Lexus on China production – “too much quality risk”

Lexus on China production – “too much quality risk”

Premium Japanese brand Lexus feels that China is not quite there yet in terms of vehicle manufacturing. A unique case, as other automakers such as Audi, BMW and Mercedes-Benz, have all started manufacturing vehicles in that part of the world. The reason provided by Lexus is that Japan-made vehicles, were a guarantee of quality, Bloomberg reports.

For that, Lexus has to absorb pricey import taxes, and as such, most of its vehicles are priced higher than its competition in China. Takashi Yamamoto, executive vice president of Lexus International said, “there’s too much quality risk in China to produce there.” The executive, also an engineer for Toyota for 33 years now, added that the brand’s awareness and standing amongst consumers, was the main focus at the moment.

“When that difficulty is gone, maybe local production is likely to be launched in China, maybe several decades later,” Yamamoto indicated. The executive’s perceived view of China’s manufacturing quality however, is a disparity against data, which shows that China-made vehicles have improved over the years.

These improvements are said to be accredited to international automakers who have set up manufacturing plants in China. Knowledge-sharing and manufacturing processes are exchanged between these automakers and their Chinese JV partners. Analyst for J.D Power, Geoff Broderick said that more production line workers, increased automation, and standardised quality-control processes were key contributors to better quality.

“Chinese people, their history of building automobiles is rather short, so it’s so difficult to locally build a high-quality car there,” Yamamoto stated. That said, the Japanese brand holds a different perception of the Americans and Canadians. “They have a tradition, a history of building and manufacturing automobiles, so mentality-wise we have some common ground,” he said.

Lexus commenced production of the Lexus ES sedan in Kentucky, USA, last month together with another plant in Ontario, Canada. Both, are the only other production facilities that the brand has outside of Japan.

Yamamoto added that the brand could better control its prices and quality from home and through importing rather than manufacturing millions of vehicles in China. “If you shift to made-in-China, there could be some peripheral issues accompanied with this,” he concluded.

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Graham Chin

Having spent a number of years as a journalist for a local paper, a marketing executive for a popular German automotive brand and a copywriter, Graham, a true-blue Sarawakian, knew he had to take the leap back into the motoring scene - and so he did. To him, nothing’s better than cruising for hours along a scenic route, in a car that’s designed and built for that purpose.

 

Comments

  • sudonano (Member) on Nov 06, 2015 at 7:07 pm

    A bit of a cheap swipe, eh?

    But an aside, it’s just like our Made in Malaysia BMWs, Mercedes Benz and Volkswagens, it takes a few years before they perfect the quality, and once they do, it’s all good. Step into a Mercedes Benz or BMW produced today, no issues with fit and finish really.

    Like or Dislike: Thumb up 21 Thumb down 37
    • China anti-Japanese cars la

      Like or Dislike: Thumb up 13 Thumb down 1
    • Sam "Hailat" Loo on Nov 06, 2015 at 8:27 pm

      Wait until their warranty expires…

      Like or Dislike: Thumb up 4 Thumb down 2
    • Orange on Nov 07, 2015 at 8:57 am

      I disagree. My brother bought a locally assembled F10. The bonnet wouldn’t close properly at the dealership ( and it still doesn’t today), huge gaps in the dashboard trim pieces, the passenger door needs more force to close, the cover for the center brake light wasn’t installed properly, and there are deep scratches here and there where it was obvious they forced pieces in. Not exactly premium fit and finish…

      Like or Dislike: Thumb up 23 Thumb down 16
      • Apple on Nov 07, 2015 at 5:28 pm

        Then ask your brother to post here lah…nothing to do with you you umw sales man.

        Like or Dislike: Thumb up 16 Thumb down 41
        • Orange on Nov 07, 2015 at 9:53 pm

          Why must get my brother to post? And don’t group me with those butts pls.

