#Kyushu

That Lexus will come out with a new ES Hybrid, dubbed the ES300h, is no secret. Being an entry level Lexus, it has to watch its price point. It also has to contend with the high yen, most of the Lexi are exported. The Nikkei [sub] thinks it know how Toyota will solve this dilemma, at least partially. Toyota will make the ES300h on the Japanese island of Kyushu, “taking advantage of the site’s proximity to Asian suppliers of low-cost parts,” The Nikkei says.

When we went on the plane this morning for the some 600 mile trip to see a Nissan plant in Kyushu, the southernmost of the four main Japanese islands, we asked ourselves: Why?

After all, the plant had been there since 1975. What’s new? We soon should find out: Nissan CEO Carlos Ghosn went on a full frontal attack against the high yen, threatened several times that Nissan and most of the Japanese industry would pack up and leave, and delivered an ultimatum: “If six months down the road we are still in this situation, then this will provoke a rethinking of our industrial strategy.”