Lexus Moves Production Closer To China

That Lexus will come out with a new ES Hybrid, dubbed the ES300h, is no secret.  Being an entry level Lexus, it has to watch its price point. It also has to contend with the high yen, most of the Lexi are exported. The Nikkei [sub] thinks it know how Toyota will solve this dilemma, at least partially. Toyota will make the ES300h on the Japanese island of  Kyushu, "taking advantage of the site's proximity to Asian suppliers of low-cost parts," The Nikkei says. "Asian suppliers of low cost parts" usually is code for China. Indeed, Toyota could be saying: "If we don't go all the way to China, we might as well go halfway." Kyushu sits midway between Tokyo and Shanghai. Other companies, such as Nissan, already make use of the strategic location. Not only is Kyushu just short container hop across the sea to parts suppliers, it also is what the Nikkei calls "a convenient base for exporting to the growing Asian automobile market."   from The Truth About Cars http://www.thetruthaboutcars.com

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