business

Toyota debates building Lexus cars in China

20 Comments
By Norihiko Shirouzu

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"...long opposed to producing its premium Lexus cars in China because of concerns over quality..." Guess the powers that opposed are retiring and the newbies are much more concerned about profitability rather than quality. I don't have facts or statistics or otherwise a well-informed mind but that's not stopping me from feeling the time still isn't right for Toyota to build locally. Do the majority of Chinese feel "Made in China" is a great incentive (trusted and safe)? Whether it's food, diapers or vehicles, do the Chinese consumers love the "Made in China" label?

2 ( +3 / -1 )

Well, I didn't buy the BMW made in South Africa so you can guess what I'd think of a Lexus made in China....

4 ( +4 / -0 )

Hasn't the Japan learned from its own mistakes when making deals with china only ends up costing more and losing the technology as well.  The will take the Lexus Toyota model and technology, give a go for about 1 to 2 yrs then change it to REXUS made by Doyota, and then like many South Koreans, and other countries before lose in the end go back to their country of origin with their tails between their legs and nothing to show for it, except the short end of the stick and people who lost their jobs as a result. This is a bad business model and plan.

8 ( +8 / -0 )

"a response to criticism that Chinese companies have been largely allowed to invest freely in outside markets while Beijing limits foreign firms' access to the world's second-largest economy."

And that's criticism that most people first started hearing after Trump came to office. Come on, admit it. LOL.

The free-trading globalists have no problem with the exploitative situation. Which is why free trade and globalization need to be reigned in, reviewed and revamped in ways that advance our respective national interests.

2 ( +3 / -1 )

So much of this article demonstrates the issues with China's trade practice. I am glad the world is finally realizing that there is so much that is fundamentally wrong with how China wants to play the trade game.

1 ( +1 / -0 )

More money leaving Japan. The Japanese government give all these large corporations tax cuts and all kinds of privileges only to have them move their manufacturing offshore. And then, they wonder why the GDP is wallowing in the mud. They are idiots! Seriously!

2 ( +2 / -0 )

It’s a free country so Toyota can invest in another country to make luxury cars. But who would want to buy Lexus cars made in China? Certainly not Chinese consumers. And when things go bad, the car manufacturer should not expect taxpayers’ money to bail them out.

1 ( +1 / -0 )

Just tell me how much money did Toyota lose in the past 30 years in Chinese Market ? If you debate another 30 years, I am afraid that there would be no more Toyota to be debated.

1 ( +1 / -0 )

Chinese Market will be at least 2 time bigger than any other single Market on the planet of earth, in 10 years. Besides, not only Toyota would lose the single biggest market in the universe, Toyota would have to cease all productions if there is another disaster hit in Japan, which will, scientifically speaking, almost certainly happen. Therefore the Northeast China should be the base for Toyota and all other Japanese productions, at least as diversity. Japan will diminish, unless integrates with China, lord doesn't lie.

-1 ( +0 / -1 )

Don't do it. They'll steal your technology and start stoning your factory when political tensions erupt.

4 ( +4 / -0 )

Speed, do you know that you don't know Toyota ? The top secret of Toyota's hybrid car is false assumption. Toyota open all its patents for public use. Do you know why ? These days, it is very expensive to develop technologies, and only big companies can do that. If they can't market them right way, they lose. That is why a market is so important for big guys like Toyota. By the way, tesla also open its all patents for electrical car. The world is more open, not more secret. So stop pretending that you know something.

-1 ( +0 / -1 )

No surprise. Would make sense. As long as Toyota make it abundantly clear that the cars made in China are for the Chinese market only. If word gets out Lexus cars turning up in Europe are made in China their brand is sunk. Lexus is a brand competing with the likes of BMW etc.

0 ( +0 / -0 )

Akie - Just tell me how much money did Toyota lose in the past 30 years in Chinese Market ? If you debate another 30 years, I am afraid that there would be no more Toyota to be debated.

Did you actually read the article? You’ve totally missed the point. They are moving production because it is cheaper. This will result in an increase in jobs and an increase in investment for China. Whereas, it will result in a loss of jobs and investment in Japan. Focus your anger at the Toyota and the J-gov. It’s not China’s fault Toyota can’t make money in Japan.

0 ( +0 / -0 )

A Chinese made Lexus? The sound alone makes me feel queasy.

1 ( +1 / -0 )

Lexus to be Lechinux is much sooner than late to Toyota.

0 ( +0 / -0 )

Toyota did the same over here in Europe , the result is dropping the well known quality by the numbers , most Toyotas have a Citroen engine and european electronics in it and other french made items.

I drive Toyota for more than 45 years , i wanted to make the step to Lexus near future , but after reading this

im sure this is not going to happen !

0 ( +0 / -0 )

Do the hustle, what are good for jobs and investment if you don't have a market ? You just still, and perhap never will, get it. China is leading in electrical cars. Toyota actually made strategic mistake when it believed that hybrid car is better. You reap what you sow, if you sow nothing then if get nothing. Japanese are small minded, no doubt about that. All the advantages of Japanese technologies are disappearing rapidly before making any profits because Japan limits its technology transfer when it still has values. There is no free market, if you want it, you pay, with money or with technology, that is the fundamental law of economy. Japan has to pay for US market, or will be tariffed, as simple as that.

-1 ( +0 / -1 )

Why? So they can steal our IP more!

1 ( +1 / -0 )

China looking forward to stealing more ideas and technology no doubt.

0 ( +0 / -0 )

“follow-wind” - literal translation, but “tail-wind” may be what you’re looking for.

0 ( +0 / -0 )

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