          Like or Dislike: Thumb up 12 Thumb down 10
      • Unicorns exist after all on Nov 07, 2015 at 7:07 pm

        Riiiight… Such a bad condition car and your brother accepted it. Uhhuh. The things people write in the comments section.

        Like or Dislike: Thumb up 11 Thumb down 34
        • Orange on Nov 07, 2015 at 9:57 pm

          Just stating the facts. I don’t care that you don’t wanna believe it. He complained, but SC didn’t do much. Yeah, I know right? Can’t even post an opinion without all the typical Paultan comments pouring in.

          Like or Dislike: Thumb up 8 Thumb down 8
          • Unicorns exist after all on Nov 08, 2015 at 8:27 am

            The thing is nobody believes your story. It’s like one of those “brother in law’s neighbor’s friend’s colleague’s BMW got problems” kind of stories. Of course no one here thinks any car manufacturer is perfect, including BMW, but it is obvious yours is a typical made up one. Even second rate manufacturers wouldn’t let cars with scratches and gaps and doors not closing properly leave their warehouse if it potentially will harm their reputation, especially nowadays when every tiny mistake gets published on social media.

            Like or Dislike: Thumb up 11 Thumb down 22
          • Suka suka on Nov 08, 2015 at 9:31 am

            Weren’t those defects recorded at customer delivery inspection? If the sc couldn’t do much BMW malaysia certainly could have. But of course, no one could because this is something you simply made up. I don’t think you even know how a brand new car is delivered to customers.

            Like or Dislike: Thumb up 5 Thumb down 23
          • Of course you care if ppl don’t believe, thats why you posted it – to convince ppl.

            Like or Dislike: Thumb up 3 Thumb down 25
          • Orange on Nov 08, 2015 at 8:29 pm

            Sigh… Tough crowd. Not my job to convince you lot. Don’t believe done lah. Suddenly so many different people want to kepoh. Interesting.

            Like or Dislike: Thumb up 6 Thumb down 6
      • Seems like your family luck is bad.

        Like or Dislike: Thumb up 7 Thumb down 8
        • Orange on Nov 07, 2015 at 9:59 pm

          Nah, that just how the Malaysian automotive scene works. You never get enough car for what you pay for.

          Like or Dislike: Thumb up 8 Thumb down 6
          • Apple2 on Nov 08, 2015 at 12:09 pm

            Lucky you drive saga.you got no issue with your car. Your brother shall learn from you.

            Like or Dislike: Thumb up 6 Thumb down 21
          • Orange on Nov 08, 2015 at 8:33 pm

            My car oso got problem, man. Learn from me? How? I don’t think it’s physically possible for knowledge to directly translate to reliability. Baiki lu punya England dulu.

            Like or Dislike: Thumb up 3 Thumb down 3
      • Legoland stories on Nov 07, 2015 at 9:24 pm

        Orange, before posting such fairy tales next time please learn how CKD car parts are brought in and assembled. Where got force fitted items and trim gaps one lol you think the cars come in small pieces like Lego ka? If true, your brother must be quite an idiot (albeit a moneyed one) for accepting a brand new car in such a condition.

        Like or Dislike: Thumb up 11 Thumb down 33
        • Orange on Nov 08, 2015 at 9:18 am

          Wow, it’s like nobody believes a car – a man-made object – can be put together poorly, especially in Malaysia with our songlap culture and tidak apa attitude.

          Listen, even another Perodua we have, a car that’s also sold in Japan as a Daihatsu; a Japanese vehicle; cars stereotyped to be the pinnacle of quality was delivered with entire body panels that didn’t align properly, and a patch on the rear bumper where the paint just peeled off. Looked like they attached the bumper before the paint fully dried.

          We complained, both cars were looked at, and issues were resolved. Apa lagi? It’s just that with the BMW they couldn’t do much about the scratches and the bonnet, and my brother didn’t mind too much. It’s his business. I can’t force him to badger the SC for new plastic window frame trim because of some scuffs, and he seldom opens the bonnet anyway.

