Toyota Mulls U.S. Lexus Production

Toyota Motor Corp. is studying whether to shift some production of its Lexus luxury vehicles to the U.S. from Japan because of the strong yen, according to the company's American sales chief Jim Lentz.

Lentz tells the Management Briefing Seminars in northern Michigan that the Lexus ES midsize sedan would be a likely candidate because it is a strong seller in the U.S. He says Toyota is assessing the dollar-yen relationship and conditions in the American car market.

Lentz adds that several other factors make U.S. Lexus production attractive: the company's growing engineering capabilities in North America and its strategy of building vehicles in the region where they are sold. Currently, 70% of the vehicles Toyota sells in North America also are made there.