With the increasing strength of Yen, Japanese automakers are finding it harder to make a profit on vehicles built in Japan. The situation is becoming so bad, that Toyota is thinking about making a drastic change; move Lexus production.
Fortune reports that Toyota CEO, Akio Toyoda wants more compact Toyota models, the least profitable models in its lineup to be produced outside of Japan. Toyoda acknowledges that Lexus models may follow.
But where would they head to? Most likely to the US where most of Lexus models are sold.
However, there is a problem. Lexus’ U.S. chief Mark Templin said Toyota's "pride," which stems from manufacturing its most prestigious models in its home country, would be difficult to overcome. Templin also said the decision is tough and would be decided by execs in Japan.