          And I don’t know what car you drive that’s so perfect but BMWs are made up of thousands of components, big and small. Newsflash, sometimes they aren’t fitted together that well.

          Like or Dislike: Thumb up 8 Thumb down 10
          • Apple3 on Nov 08, 2015 at 4:47 pm

            Hahaha….like what you said, your brother not even bothered and he hardly open bonnet. Why you worry so much? ……wonder how many believe your made story………hahhaha…scratches…big gap……

            Like or Dislike: Thumb up 6 Thumb down 22
          • Legoland stories on Nov 08, 2015 at 4:57 pm

            Fantastic story. Your family keeps buying defective cars it looks like. Buying a 350-420k car and accepting glaring defects. Funny lah you.

            Like or Dislike: Thumb up 4 Thumb down 21
          • Big boy on Nov 08, 2015 at 7:18 pm

            If course la any car can be defective. But for a bimmer the defects, if any, may manifest after some weeks or months. If you had said so maybe people could believe you. In your particular story it seems far fetched considering you claimed the defects were obvious right off the bat. Scratches. Gaps. Doors not closing. And your brother happily took it and the authorised dealer handing it over without worry of repercussions. A >350k car. Come on bro…

            Like or Dislike: Thumb up 4 Thumb down 3
          • Orange on Nov 08, 2015 at 8:41 pm

            What can I say? I’m thorough. Maybe you should check yours too. Just don’t cry like the kids at Legoland when you find something.

            Like or Dislike: Thumb up 3 Thumb down 6
          • Orange on Nov 09, 2015 at 9:15 am

            @Big Boy: I never said these problems were apparent on collection. Brains sikit boleh? What’s with these anon handles anyway?

            Like or Dislike: Thumb up 1 Thumb down 3
      • Orange on Nov 08, 2015 at 9:01 pm

        Looks like someone’s still butthurt about something from a while ago. I oso can post under multiple names. Same crap English all round. You know who you are. Stop kidding yourself.

        Like or Dislike: Thumb up 3 Thumb down 5
        • Big boy on Nov 09, 2015 at 9:40 am

          You created a typical ‘so and so car manufacturer is shite’ story then tried to backpedal when it obviously doesn’t quite tally with reality. Enough of you trolls.

          Like or Dislike: Thumb up 5 Thumb down 4
          • Orange on Nov 09, 2015 at 7:21 pm

            I merely cautioned you lot to be wary of defects as they can be found in even the most unlikely of vehicles. I think you’ve been brainwashed by all the shite-slinging going on in the Paultan comments that you either can’t read or are unable to use common sense. Backpedal? Where? I said very clearly the SC took the car in to be looked at. They fixed most of the issues under warranty. They did their job, although I think they could’ve done better. Nowhere did I curse BMW like they’re the devil incarnate. Go check.

            Tally with reality? Let me ask you this: Who gladly accept a defective vehicle? Nobody, that’s who, just in case you couldn’t figure that out. The problems got noticed a while after, obviously, just in case you didn’t pick that up either.

            Here, let me use an example because it’s obvious I’m dealing with the mentally challenged: Bob meets Jim for the first time. Bob doesn’t automatically find out that Jim likes horror movies, Japanese food and plans to retire in Sarawak someday, through osmosis via a handshake. No, Bob wouldn’t know unless he asked Jim these things specifically.

            And unless you’re the type that spends hours slamming doors and testing every media function on your new car before driving off, you wouldn’t notice any problems either.

            That enough of an answer for you? Puas? Marah? Maybe you should just boycott the Internet. After all, anything on here could be a fairytale.

            Like or Dislike: Thumb up 2 Thumb down 3
          • Apple4 on Nov 09, 2015 at 11:28 pm

            Orange is just a small kid, forgive him lah. Still tak Malu and want to defence his fake story.

