Toyota Motor Corp. has announced that it would be assembling the Lexus ES till the year 2015 at its Kentucky plant. It would be the first time when the Japanese Auto Maker would be making one of its luxury vehicle with the domains of the United States of America. The company had also said on Friday that would be making an investment of $ 360 million in the Greentown factory in the United States.
This factory of the company is also responsible for making Toyota Camry and many other models. Moreover, this move taken from the side of Toyota would be creating nearly 750 or more jobs. Moreover, the plant’s output capacity would also be boosted to nearly 550,000 vehicles. In other words, the output would be notched to a level of about 10 % in comparison to the previous production dynamics. The reason for expanding the US production is all because the company plans to produce cars at the place where most of the customers live.
This move would also come to counter to quite strong yen due to which the export from Japan has been expensive. The president of the Company, Akio Toyoda, said that the decision that had been taken happens to be in lines with 2 core goals and is also designed to reduce the effect of the exchange rate. It is a fact that the United States market happens to be the largest and the most developed in terms of the luxury vehicles.
Jim Lentz, who happens to be the head of the North America operations of the company, had made a prediction about the economic growth of about 2 % which is similar to that of 2012. Moreover, Toyota had also been offered tax breaks worth of about $ 146.5 million in terms of adding production to the Georgetown plant. Lentz also said that if you all take a look at Kentucky, then you would know that it is our oldest plants. He said this in response to the question that whether the ES could be made in some other plant.
He also added that we happen to have the most experienced workers and team members who are working at the plants. In terms of making the models like Prius, the company declined to make any sort of comments.