There is no doubt regarding the fact that US is the largest market for this luxury vehicle and according to manufactures, this move is a natural follow up of such high demands. However, what they are not saying is that the present exchange rates in Japan are at best lopsided and as such exerting a negative impact on vehicle production in the country. Because of this reason, insiders feel that Toyota considered this shifting in their Lexus production plant to the U.S.
Until recently, the marketing of the Lexus luxury brand was exclusively for the US audience when Toyota began their aggressive global advertising to boost sales and increase the scope of their vehicle availability across the world. Therefore, Toyoda feels that the shifting of production unit in this country is befitting and in keeping with their demand on the US soil.
This is just the beginning; besides the $500M investment in Georgetown, Toyota is also considering a further two billion dollar investment for boosting its capacity in North America through additional production, in keeping with the demand of their twenty-three overseas markets. In 2012 exports from Toyota Motor rose to 45% and this year, the company is confident of a further boost.
The use of Georgetown plant for Lexus luxury vehicle production comes as a surprise to many. After all this is the first ever Toyota plant to begin operations on the U.S. soil besides being the largest ever. It is already producing Camry Sedan presently, which is a critical Toyota product. The planned expansion is all set to boost productions here by approximately fifty thousand units in the coming times and the total investment increases in tandem to a staggering six billion dollars. No wonder, there is going to be a boost in employments too.
With this shift, Toyota seems to have finally emerged from its traditionally Japanese base to consider greener pastures elsewhere to continue its position as one among the top global automobile manufacturers. The move in Lexus production may be indicative of many such future shifts.
