Toyota expects its Lexus brand to make money soon in Europe despite a very tough competitive environment and an unfavorable yen/euro exchange rate.
"Lexus can be profitable in two to three years even though production will remain in Japan," said Didier Leroy, the CEO of Toyota Motor Europe, on the sidelines of the Paris auto show.
Leroy did not talk specifics about how much Lexus loses in Europe. A Lexus spokesman told Automotive News Europe that the brand's profits in Europe hinge on its hybrid lineup, which accounts for 85 percent of its sales in western Europe and 60 percent of its sales in Russia.
Lexus is preparing to launch a new hybrid model based on the Lexus LF-CC hybrid coupe concept it unveiled at the show.
Leroy also said its Lexus sales volumes in Europe were not high enough to produce the car locally in the region at the moment but he did not rule out future production in the region.