Behind the scenes at a LEXUS factory

Walking in, you can see photo frames hanging on the wall. Based on practices at other factories, most people would expect these to be historical photos of company executives or factory managers.

But at the Tahara factory in Nagoya, the photos on the wall

are of the plant's top 10 takumi or craftsmen.

To compete with BMW, Mercedes and other luxury carmakers that have much longer histories, Lexus is combining innovative technique with quality craftsmanship.

Craftsmen are held in high regard and divided into three groups - the third level comprises 2,200 people who can do only their specified tasks, the second level has 500 people who can do other jobs also and the top level is made up of those who can teach others.

A group of Thai journalists was recently invited to visit the award-winning factory, which manufactures the Lexus, Toyota's luxury brand. Toyota officials said the Thai press was only the second group of journalists to be granted access to the factory.

On the narrow walkway, one needs to watch out for automated vehicles running about to send parts and components to production lines. Traffic lights tell you to let the transporters go first.

Computerised signs show the work flow while sound signals that only Lexus workers can interpret beep incessantly.

Lexus Development Centre project general manager Isao Kanehara said Lexus cars use the same platforms as Toyota's, but "like foods, even though the ingredients are the same, different recipes can create different dishes".

There are the 500 "Lexus Musts" that ensure the quality of the company's automobiles.

That includes every detail, such as a cup holder or a lid must open

"magnificently", he said.

"Lexus has always been the first to use the most advanced technology," he said.

Along with sophisticated technology and robots, craftsmanship has been applied in many processes, including installing instrument

panels, seats and colour coating.

Every car passes 65 inspections such as testing of brakes, horn, lights, and chassis. In one test, the cars are driven with no hands on the wheel. In 100 metres, the vehicles deviate a maximum of 50 centimetres, which is less than European cars, he said.

The Tahara plant is unique - it incorporates all processes from producing parts and engines to final assembly. It is a mother plant for Lexus, with three production lines that yielded 610,000 cars last year, of which 80 per cent were exported to North America and other markets.

The plant takes 91 seconds to produce a vehicle, similar to the rate of sedan production of the Toyota plant in Thailand, but slower than Thai pickup production which is about one minute per vehicle. There are 579 suppliers near the factory.

Kanehara said in the 19 years since its birth, Lexus has grown up significantly but still has some challenges, including its high dependence on the North American market, its low sales to Japan's affluent youth, very low brand awareness in Europe and its weakness in the mid- and large-size sedan segments.

The company would like to expand its market penetration in Asia, however it may take time because competitors such as BMW and Mercedes have been in the region much longer, he said.

Last year, the company sold 520,000 cars worldwide, double of its sales five years ago. It sold 50,000 units in Asia, up four times from 2002.

Toyota Motor Thailand vice  president Vudhigorn Suriyachant-ananont said the company has no plans to open more Lexus dealers in Thailand.

The focus will be to create a good impression and positive customer experiences with the car, the brand and its services.

"We want our customers to feel proud to be the owner of a Lexus, like our slogan says, 'Make the most of every moment'," he said.

Toyota sold 360 Lexus units in Thailand last year, a 15-per-cent increase. In 2008, the company expects to sell between 370 and 400, based on its projection that the luxury segment will grow 10 per cent this year. The luxury market totalled 6,700 vehicles last year.