Toyota reshuffles U.S. production, ending Lexus ES output to make room for two new three-row electric SUVs
The automotive industry never stops moving, and the latest on Toyota proves it. The Japanese automaker is reportedly moving production of the next Lexus ES from the U.S. back to Japan. On the flip side, it’ll begin building two new electric SUVs, including one that’ll likely carry the Land Cruiser name, here in Kentucky.
More: Toyota’s Lineup Overhaul Could Include A Surprise Sedan And Electric Highlander
This shouldn’t come as a wild surprise because Toyota has hinted at an electric Land Cruiser for a few years. In addition, sedan sales are slowing in the States while crossovers and SUVs continue their trend of popularity. To that end, by focusing on building and selling SUVs in the States, rather than sedans, Toyota can also avoid tariffs on its most popular models.
EVs Based On Familiar Nameplates
According to a source familiar with the matter who spoke to Reuters, the upcoming EVs “will be based on the Land Cruiser and RAV4”. While the phrasing suggests they could be directly derived from those models, it’s also possible the source meant they may simply carry those names, even if the underlying vehicles differ.
The Land Cruiser Se concept, first shown in 2023, lines right up with an electrified version of the popluar off-roader. It was a sleek, three-row EV designed to complement the retro-inspired two-row Land Cruiser currently on sale here in the States as well as the larger 300 series model in overseas markets.
See: This Is The New Toyota FJ Cruiser You’ve Been Waiting For
Another, though less likely, candidate for the Land Cruiser name is the long-rumored compact SUV often referred to as the FJ Cruiser. Given its size, it doesn’t seem suited for a three-row layout. Regardless, reports suggest it could be offered with both electric and hybrid powertrains. Toyota teased a shadowy image of the model a couple of years ago and more recently filed patent images believed to show the production version.
RAV4 EV Could Be Key
The second model, described as a three-row RAV4-based electric SUV, may prove even more crucial for the brand’s strategy. The RAV4 is America’s third-best-selling vehicle so far this year. A family-sized EV positioned closer to the familiar RAV4 branding could give Toyota’s electric lineup the boost that the bZ4X hasn’t. If an electric RAV4 can be anywhere near as popular as the gas model, it’ll be a huge win.
Lexus Production Shifts
On the other hand, Toyota will shift production of the next-generation Lexus ES back to Japan, a move the company first hinted at in 2021. With tariffs in play, we’re not sure if the decision makes sense today, but it may also reflect Toyota reading the market and recognizing the continued decline of sedan sales. Meanwhile, production of the Lexus TX will stay in Indiana, where the same factory is also expected to increase output of the Grand Highlander.
Would you be interested in an electric RAV4 or Land Cruiser? Tell us your thoughts below!
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