            Like or Dislike: Thumb up 7 Thumb down 2
          • Orange on Nov 10, 2015 at 8:11 am

            @Apple4: That’s your best response? That I’m a kid and what happened was a lie again? Wah! Debater of the year! Come I clap for you.

            Only kid here is the one still hiding behind an anonymous handle, pretending to be different people even though this post’s a few days old already and nobody else comes on here. Didn’t even bother to point out which part of it all didn’t ‘tally’ either.

            Guess I win then seeing as you can’t disprove anything. It’s okay to cry. It’s the Internet. Nobody to see you scream and throw things. It’s a public holiday too. Maybe you can visit Legoland with all the other kids.

            Like or Dislike: Thumb up 0 Thumb down 0
          • Budakkecil on Nov 10, 2015 at 10:42 pm

            Budak kecil nak tipu lagi? Don’t lie kid, work hard, one day you can own a vios and get two free ticket to wonderland.

            Like or Dislike: Thumb up 0 Thumb down 0
    • carazy on Nov 09, 2015 at 7:20 am

      U buy luxury for quality, not for cheep money. If wanna cheep car go for toyota. I really offended if luxury car maker manufactured their car in China, its shows that their just care abt money not quality

      Like or Dislike: Thumb up 0 Thumb down 1
  • Same L0rrrr on Nov 06, 2015 at 7:17 pm

    Again, you won’t go wrong with sushi cars. True rich ppl opt for Lexus while Mercedes, BMW (especially used units) are for rich-wannabe.

    Like or Dislike: Thumb up 8 Thumb down 28
    • Lexus cars are wannabe luxury items. The buyers quickly discover that after paying so much for a lexus, they are not seen with as high a regard as the german marques. Then they are stuck with the cars.

      Like or Dislike: Thumb up 14 Thumb down 4
    • Heng Lee on Nov 07, 2015 at 6:42 pm

      I fully agree! Lexus cars are designed for a maximum speed of 110km/h and therefore much more safe than BMW and Mercedes!

      True rich people use their helicopters to cover distances >50km and use cars only where a top speed of 110km/h is sufficient.

      Like or Dislike: Thumb up 5 Thumb down 3
    • Duson on Nov 08, 2015 at 9:34 am

      Used bmw and mercs people still want. Nobody wants to even touch used lexus lol

      Like or Dislike: Thumb up 2 Thumb down 0
    • iiAmgPackage on Nov 08, 2015 at 6:41 pm

      What Lexus model? I thought they were assorted flavoured crackers/biscuits that you dip in with tea. Most people don’t know what is the Lexus you’re talking about unless it’s a biscuit.

      Like or Dislike: Thumb up 0 Thumb down 1
  • skatax on Nov 06, 2015 at 8:56 pm

    im not seeing the difference here. i assume that he’s claiming countries like china lacks ‘human touch’. but if a component of a car is flawed, the car will still rattle no matter how you assemble it.

    this guy is either stupid or racist. you’re manufacturing mass produced cars, not some custom exotics.

    Like or Dislike: Thumb up 7 Thumb down 4
  • Teksi Kangkung Lembik on Nov 06, 2015 at 10:34 pm

    mau bayar murah, mau barang baik.
    Macam mana boss??

    Like or Dislike: Thumb up 2 Thumb down 2
  • Just an excuse. The real reason its they dun wan China to come out with clone thats 10X cheaper. With interchangeable parts too.

    Like or Dislike: Thumb up 17 Thumb down 2
    • Duson on Nov 08, 2015 at 9:38 am

      As if anyone wants to clonea lexus lolol

      Like or Dislike: Thumb up 0 Thumb down 0
    • Low Budget on Nov 08, 2015 at 10:35 am

      The most sensible comment. China can clone any products not just cars if any foreign companies set up factories there.

