Toyota Likely to Build Lexus ES Sedan in Kentucky

Toyota Motor Corp. is expected to announce on Friday that it will begin producing the Lexus ES luxury sedan in Georgetown, Ky., by mid-2015.

News reports say the Kentucky facility will take on much of the ES production currently handled by Toyota's factory in Kyushu, Japan. The sedan would be the first American-made Lexus model. The company makes the Lexus RX crossover at its plant in Cambridge, Ont.

The RX is the top-selling Lexus model in the U.S. at 95,400 units last year, followed by the ES with volume of 56,200 units.

The state of Kentucky said earlier this week that Toyota is eligible for a $147 million package of tax incentives to help expand the Georgetown facility. To qualify, the company must invest at least $531 million in the project.

Kentucky expects Toyota to prepare to launch a new model there in 2015 by boosting annual capacity by 50,000 units and hiring 750 additional employees.