Toyota to consolidate Lexus production in US, boost hybrid output

WASHINGTON -- Toyota Motor will consolidate its two Lexus plants in the U.S. into one in the face of high tariffs imposed by the administration of President Donald Trump, Nikkei has learned.

The move is aimed at reinforcing U.S. production of hybrid vehicles, which face intense price competition, while shifting some production of high-end Lexus cars, which sell well, to Japan.

Toyota makes Lexus ES sedans in Kentucky and Lexus TX, full-size sport utility vehicles (SUVs) in Indiana.

Japan's largest automaker will discontinue production of the Lexus ES after meeting current orders, and export the next model, which is due out next year, from Japan. After the consolidation, the Indiana plant will be the company's sole Lexus plant in the U.S.

Toyota will continue production of two other Lexus models at its plant in Canada. "We select appropriate production sites in accordance with price ranges," Toyota's U.S. subsidiary said.