Japan's top three carmakers will halve production in China following a sales slump there sparked by a backlash over a territorial row between Tokyo and Beijing.
Sales of luxury cars across the United States have not kept pace with non-luxury vehicles but Lexus still expects to hit its target this year.
Japanese auto giants Toyota and Nissan are reducing production in China because demand for Japanese cars has been hit by a bitter row over disputed islands.
Japan's big three automakers shuttered some or all of their factory operations in China on Tuesday amid escalating anti-Japan protests centred on a bitter territorial dispute between the Asian giants.
President Barack Obama will launch a new WTO enforcement action against Chinese auto subsidies Monday, countering his Republican foe Mitt Romney's accusations that he is too timid towards Beijing.