Toyota 'to Make Electric SUVs at US Factory in Kentucky'

Toyota ‘to Make Electric SUVs at US Factory in Kentucky’

The world’s biggest carmaker, Toyota Motor, plans to start making two battery-powered sport utility vehicles at its US factory in Kentucky, according to a source who spoke to Reuters.

Under the plan, the auto giant will end production of a luxury Lexus brand model at the site.

The electric vehicles the Japanese automaker plans to build in Kentucky will be based on the RAV4 and the Land Cruiser, according to the person, who spoke on condition of anonymity because they were not authorised to speak publicly.

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The next-generation Lexus ES sedan, due next year, will be manufactured in Japan and exported to the US, the person said, adding the change is not related to US import tariffs.

Toyota declined to comment on its future product plans.

In the US, Toyota currently makes Lexus ES sedans at its Kentucky plant and Lexus TX sport utility vehicles at a facility in the state of Indiana.

On Tuesday, the Nikkei newspaper reported Toyota would consolidate production of Lexus brand cars in the US to a single location in the face of high tariffs imposed by the Trump administration.

In response to that report, Toyota said the information was not something announced by the company, adding that it continually reviews its production structure as part of efforts to make ever-better cars.