      Like or Dislike: Thumb up 2 Thumb down 0
  • That’s why i never trust Toyota is reliable

    Like or Dislike: Thumb up 4 Thumb down 9
  • Head Hunter on Nov 07, 2015 at 4:27 am

    I find the new Lexus line up to be quite good in terms of fit and finish only to be bettered by the 3 pointed star. The BMW has the comfort but not up to Lexus’ interior quality. I think this is more of a heritage issue, rather than actual business decision but I think it is good to keep it Made in Japan as an assurance that what we get is the best that Japan can offer. Ever heard of the substandard Aston Martin’s brake pedals made by a Chinese company? That’s a quality issue that they want to avoid.

    Like or Dislike: Thumb up 17 Thumb down 1
  • Leafable on Nov 07, 2015 at 8:57 am

    The old say always right: You get what you pay for.

    Like or Dislike: Thumb up 6 Thumb down 3
    • dugongx on Nov 08, 2015 at 1:56 am

      totally wrong! with toyota, you pay super high price but get tin kosong coffin so how?

      Like or Dislike: Thumb up 10 Thumb down 2
      • Low Budget on Nov 08, 2015 at 10:37 am

        At least the Toyota owners in Malaysia gain bragging rights against Proton owners.

        Like or Dislike: Thumb up 0 Thumb down 3
        • You mean bragging rights to be buried in their cars? I give them that at least. They got a 2 in 1 offer, car & coffin.

          Like or Dislike: Thumb up 3 Thumb down 0
  • dodgeviper88 on Nov 07, 2015 at 9:10 am

    I like this uncompromising attitude adopted by Lexus. While others has join the herd, Lexus’ quality and service is unparalleled in the automobile industry and I hope it will continue to be. Unlike many luxury car brands, Lexus focus on the finer things in life with understated luxury. Sit in a Lexus and you’ll understand

    Like or Dislike: Thumb up 15 Thumb down 5
  • BeemerFreak on Nov 07, 2015 at 9:45 am

    Bloody Japanese, after all these years still look down on the Chinese. Even Boeing and Airbus is being assembled in China, what the hell are you talking about lack of quality. If any lack of quality in the industry it is coming from the Japanese now, heard of Takata??

    Like or Dislike: Thumb up 17 Thumb down 17
  • Sam Loo ( ori1 ) on Nov 07, 2015 at 11:25 am

    All my 3 Lexus and my 4th one got no quality issue. Pity those kimchi junk who cant even trade in. Beg me and cry i give you RM 10k

    Like or Dislike: Thumb up 7 Thumb down 15
    • Bristol on Nov 07, 2015 at 2:21 pm

      No matter u said how good is Toyota or Lexus, i still prefer Hyundai and Kia

      Like or Dislike: Thumb up 8 Thumb down 4
      • Sam Loo ( ori1 ) on Nov 07, 2015 at 5:26 pm

        You earn less than RM6kper month like me, you better work harder to own at least a sushi.

        Like or Dislike: Thumb up 1 Thumb down 7
    • dugongx on Nov 08, 2015 at 1:58 am

      Lexus RV even worse. bough LS460 for 800k and after 5 yrs begging to sell at 90k also nobody wants

      Like or Dislike: Thumb up 7 Thumb down 1
  • BOYRACER on Nov 07, 2015 at 11:36 am

    Total nonsense.It is not where you make them.It is all about quality control.Doesn’t matter whether you start making cars 50 years ago or 10 years ago.In fact you even can build a plant in Timbuktoo and with good quality control there should be no problem.

    Like or Dislike: Thumb up 7 Thumb down 7
  • its not about the quality of materials used for the cars but how they fit and finish it. these two skills where japanese are better even with their germans counterpart.
    yes the germans may use better quality materials but japanese cars tend to last longer..

    Like or Dislike: Thumb up 7 Thumb down 6
    • Heng Lee on Nov 07, 2015 at 6:46 pm

      Exactly! If a rich man plans to use his luxury car for more than 15 years, he will go for Lexus!

