Toyota posted a media advisory yesterday saying that Akio Toyoda, president of Toyota, and Jim Lentz, CEO of Toyota North America, would be making a production announcement tomorrow in New York City, and Automotive News reports that the automaker will be announcing a plan to domestically produce the Lexus ES. According to the report, numerous plants are competing to build the ES in North America, and the State of Kentucky has offered the automaker up to $146.5 million to build the luxury sedan at the Georgetown, KY assembly plant.

If Georgetown gets the ES, which has been built in Japan since its debut in 1989, it would be built alongside the Toyota Camry, which is somewhat ironic since in our review of the 2013 Lexus ES350, we wrote that this ES finally says "goodbye to its Camry roots." In order to get the whole amount offered, the article states that Toyota would have to invest $531.2 million and hire 570 full-time workers at the plant, which doesn't sound all that unreasonable since the plant would require an additional 50,000 units of annual production, not to mention the fact that the Georgetown facility is already at its capacity for building the Camry.


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  • 65 Comments
      raughle1
      • 1 Year Ago
      Toyota has *already* decided to build this car in the U.S. based on global economic factors that have zero to do with state tax incentives (as is usually the case in these types of situations). They're just trying to figure out where to set up shop. What these kinds of local incentives do is attempt to direct the jobs to one state at the expense of another state. Which is why every state (quite rationally) now competes with every other state to see who can give away the most. If I were in charge in Kentucky I'd probably do the same. It's a classic race to the bottom.
      • 1 Year Ago
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        MAX
        • 1 Year Ago
        Japanese taxpayers have the highest debt per capita in the world from buying down the yen for decades to subvert the so-called "free" market. So called American conservatives are useful idiots for Asian socialism. Lenin was right the communists would sell the rope for capitalists to hang themselves. Probably sold out of WalMart. http://www.nbcnews.com/business/japan-tops-list-countries-deepest-debt-1C7100630
          • 1 Year Ago
          @MAX
          [blocked]
      gop.hates.america
      • 1 Year Ago
      Glad to see republican trolls trying to justify this handout.
      gop.hates.america
      • 1 Year Ago
      There is no sugarcoating this. Tax incentive = Handout You know why? Because someone else will have to pay to make up the lost revenue. Guess who that someone else is!
        IBx27
        • 1 Year Ago
        @gop.hates.america
        That someone else is the tax revenue generated by allowing a growing business to exist; something you wouldn't know about.
          gop.hates.america
          • 1 Year Ago
          @IBx27
          you mean like the tax revenue generated by allowing 2 million jobs at GM and its suppliers to exist?
        Richard
        • 1 Year Ago
        @gop.hates.america
        ^^ guy who does not understand business or economics and votes the same into office
          gop.hates.america
          • 1 Year Ago
          @Richard
          That's true. Mitt Romney is a complete idiot. That moron didn't even know how badly he was doing in elections, just like he was clueless about GM.
      • 1 Year Ago
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      mzungbawa
      • 1 Year Ago
      Lexus ES is on the MC-M Platform Avalon is on the MC-M platform Camry is on the MC-M platform Can someone explain how the ES is leaving its "Camry roots" if it is still on the same platform? I guess if the press release says so, it must be true.
        superchan7
        • 1 Year Ago
        @mzungbawa
        I believe the Avalon is designed from a stretched Camry. The ES would be designed around the Avalon structure, and hence a stretched Camry. This is slightly different from being based directly on the Camry architecture, as evidenced by the wheelbase no longer matching the Camry's. The internets make a huge deal about "platform sharing". It's literally just parts sharing and cribbing structural designs and components where suitable. If body panels and interior designs are different, consumers will understand that it is a different car. Nobody complains about the Lexus RX being a Camry despite sharing a "platform", because they are so different. Very few actual examples of true badge engineering still exist, as the market has caught on to that old trick.
      Shawn
      • 1 Year Ago
      Who says imports don't take government handouts?
      M-M
      • 1 Year Ago
      At least report this correctly. KY is offering them $146M TAX INCENTIVES, not cash. BIG Difference there.
        desinerd1
        • 1 Year Ago
        @M-M
        not really. and please stop using the letters "KY"
          Monthra 77
          • 1 Year Ago
          @desinerd1
          KY is the approved postal abbreviation for Kentucky.
        lasertekk
        • 1 Year Ago
        @M-M
        Cash that normally would have flowed into state coffers, the absence of which may as well read as a pay out on a balance sheet.
      funguy6713
      • 1 Year Ago
      Giving up Camry roots???!!! Bwaaahaha....still looks like an overpriced boring Camry to me...
      lasertekk
      • 1 Year Ago
      Government giving money to private company? Hhmm....
        • 1 Year Ago
        @lasertekk
        [blocked]
          • 1 Year Ago
          [blocked]
          • 1 Year Ago
          [blocked]
        rcavaretti
        • 1 Year Ago
        @lasertekk
        Interesting how *some* people are going to react to this....it's OK for the government to fund or encourage some stuff, but not this or that.
          graphikzking
          • 1 Year Ago
          @rcavaretti
          They aren't FUNDING anything. If Toyota doesn't operate there they get NOTHING. If they operate there they are MAKING money on income taxes, sales taxes, employee spending, corporate spending and still making SOME corporate taxes. Now if the state GIVES them $150 million UP FRONT that's totally different. That's what Major sports teams get when building a new stadium. The cities GIVE these private companies money up front and get low paying / partial jobs in return (most cities/states tax players when they play in each city).
      Michael S
      • 1 Year Ago
      $146.5 million for 570 jobs. So a subsidy of $257,000 per person.
        M-M
        • 1 Year Ago
        @Michael S
        Ugg, no. It's a tax incentive. It's money KY would NOT have to begin with. No one is paying Toyota.
          Mat Ford Rayman
          • 1 Year Ago
          @M-M
          If tax incentives aren't anything like payment, then why are they so effective in drawing companies?
        Matt
        • 1 Year Ago
        @Michael S
        I guarantee each of those workers will inject well over $250k back into kentucky's economy during this plant's lifetime.
          ctizzle
          • 1 Year Ago
          @Matt
          That's a joke right?!? You reSCUMS are something else. Such hypocrisy from these clowns! Ok to give FOREIGN...let me repeat....FOREIGN auto makers US/State TAX dollars to build a factory in your sibling-humping, bible belt states, but b/c of your hatred of unions and Obama, its NOT ok to keep an AMERICAN INDUSTRY alive?!?!? Some 'true patriots' YOU are!
      RetrogradE
      • 1 Year Ago
      Finally, a state as boring as the car. Perfect fit.
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