Originally Posted By: MrHorspwer
Originally Posted By: PandaBear
Lexus is competing with BMW and Mercedes, already made in China and exporting from China. Lexus is banking on the reputation that it is made in Japan and reliability is excellent because of the "100% Japanese" reputation, rather than the brand image, design, style, handling, etc against the Germans.
Except they're not. Lexus is in no way competing with Audi, BMW, or MB in China. Of those three, MB sells the fewest vehicles... and it's still about four times what Lexus sells.
Lexus is about on par with Cadillac... but Cadillac has a significant plan that involves ambitious new products that are locally built.
Re-read the article and move away from the headline and on to the second, equally significant, reason given:
Quote:
“There’s too much quality risk in China to produce there,” Lexus International President Takashi Yamamoto said. “The company also still has to improve the brand’s awareness and standing among consumers.”
Takashi, whose background is in engineering, added that when these hurdles are overcome production of Lexus cars in China is likely, though he said this might take “several decades.”
Executive-speak for "there are not enough sales and the growth is too slow to justify the capital expenditure to begin production."
Not mentioned is China's lingering aversion to Japan. The Chinese have long memories, especially about what happened in WW2.
So what I'm getting from you is: MBZ and BMW are doing fine made in China and Lexus is not despite made in Japan / US.
Chinese Japanese rivalry doesn't explain why so many other Japanese brand being made in China (Toyota, Honda, Mitsubishi, etc) already.