      Like or Dislike: Thumb up 1 Thumb down 4
      • Abon Gunawan on Nov 07, 2015 at 8:29 pm

        A better built car will maintain its quality for longer time no matter how many ownership. Shallow minded.

        Like or Dislike: Thumb up 1 Thumb down 0
      • Low Budget on Nov 08, 2015 at 10:40 am

        Rich men want their car to last 15 years? No lah, they change their car once every 2-3 rears.

        Like or Dislike: Thumb up 1 Thumb down 0
  • I dont think it’s so much the production line and its workers, perhaps he is talking about the entire manufacturing ecosystem as a whole which includes local part suppliers that may not be up to par which is the more important issue

    Bear in mind that that the parts supply chain in Malaysia and Thailand are at a very mature stage and we have some world class part suppliers that supply the most demanding car makers in the world (Bentley, Ferrari, Volvo, Lexus etc)..it’s just that they are not customer facing brands and we don’t know about them unless you happen to be speaking or doing business with stakeholders of that industry

    We that being said, I must say that the Lexus top man is a little crtical of the chinese as they have come a long way in a short time..it was obvious when he included ‘Canadians as storied car builders’….. Maybe historical issues has also a part to play here..

    Like or Dislike: Thumb up 1 Thumb down 1
  • alldisc on Nov 07, 2015 at 12:39 pm

    Lexus has a high reputation in build quality, in fact for the past 15 years it is is often in top three among car makers. To confirm, look at JD power website.

    Should Lexus often score between 95-98% in build quality and problem parts in 100 cars (PP100), the risk it is taking when assembling in China could be lowered to perhaps 92%. Or 88%.

    Enough to ruin it’s image of making high quality luxury cars. Recovery period? Anything between 10-30 years.

    Lexus is playing its card smart.

    Like or Dislike: Thumb up 16 Thumb down 7
    • Heng Lee on Nov 07, 2015 at 6:49 pm

      PROTON also posted the greatest improvement in customer satisfaction from the recent survey conducted by JD Power, which reiterates and underscores PROTON’s commitment to quality.

      It’s a good sign that Lexus is mentioned at JD Power too.

      Like or Dislike: Thumb up 4 Thumb down 4
      • Duson on Nov 08, 2015 at 9:41 am

        Proton setaraf dgn lexus yo

        Like or Dislike: Thumb up 1 Thumb down 2
      • alldisc on Nov 08, 2015 at 2:37 pm

        Proton is not listed in UK and US JD power survey, I feel sorry for you not knowing a term called international.

        Like or Dislike: Thumb up 4 Thumb down 1
        • Heng Lee on Nov 08, 2015 at 9:28 pm

          As I don’t live in the UK: Why shall I care what UK citizens think about Lexus?

          Do they have tropical climate in the UK as we have? Do you send your Lexus to the UK for service?

          Like or Dislike: Thumb up 1 Thumb down 4
          • alldisc on Nov 09, 2015 at 2:40 pm

            no. u may still live in your kampung. i dont bother.

            Like or Dislike: Thumb up 1 Thumb down 0
  • Salambangi on Nov 07, 2015 at 1:19 pm

    Deat Paultan readers

    That’san endorsement of the called CHINESE made ‘quality’. Make fast money maa…

    Like or Dislike: Thumb up 5 Thumb down 1
  • Commenter on Nov 07, 2015 at 3:05 pm

    In Malaysia, Toyota’s at risk of losing loyal customer.

    Like or Dislike: Thumb up 8 Thumb down 4
  • tokmoh. on Nov 07, 2015 at 11:53 pm

    Says the country that can’t make airbags properly…

    I’d rather trust China car when it comes to safety. They make the world’s safest car after all ( ͡° ͜ʖ ͡°)

    Like or Dislike: Thumb up 2 Thumb down 5
 

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