What Would Lexus Gain by Moving its Global HQ to SoCal?
#1
What Would Lexus Gain by Moving its Global HQ to SoCal?
#2
Lexus Fanatic
The most significant gains will be:
1. Increased profit (without increasing the MSRP)
2. Better resonance with the American people as a "more" American luxury brand (Lexus' largest market is the US). Need to be designing and building in the US in the same fashion as Toyota needs the Tundra coming out of Texas.
3. Less chance of part and supplier distruption
4. Fill in the production gaps where needed.
The most important is #1, Toyota must be profitable (and more profitable) without increasing MSRP.
1. Increased profit (without increasing the MSRP)
2. Better resonance with the American people as a "more" American luxury brand (Lexus' largest market is the US). Need to be designing and building in the US in the same fashion as Toyota needs the Tundra coming out of Texas.
3. Less chance of part and supplier distruption
4. Fill in the production gaps where needed.
The most important is #1, Toyota must be profitable (and more profitable) without increasing MSRP.
#3
Not to be a deliberate troll, but so far as the auto industry is concerned, US build and quality do not go together. I believe that the major reason people admire Lexus is their superior build quality.
#4
Lexus Fanatic
The most significant gains will be:
1. Increased profit (without increasing the MSRP)
2. Better resonance with the American people as a "more" American luxury brand (Lexus' largest market is the US). Need to be designing and building in the US in the same fashion as Toyota needs the Tundra coming out of Texas.
3. Less chance of part and supplier distruption
4. Fill in the production gaps where needed.
The most important is #1, Toyota must be profitable (and more profitable) without increasing MSRP.
1. Increased profit (without increasing the MSRP)
2. Better resonance with the American people as a "more" American luxury brand (Lexus' largest market is the US). Need to be designing and building in the US in the same fashion as Toyota needs the Tundra coming out of Texas.
3. Less chance of part and supplier distruption
4. Fill in the production gaps where needed.
The most important is #1, Toyota must be profitable (and more profitable) without increasing MSRP.
No. I have to disagree on several of these points.
1. Increased profit (without increasing the MSRP)
Need to be designing and building in the US in the same fashion as Toyota needs the Tundra coming out of Texas.
14. Fill in the production gaps where needed.
The most important is #1, Toyota must be profitable (and more profitable) without increasing MSRP.
Last edited by mmarshall; 12-14-11 at 09:06 PM.
#6
Guest
Posts: n/a
#7
Lexus Fanatic
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#8
Lexus Fanatic
Possible, but it is clear that there is no business case for a V8 in the GS at this time.
The move to the USA for HQ followed by building Lexus cars in the USA is strictly about costs and appealing more to US masses.
At the end of the day, a US built Lexus model while be cheaper to build and delivery to a customer than a Japan made model. This cheaper cost allows the MSRP to stay flat and not increase.
Folks, there is a reason why Toyota build so many cars and trucks in the USA...its about costs and the future of Lexus will be in the US or Lexus will not grow.
The move to the USA for HQ followed by building Lexus cars in the USA is strictly about costs and appealing more to US masses.
At the end of the day, a US built Lexus model while be cheaper to build and delivery to a customer than a Japan made model. This cheaper cost allows the MSRP to stay flat and not increase.
Folks, there is a reason why Toyota build so many cars and trucks in the USA...its about costs and the future of Lexus will be in the US or Lexus will not grow.
#10
American can.
#11
Lexus Connoisseur
At the end of the day, a US built Lexus model while be cheaper to build and delivery to a customer than a Japan made model. This cheaper cost allows the MSRP to stay flat and not increase.
Folks, there is a reason why Toyota build so many cars and trucks in the USA...its about costs and the future of Lexus will be in the US or Lexus will not grow.
True they do, but Lexus division in USA is the most seasoned of all the Lexus global markets. The other Lexus markets use the USA as a model for their sales and marketing efforts. They don't necessarily use them as the US is a unique market for Lexus.
2) smaller earthquakes
#12
Lexus Fanatic
That's not entirely true...the move for Global Lexus HQ to move to the US is the fact that the Lexus division was an American idea from the start...specifically here in Southern California. TMC went to Orange County to study the luxury lifestyle in America and they found it was the perfect place to help put together a luxury marque.
That's not entirely true because if that was the case, the RX would be built in the United States instead of mainly Japan and Canada. True that the USA is Lexus' largest and oldest market, but we're not talking about manufacturing here, we're talking about global operations. Because Lexus USA has the expertise in strategy, it would only make sense to bring its headquarters to the experienced folks in Torrance.
