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Lexus says no to manufacturing cars in China due to quality concerns
Live Life Drive, 8 May '14

While major car brands such as Volkswagen, Audi, BMW, Mercedes-Benz, Ford and General Motors are strengthening their foothold in China by reinforcing their production operations in the country, Lexus has reportedly pulled out from taking a similar move.

Despite China's high tariff on imported cars, which makes it hard to generate sales volume in the country, the Toyota-owned luxury brand insists that their vehicles sold in China will be imported from Japan.

Tokuo Fukuichi, Toyota's Design Chief, said that the company focuses on quality over quantity.

Fukuichi told reporters that Lexus' customers would leave the brand if it encounters any problem concerning the quality of its cars, which is what customers seek in a Lexus.

Last year, Lexus only sold approximately one-fifth of BMW's sales and one-seventh of Audi's tally in China. "The German Three have a brand image that they have cultivated over the past century in their long history, but Lexus is not in people's minds like that yet," added Fukuichi, referring to Audi, BMW and Mercedes-Benz.

Currently, the only manufacturing plant outside of its home country is Canada, which was established since 2003. Although Japan still produces most Lexus cars, the carmaker would be starting production in its biggest market, the US, from 2015.

In the meantime, Lexus will continue to export their vehicles to China - the brand's second biggest market - in spite of their higher selling prices.