I think perhaps you should offer your services to Lexus, you seem to have all the answers.

 

This entire thread reminds me of this.....

 

@Blueprint LMAO!!!!!! Am I the only one observing this^^ Thats some funny right there.

 

HAHA, that made my day. I needed that!

 

Maybe he can go work for Lexus as a business consultant...not...

 

Obviously Lexus isn't cancelling the ES since it'll be made in the U.S. starting 2015. I still think that isn't a good idea. I think Lexus should continue to produce the ES 350 in Japan or maybe in Canada. The ES 300h will still continue to be produced in Japan.

I'm very sure Toyota is getting some major incentives (tax or real estate) to produce the ES 350 in Kentucky otherwise Lexus would have continued to produce the ES 350 in Japan or even Canada. The RX sells twice as many ES's and I can see why Canada produces some of the RX's. I guess Canada isn't giving any incentives to Lexus to produce the ES 350 in Canada.

Akio Toyoda is making Lexus his pet project but is thinking more like a shrewd businessman when it comes to the ES with major cost cutting and even producing the ES 350 in the U.S. What's up with that?

 

I'm sure Lexus will continue to produce ES models in Japan, just not for the US market. I think it's a wise move. The ES is not even offered in Japan, so there is no point to keep producing so many cars there, that sell in high volume elsewhere in the world. Plus, I'm sure they'll be saving tons of money on shipping.

 

why do you want them to produce it in Canada but not USA?

 

It's come down to quality. A good example is Audi producing vehicles in Mexico and lots of quality issues have arose. I understand the Japanese will supervise the U.S. plants, the engineering, processes, procedures, philosophies, etc., etc. are Japanese. Toyota is a Japanese global company through and through. In my opinion the employees building cars in their respective countries whether Lexus or Audi take serious pride in their work and the quality speaks for itself. As for Canada they now have the experience and expertise on building Lexus vehicles. In the beginning there were quality differences between Canadian and Japanese RX's. My personal opinion still stands that the ES 350 should still be produced in Japan or Canada. Leave the mainstream Toyota to be made in the U.S. and other plants all over the world.

As far as the tons of savings in shipping expense by producing the ES 350 in the U.S. as oppose to Japan, does one think the savings will be passed onto the consumer (by lower prices) or the shareholders (by larger dividends)?

 

[QUOTE=Trexus;7934049
As far as the tons of savings in shipping expense by producing the ES 350 in the U.S. as oppose to Japan, does one think the savings will be passed onto the consumer (by lower prices) or the shareholders (by larger dividend)?[/QUOTE]

Not directly, but I do think it will keep them from having to decontent the ES so much to get the profit out of it they need.

 

I see your point and mostly agree, but on the other hand building in in the US allows for Toyota to save a lot of money from the yen conversion rate, and it on paper will allow Toyota to add more value and luxury to the ES, and decontent it less.

As for why they chose the US instead of their Canada plant, I think it may be due to taxes and perhaps incentives. Maybe Kentucky gave Toyota a huge incentive that Ontario, Canada could not match or even come close to.

I would have preferred to see the ES production in Canada as well, but we shall see what happens with the US produced ES. We can only hope Toyota will upgrade the luxury and interior of the car.

 

It was announced in spring and summer 2012 that production at both Toyota Motor Manufacturing Canada plants -- Woodstock and Cambridge, Ontario -- will be increasing with federal and provincial governments' support.

Source: Toyota's Canadian manufacturing operation to increase RAV4 volume

Source: Toyota to Expand Lexus Production in Canada

So, the Canadian plants just recently received government support for expansion and there is now no more room (for the moment) to add ES 350 production at either of the 2 Canadian plants.

I would like to see further expansion at the Woodstock plant to handle production of the new RAV4-based NX but that would be a few years off -- not until the mid-cycle change/facelift in 3 to 4 years time or the full model change in 5 to 7 years time at least -- as Toyota finds out what the demand will be for the new model.

 

Things have changed over the years.
I don't believe the Japanese auto worker today is like that of the 1986 movie Gung Ho.A Ron Howard good comedy with Michael Keaton.

Yes,it still is a feel good thing about having a vehicle built in Japan but I don't think there's much if any difference anymore.

 

I think there is an objective rating of each individual automative factory done by external third parties.

That should cut through the subjectivity and anecdoctal evidence. For example, Toyota's Tahara plant was supposedly rated by JD Powers to be the plant to have the lowest defect rate in the world. Incidentally, it produces the LS, GS and IS.

Not sure about its rating now....

 

The difference is not so much that Japanese companies have gone downhill in quality (though there is some evidence of cost-cutting) but that other companes (particularly GM and Chrysler) have improved so much, and are now, in some cases, giving the Japanese real competition.

As far as the thread-topic question goes, I see no need to cancel the ES. Simply make it more like it was 10-12 years ago, with the superb 4th-generation model. The main problem with today's ES is that it is no longer a true ES....the interior trim-quality has been somewhat downgraded, and the chassis/tires/suspension made too stiff. In other words, It is a now semi-sports sedan. The same holds true for the new Avalon's chassis, but, unlike the new ES, the new Avalon's interior, IMO, is a notable upgrade from the last one. Though I don't particularly care for the ride in either one, given the choice, I'd take the new Avalon over the ES.