Toyota Motor Corporation will consolidate its two Lexus manufacturing plants in the United States into one, in response to the high tariff regime under US President Donald Trump, Nikkei reported Tuesday. The strategic move is aimed at bolstering hybrid production in the US while shifting some luxury Lexus output back to Japan.
Currently, Toyota produces the Lexus ES sedan in Kentucky and the Lexus TX SUV in Indiana. According to the report, production of the ES will cease once current orders are fulfilled, with the next-generation ES to be exported from Japan instead. After the transition, Toyota’s Indiana plant will remain the sole Lexus production facility in the US.
Toyota will, however, continue producing two Lexus models at its Canadian facility. A spokesperson for Toyota’s US unit said, “We select appropriate production sites in accordance with price ranges.”
The move underscores how tariffs are reshaping global supply chains for automakers, forcing companies like Toyota to adjust their production footprint to manage costs and maintain competitiveness in the luxury car segment.
