Toyota plans to manufacture two battery-electric sport utility vehicles (SUVs) at its Kentucky plant in the United States and will end production of the Lexus ES sedan at the same site, a person familiar with the matter told Reuters.
The new U.S.-made electric vehicles will be based on the RAV4 and Land Cruiser models, while the next-generation Lexus ES sedan, expected next year, will be produced in Japan and exported to the United States, the source added. The changes are not related to U.S. import tariffs, the source said.
Currently, Toyota manufactures Lexus ES sedans in Kentucky and Lexus TX SUVs at a separate Indiana facility.
The Nikkei newspaper had earlier reported that Toyota was consolidating U.S. Lexus production to a single location in response to past tariff pressures, but the automaker told Reuters the report did not reflect any official announcement.
The Kentucky plant is expected to play a key role in Toyota’s expansion of electrified vehicle production in North America, as the company increases its focus on battery-electric models to meet growing demand, Reuters reported.
