TOKYO (Reuters) – Toyota Motor will consolidate production of its luxury Lexus brand cars in the United States into a single location from two in the face of high tariffs imposed by the Trump administration, the Nikkei reported on Tuesday.
The move is aimed at strengthening U.S. production of petrol-electric hybrid vehicles while shifting some production of high-end Lexus cars to Japan, according to the report.
Toyota said the information was not something announced by the company, adding that it was constantly considering how to optimise its production structure as part of its efforts to make ever-better cars.
Toyota currently makes Lexus ES sedans at a plant in the state of Kentucky and Lexus TX sport utility vehicles at a site in Indiana.
After the consolidation, Toyota will end production of Lexus cars at the Kentucky plant, according to Nikkei.
(Reporting by Mariko Katsumura and Daniel Leussink; Editing by Kirsten Donovan and Himani Sarkar)