The main reason why Toyota builds many cars in the US is because of American demand for specific models (Camry, Avalon, Venza, Corolla, Sienna, Tacoma, Tundra) Note that majority of these models are North American spec only. Camry and Corolla are built in many other global Toyota plants as well. We still get Japanese built Camrys and Corollas here in the US. It would make sense to build an ES here in North America as the RX and ES are Lexus' bread and butter volume sellers here.
True they do, but Lexus division in USA is the most seasoned of all the Lexus global markets. The other Lexus markets use the USA as a model for their sales and marketing efforts. They don't necessarily use them as the US is a unique market for Lexus.
LOL not quite because California is part of the Ring of Fire and earthquakes of those magnitudes can happen here. Its just a matter of when.
That's not entirely true because if that was the case, the RX would be built in the United States instead of mainly Japan and Canada. True that the USA is Lexus' largest and oldest market, but we're not talking about manufacturing here, we're talking about global operations. Because Lexus USA has the expertise in strategy, it would only make sense to bring its headquarters to the experienced folks in Torrance.
The main reason why Toyota builds many cars in the US is because of American demand for specific models (Camry, Avalon, Venza, Corolla, Sienna, Tacoma, Tundra) Note that majority of these models are North American spec only. Camry and Corolla are built in many other global Toyota plants as well. We still get Japanese built Camrys and Corollas here in the US. It would make sense to build an ES here in North America as the RX and ES are Lexus' bread and butter volume sellers here.
True they do, but Lexus division in USA is the most seasoned of all the Lexus global markets. The other Lexus markets use the USA as a model for their sales and marketing efforts. They don't necessarily use them as the US is a unique market for Lexus.
LOL not quite because California is part of the Ring of Fire and earthquakes of those magnitudes can happen here. Its just a matter of when.
#13
Lexus Fanatic
American demand, of course, was part of it, but the main reason why Toyota originally came to America and did the Georgetown, KY and (with GM) the Fremont, CA NUMMI plant was because of the Reagan Administration's quota, back in the 1980s, on Japanese-imports. Those import-restrictions severely limited the number of vehicles that could be shipped from Japan and unloaded at U.S. ports, screwing up the supply-demand situation and allowing dealer mark-ups and indifferent customer service. . To get around those quotas, Toyota decided to start producing new vehicles on the North American continent....the same reasoning behind the Honda plant at Marysville, OH.
Those quotas, BTW, and the 25% import-truck tariff, were the reasons why Toyota trucks of that vintage all had those rust-out rear beds. To get around the tariff (which only applied to whole-trucks), Toyota shipped the chassis/frame/cabin/powertrain assemblies from Japan and had the beds welded on here on the West Coast, after unloading at the dock. They used defective, poor-quality welds, which rusted out from the inside......there wasn't much you could do to stop it, even with proper care.
#14
Lexus Connoisseur
American demand, of course, was part of it, but the main reason why Toyota originally came to America and did the Georgetown, KY and (with GM) the Fremont, CA NUMMI plant was because of the Reagan Administration's quota, back in the 1980s, on Japanese-imports. Those import-restrictions severely limited the number of vehicles that could be shipped from Japan and unloaded at U.S. ports, screwing up the supply-demand situation and allowing dealer mark-ups and indifferent customer service. . To get around those quotas, Toyota decided to start producing new vehicles on the North American continent....the same reasoning behind the Honda plant at Marysville, OH.
Those quotas, BTW, and the 25% import-truck tariff, were the reasons why Toyota trucks of that vintage all had those rust-out rear beds. To get around the tariff (which only applied to whole-trucks), Toyota shipped the chassis/frame/cabin/powertrain assemblies from Japan and had the beds welded on here on the West Coast, after unloading at the dock. They used defective, poor-quality welds, which rusted out from the inside......there wasn't much you could do to stop it, even with proper care.
Those quotas, BTW, and the 25% import-truck tariff, were the reasons why Toyota trucks of that vintage all had those rust-out rear beds. To get around the tariff (which only applied to whole-trucks), Toyota shipped the chassis/frame/cabin/powertrain assemblies from Japan and had the beds welded on here on the West Coast, after unloading at the dock. They used defective, poor-quality welds, which rusted out from the inside......there wasn't much you could do to stop it, even with proper care.