supercar # Tuning # Car Culture # Industry News # Motorsport Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Make Acura Alfa Romeo Aston Martin Audi Bentley BMW Bollinger Bugatti Buick Cadillac Caterham Chevrolet Chrysler Dodge Ferrari Fiat Fisker Ford Genesis GMC Hennessey Honda Hyundai Infiniti Jaguar Jeep Karma Kia Koenigsegg Lamborghini Land Rover Lexus Lincoln Lordstown Lotus Lucid Motors Maserati Mazda McLaren Mercedes-Benz Mini Mitsubishi Nissan Pagani Polestar Porsche Ram Rimac Rivian Rolls-Royce Spyker Subaru Tesla Toyota Volkswagen Volvo By Car Type SUVs Crossovers Sedans Coupes Trucks Sports Cars Wagons Vans Hatchbacks Convertibles Small Cars Luxury Cars Electric Cars Hybrid Cars Future Cars By Price Up to $15K $15K - $25K $25K - $35K $35K - $45K $45K - $55K $55K - $75K $75K - $100K $100K - $200K $200K - $300K Above $300K Back To Top