Large automakers starting up production facilities in China is a dramatically emerging trend as it allows locally sold cars to avoid China’s largest car import tariffs. However, one manufacturer, namely Lexus, has confirmed that it will not head down this road due to quality concerns.
The Japanese luxury arm of Toyota believes that by opening a production facility in China, it would be favouring quantity over quality and understandably, it doesn’t want to do that. By comparison, many manufacturers already produce cars in the booming Asian nation like Volkswagen, Mercedes-Benz, BMW and Audi among others.
When discussing the company’s decision, the head of Lexus Tokuo Fukuichi said, “The German Three have a brand image that they have cultivated over the past century in their long history, but Lexus is not in people’s minds like that yet.
“Customers would leave us if we have any problems with quality because that is what they are seeking in a Lexus.”
As it stands, Lexus currently produces its cars in Japan, Canada and from next year, will begin production in its largest market, the United States.