- Toyota plans to consolidate two US Lexus plants into a single facility, Nikkei reports.
- The ES sedan, currently made in Kentucky, will move to Japan starting next year.
- Lexus will still build the TX SUV at its Indiana facility and other models in Canada.
America is the biggest market for Toyota’s Lexus brand, but that’s not enough to prevent the company from shutting down Lexus production at one of its two US plants, Japanese media reports.
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Related: Lexus Just Introduced A Far More Affordable Plug-In Hybrid
Lexus currently builds the ES mid-size sedan in Kentucky and the TX SUV in Indiana, but will soon consolidate production in a single site. In the factory face-off, Kentucky came off worst, and Lexus production will end, though Toyota will still make its own cars there.
The next-generation Lexus ES, revealed a few months ago and due to hit showrooms early next year, will reportedly be built in Japan.
A Shift in Strategy
That’s according to Nikkei, though neither Lexus nor Toyota has officially confirmed the move. The report says Toyota came up with the new strategy in response to tariffs imposed by the Trump administration on imports to the US. Lexus will focus on building big-selling hybrid vehicles in its remaining American plant in Indiana, while moving other luxury builds to Japan.
The shift reportedly won’t affect Lexus’s activities in Canada, where it currently builds both the RX and NX SUVs. Lexus also has two sites in Japan. The Tahara, Aichi, plant is five times the size of the soon-to-close Kentucky facility and makes the GX, IS, LS, and NX. The Motomachi site, also in Aichi, makes the LC, and a Kyushu base in Fukuoka produces the UX, NX, ES, and RX.
Updates on the IS
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Lexus this week unveiled a third facelift for its Japanese-built IS compact sedan, which dates to 2013, making it one of the oldest cars on sale. The update brings a sharper nose, a new set of 19-inch alloy wheels, and a revised interior that ditches the controversial touchpad controller and CD player.
A new type of electric power steering and fresh dampers promise handling improvements, but the powertrain setup is likely to be carried over. If that’s the case, you’re looking at a choice of a 2.5-liter four in the IS 300h hybrid pumping out a genteel 217 hp (162 kW / 220 PS), or a non-hybrid IS 350 with a 314 hp (214 kW / 318 PS) 3.5-liter V6 that’s less green but should deliver more grins.
The TX Lineup
The US-built TX (seen below) got a $500 price increase for 2026 and now starts at $57,090 in 275 hp (279 PS) gas form, or $2,300 with the available four-cylinder hybrid powertrain that generates 366 hp (371 PS). The 404 hp (410 PS) V6 hybrid 500h kicks off at $70,610, but a flagship TX550h+ Luxury will set you back $80,960.
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