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Construction of Lexus' first US assembly line underway

The ES is Lexus' top-selling sedan, but the Japanese luxury marque has never manufactured it outside of Japan. In fact, Lexus has never made any cars in the United States, one of its largest markets worldwide. But that's about to change.
Yesterday, construction began in Georgetown, Kentucky, on the first Lexus assembly line in America, the first concrete (or steel) step in a $360-million expansion of Toyota's plant in the Bluegrass state that will create 750 new jobs. The expansion was announced last April by chief executive Akio Toyoda at the New York Auto Show.
Once the new assembly line gets online in the fall of next year, Toyota plans on building some 50,000 units of the ES each year. Lexus sold a record 72,581 examples of the ES in the United States last year - 30 percent more than the previous year - so Lexus will either have to import some more from overseas or leave some buyers disappointed.

Lexus LX to get diesel engine?

Australian consumers appear poised to get another diesel-burning luxury SUV in the near future, and word is it's coming from Lexus, of all automakers. Sean Hanley, chief executive of the company's branch in Oz, recently told Aussie website Drive that he's "pretty confident" that the new engine for the LX is getting the green light.
Like in the US, the LX in Australia is currently only offered with a 5.7-liter, gasoline-burning V8. However, sales of the big SUV are presently minuscule Down Under, with Drive reporting just 153 LX570s sold in all of Oz last year. Hanley is negotiating with Japan to get the new diesel in hopes of boosting flagging sales. If his efforts are successful, it would be the first diesel engine offered in a Lexus there. Hanley didn't specify exactly which mill the SUV would get. However, given the LX's close relationship with Toyota Land Cruiser, the diesel 4.5-liter twin-turbo V8 already available in the Toyota in markets outside of North America seems like a natural choice.
Don't expect the variant to be hopping across the Pacific, though. Lexus spokesperson Allison Takahashi tells Autoblog she has heard "nothing" about an oil-burning LX coming to the US. That's not a huge surprise, though, because neither Toyota nor Lexus offer any diesels in their lineups today. Also, Lexus has only sold 1,981 LX570s through June, which only placed it ahead of the LFA supercar in the brand's sales. It's probably just not worth certifying the engine for such a low-volume model.

Toyota offered $146.5 million to build Lexus ES in Kentucky

Toyota posted a media advisory yesterday saying that Akio Toyoda, president of Toyota, and Jim Lentz, CEO of Toyota North America, would be making a production announcement tomorrow in New York City, and Automotive News reports that the automaker will be announcing a plan to domestically produce the Lexus ES. According to the report, numerous plants are competing to build the ES in North America, and the State of Kentucky has offered the automaker up to $146.5 million to build the luxury sedan at the Georgetown, KY assembly plant.
If Georgetown gets the ES, which has been built in Japan since its debut in 1989, it would be built alongside the Toyota Camry, which is somewhat ironic since in our review of the 2013 Lexus ES350, we wrote that this ES finally says "goodbye to its Camry roots." In order to get the whole amount offered, the article states that Toyota would have to invest $531.2 million and hire 570 full-time workers at the plant, which doesn't sound all that unreasonable since the plant would require an additional 50,000 units of annual production, not to mention the fact that the Georgetown facility is already at its capacity for building the Camry.