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slideshow says they've "made the decision to start assembling Lexus brand cars in India, starting with the popular ES350 model" while thread title says they're considering it. which is it?
you don't need to be having 'a financial problem' in order to want to make more money.
sounds like a very good move for lexus!
You're right! But I'd wonder though about image vs. savings....one would think the brand image is more valuable.....
I haven't been following but it would be like BMW assembling the 3 series in Mexico. These countries can absolutely do anything anybody wants, esp. when state of the art factories are created...but again, the image suffers...
and the key word apparently is 'assembling', i.e., not manufacturing.
The plan for Lexus in not to manufacture in India but ship prefabricated parts from Japan for assembly at lower tariff fees. This would result in a more simple structure in the car making process, and with proper procedures and monitoring, quality control can be maintained.
What about those Takumi that do 'hand stitched dashes'? Do they do it after the car is off the line?
I personally know someone who works at the Ford plant off the QEW in the GTA. It takes 8 hours I believe to make one Edge (will double check). I believe every 5 minutes a new ES comes off the line is what it supposed to mean.
You're right! But I'd wonder though about image vs. savings....one would think the brand image is more valuable.....
I haven't been following but it would be like BMW assembling the 3 series in Mexico. These countries can absolutely do anything anybody wants, esp. when state of the art factories are created...but again, the image suffers...
Has Audi's image suffered by moving Q5 production to Mexico?
Well, when I did the Ford EcoSport review and pointed out the fact that it was made in India, there was a lot of griping here on the set about it....not from me, but from some others. But, now that we're talking about Lexus products being made in India, suddenly, that's now OK?
Well, when I did the Ford EcoSport review and pointed out the fact that it was made in India, there was a lot of griping here on the set about it....not from me, but from some others. But, now that we're talking about Lexus products being made in India, suddenly, that's now OK?
I don't believe the intent is to assemble those cars in India then ship them to North America for sales. The NA market for the ES would still be supplied by the Kentucky and Japanese lines. That's the difference between this and the EcoSport.
If Lexus does plan to send cars assembled in India to the US, then yes, people will be up in arms. There are already lots of CL posters who refuse to buy a North American built Lexus.
What about those Takumi that do 'hand stitched dashes'? Do they do it after the car is off the line?
What is being considered is assembly from "completely knocked down" (CKD) kits, not building of a new car from raw materials.
Think of a kit car. The car is (partially) built at the source (such as the Lexus plant in Japan) then taken apart and the knocked down parts are crated for shipment. At the destination, the parts are uncrated and the car reassembled.
CKD assembly is not familiar here in North America although Volvo had an assembly plant in Halifax, Nova Scotia, Canada from 1963 to 1998 that assembled Volvos from kits shipped from Sweden.
The benefits of CKD assembly include:
Avoiding import tariffs on complete product by shipping parts instead of the complete product. This was the reason for the Volvo plant.
The destination factory does not have to be a full automotive manufacturing line and so the workers do not have to be as highly skilled as in a normal assembly plant. This is beneficial in places such as Malaysia or India where the labour may be plentiful but they may have very little manufacturing skills.
Because the vehicle is only assembled at the destination (think of those plastic snap-together car or airplane models we played with as children), concerns about poor quality control are lessened.
In my opinion, the reasons why Toyota may be considering CKD assembly of Lexus ES models in India, despite the fact that Lexus only very recently started selling in India, may include:
Assembly by Indian labour is cheaper than assembly by Japanese labour. This would allow Toyota / Lexus to lower the price of an ES assembled in India.
I am speculating that India may be willing to pay for a factory and provide the labour, in order to learn the secrets of high-tech manufacturing from knowledge transfer. Toyota would be getting an assembly plant for very little up-front costs.
India may have trade agreements with neighbouring countries that allows for goods exported from India to be free of (or much lower) tariffs than equivalent goods shipped from Japan.
All of these factors would allow Lexus to export and sell ES models to more countries at lower prices.
Assembly Plants in India
In spite of this perceived reputation, many other manufacturers have been assembling cars in Indian plants, with Hyundai, Ford, Chevrolet, and Suzuki being a few. The plan for Lexus in not to manufacture in India but ship prefabricated parts from Japan for assembly at lower tariff fees. This would result in a more simple structure in the car making process, and with proper procedures and monitoring, quality control can be maintained.
03-08-18, 08:15 AM
Lexus Considering Assembly of ES Models in India
But I'd wonder though about image vs. savings....one would think the brand image is more valuable.....
