Rumor: Lexus to start building some cars in Germany?

Michael Gloss, the economic minister of Germany has recently talked in public about an inquiry of Toyota about the possibility of assembling Lexus models in Eastern Germany. Two reasons would justify such a decision:

- Lexus is not a major seller in Europe. This is slowly changing with the introduction of the IS 220d which is a wonderful diesel (400 lbft of torque from a 2.2 litre engine !), but the headquarters are not happy with the pace. Europeans tend to buy vehicles built in Europe (the Toyota Yaris, Avensis and Aygo are not only designed for Europe, but they are all built there and are pretty successful in their respective segments).

- Eastern Germany is extremely famous for its quality. Porsche builds the Cayenne, VW the Phaeton and Bentley the Continental Flying Spur in Eastern Germany, while BMW is assembling volume models there. One must also remember that this is the home of the world famous Lange & Söhne watch manufaktur, adding to the prestige of the region.

Germany, the largest national market of Europe in terms of volume would certainly be more interested in buying a luxury vehicle built by German workers. What a twist for German-phobics !

Anyone interested in building Hispano-Suiza vehicles in Estonia ? -:)

TF

Dayton - 4/7/2006 3:27:33 PM

+1 Boost

Hey j, why would we be peeing in our pants? Lexus just admitted that Germany is better known for quality. <br>
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Do you get it? LEXUS ADMITTED THAT GERMANY IS KNOWN FOR HIGHER QUALITY! <br>

robinpp - 4/7/2006 3:47:00 PM

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Yeah, higher quality... within Europe. Which other country in the Old Continent would be better? UK? (nope, remember those problem-laden Jaguars, LR's and even RR's) France? Ha!... they're learning from the japs (Renault from Nissan, PSA from Toyota) Italy? Even their high-ticket supercars are shamefully problematic... who else?... Maybe the Czechs, they're kicking butt with Skoda in quality surveys over the Continent (though Skoda is part of VW AG).<br>
The Germans "appear" to make quality things, but quality refers to how something is well made, and better-made things should perform for a longer period with the fewer deffects... does that sound like anything made by MB, BMW or VW AG in the present or the past?<br>
I think not.

Dayton - 4/7/2006 8:45:31 PM

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I agree this is not a direct quote from Toyota. Even though it is not said in so many words, it must mean something that they will begin building cars in Germany, doesn't it?

Hyundai - 4/8/2006 12:39:01 PM

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You are 100% correct in everything you said. I wouldn't be able to add more!

Hyundai - 4/8/2006 10:15:18 PM

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I understand where you are comming from. A lot of BMW fanboys talk about how Europeans like the sticks so therefore no stick here means the IS 350 is a crap car, etc. But, what BMW530i means is that Lexus needs to offer more variety in Europe.

The product is great, and personally I love the IS. My ideal car would be the IS 350.

However, the set-back Lexus may be facing in Europe is that it needs to simply offer lower trims to make happy luxury car buyers that may want cloth seats, but keep the rest of the car upscale (or not).

There are a lot of cloth upholstered BMWs and MB in Europe. If Lexus wants to be an option to those cars, then it should make options that are friendly to those type of buyers.

Hyundai - 4/8/2006 10:16:27 PM

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You cannot get any RWD Toyota sedans!.... only in Japan.

:)

dblo7 - 4/12/2006 1:00:46 PM

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I like Toyota's strategy. Build cars in the competitor's domain (i.e. US and Germany). It creates the illusion that it is more of a domestic auto that employs local workers and creates jobs. Besides openning factories nearly anywhere but Japan is cheaper.

Toyota management has done an excellent job and if it stays on course will be the #1 auto maker.

BM3W - 4/12/2006 2:18:42 PM

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It's a start but by no means will this be an easy task for Lexus to become the #1 luxury car maker in the World. MB, BMW, and Audi are firmly embedded in Europe. The only reason Lexus is well establish here in the states is because American luxury car markers where asleep at the wheel. Does anyone think MB, BMW or Audi is not taking care of business at home?