[TEG]

Well, regarding the factory - you can see a sticker on new IS300s showing that it is made at Kanto Jidosha (Auto Works), and their web site shows that they make the Altezza there:
http://www.kanto-aw.co.jp/eng/w-new/index.htm

---
http://www.kanto-aw.co.jp/eng/inside/profile/profile.htm

"Kanto Auto Works, Ltd. One of the leading manufacturers of Auto-Bodies in Japan, made its debut in the former
Naval Base of Yokosuka in 1946, entrusted with mission of reconstructing it into a peace industry city and
rehabilitating its transportation under the name of Kanto Electric Motor Works, Ltd.

The company changed its name to the present Kanto Auto Works, Ltd., in May 1950. Since then, the company has
continued to expand as a powerful cooperator plant for Toyota Motor Corporation, and is ready to serve for
auto-bodies throughout the world."

They have been building Toyota's for a long-long-long time, but are still a subcontractor.

 

[TEG]

>> Once again, I ask, what is the difference whether a "Toyota" plant builds the IS or a "sub-contractor" plant? Keep in mind that with the traditional Japanese business model and the "keiretsu", most of these companies form groups that basically make them the same family.


OK - here are some reasons why I would prefer not to have a subcontractor do the work:

1> It adds an extra layer of bureaucracy to the process. If Toyota decides that something needs to change with the car, then they have to explain it to the Kanto people and get them to understand and implement the change.
2> There is an extra layer of mgmt staff that needs to get paid out of (additional) markup on the vehicle.
3> To help compensate for #2, they need to find additional ways to cut costs. You get "two layers of bean counters" working to save costs on the cars.
4> It gives Toyota a scapegoat if there are quality issues. Sure they don't want to shoot themselves in the foot, but if something is wrong with the car they can say "it was Kanto's fault, not ours" and shrug off some of the blame.
5> Kanto is not close to the big Toyota manufacturing centers ("Toyota City") so the Toyota quality control people have to make a longer trip to "check up on the factory". If there is a quality question it seems (to me) that they might send less people over to check on the production line give the time/distance between the HQ & the factory.

Now I am sure that Toyota wants to see Kanto build vehicles up to "the full Lexus standards", but I started having some doubts when I saw postings from long-time Lexus owners saying that they were seeing body gaps and paint issues not seen before on "other" Lexus models.

 

[TEG]

Here is an interesting site that goes into some of the details of various auto manufacturing alliances:
http://www.nttls.co.jp/fpc/e/gyouji/br/1999/990615.html

Here is an article about Boxster's built in Finland: http://www.detnews.com/AUTOS/9801/28/lead/lead.htm

One big reason why auto makers "farm out" production to a subcontractor is that they have run out of capacity at their primary plants. They may not have the time to build a new factory, or trust that the demand for the vehicle in question will be long term. In the case of Porsche's built in Finland, alot of Porsche customers would rather have a "German built Porsche", and I am sure that Porsche would love to oblige, but they got stuck in a "situation" when Boxster demand far outran their ability to produce.

--

Why do the manufacturers insist on producing their "flagship" models (e.g. Porsche 911 or Lexus LS430) "in house" while subcontracting their "entry level" models (e.g. Porsche Boxster or Lexus IS300)?

---------
Just curious:
How would people feel if the IS300 were a Toyota/GM "joint venture" built in the USA?

 

[TEG]

You can see what cars Kanto Auto works group is currently making by going here:
http://www.kanto-aw.co.jp/eng/prdct/major.htm

As you can see the Iwate plant makes the Altezza/IS as well as the Toyota Corolla Spacio (which I guess is for Japan only).

One of their other plants make the Toyota Celica, but everything else seems to be Japan only.

Kanto also makes sailboats, furniture and other non-car "stuff".