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Lexus
Company typeLuxury division
IndustryAutomobile
Founded1989
HeadquartersJapan Toyota, Aichi, Japan

United States Torrance, California, USA

Belgium Brussels, Belgium, EU
Key people
Bob Carter, Vice President and General Manager, Lexus Group

Karl Schlicht, Vice President, Lexus Europe

Takeshi Yoshida, General Manager, Lexus Development Center
ProductsLuxury vehicles
ParentToyota Motor Corporation
Websitewww.lexus.com

Lexus is the luxury vehicle division of Japanese car maker Toyota Motor Corporation. Lexus brand name vehicles are sold in North America, the Middle East, Europe, Africa, Latin America, Asia and Oceania; in the United States, Lexus is the highest-selling brand of luxury cars. Until June 2005, Lexus vehicles were sold under the Toyota marque in Japan, at which point the Lexus marque was introduced.

Since its debut in 1989, Lexus has developed a reputation for the reliability of its vehicles and the quality of its customer service. In 2006, consumer ratings firm J.D. Power and Associates named Lexus the most reliable brand in the U.S. based on its Vehicle Dependability Survey, a measure of over 47,000 vehicle owners and the problems they experienced in the first three years of vehicle ownership. It was the twelfth consecutive year that Lexus achieved this top rating.[1] That same year, Consumer Reports also named Lexus the most reliable brand in its Annual Car Reliability Survey of over one million vehicles nationwide.[2] Additionally, Lexus ranks highly on surveys of dealership service experience. The British Top Gear and Auto Express satisfaction surveys have had Lexus at the top of the surveys for most of the past fifteen years, with high reliability as one of the main selling points of Lexus around the world.

From its inception, the motto of Lexus has been "The Relentless Pursuit of Perfection." In 2003, the Lexus Division in the U.S. revised its motto to "The Passionate Pursuit of Perfection." Since fall 2005, the worldwide Lexus motto in multiple countries is "The Pursuit of Perfection."

History

The origins of Lexus

The first LS 400 flagship sedan debuted in 1989, introducing Lexus to the world.

In 1983, Toyota Chairman Eiji Toyoda summoned a secret meeting of company executives, to whom he posed the question, “Can we create a luxury vehicle to challenge the world's best?” This question prompted Toyota to embark on a top-secret project, codenamed F1 (“Flagship” and “No. 1 vehicle”).[3] The F1 project, which eventually became known as the Lexus LS 400, aimed to develop a luxury car that would expand Toyota’s product line, giving it a foothold in the premium segment and offering both longtime and new customers an upmarket product.[4] The F1 project was inspired by the success of the Toyota Supra sports car and the luxury Toyota Cressida models. Both the Supra and Cressida were rear-wheel drive cars with a powerful 7M-GE/7M-GTE engine. The successful launch of the Acura marque by Honda three years prior also influenced Toyota to advance its plans for a luxury division. Around this same time, Nissan would unveil plans to create its own luxury division, Infiniti, while Mazda and Mitsubishi considered developing luxury flagships.

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market research on luxury consumers.[5] That summer, several F1 designers rented a home in Laguna Beach, California to observe the lifestyles and tastes of American upper-class consumers. Toyota’s market research concluded that a separate brand and sales channel was needed to present its new luxury flagship, and plans were made to develop a new network of dealerships in the U.S and in other markets.

The Lexus brand

File:Lexus grille.jpg
The Lexus emblem is typically featured on the center of the grille.

In 1986, Toyota’s longtime advertising agency Saatchi & Saatchi formed a specialized unit, Team One, to handle marketing for the new luxury brand.[3] Image consulting firm Lippincott & Margulies was hired to develop a list of 219 prospective names; Vectre, Verone, Chaparel, Calibre and Alexis were chosen as top candidates. While Alexis quickly became the front runner (possibly due to the association with the Alexis Carrington character on the popular 1980s primetime drama Dynasty) and later morphed to Lexus, the name has been attributed to the combination of the words "luxury" and "elegance." According to Toyota, the name has no specific meaning and is just meant to be pleasing and easy to remember. However, some say Toyota took the name from "Luxury EXports to the United States."

Just prior to the release of the first vehicles, database service LexisNexis obtained a temporary injunction forbidding the name Lexus from being used as they stated it might cause confusion. Upon reflection, the court lifted the injunction, deciding that there was a low likelihood of confusion between the two products.

The Lexus logo was developed by Molly Designs and Hunter Communications.[6][7] The final design for the Lexus logo features a stylized “L” within an oval, and according to Toyota was rendered using a specific mathematical formula.[8] The first teaser ads featuring the Lexus name and logo, designed by Team One, appeared at the Chicago, Los Angeles, and New York auto shows in 1988.

The launch of Lexus

In 1989, after an extended development process involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, around 450 prototypes, and over $1 billion in costs, the F1 project was completed.[3] The resulting flagship, the Lexus LS 400, had a unique design, sharing no major elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-wheel drive.

To illustrate the smoothness of the Lexus V8 engine, a 1989 advertisement showed a pyramid of champagne glasses on the hood of an LS 400 running at high speed.

The LS 400 debuted in January 1989 at the North American International Auto Show in Detroit. The following September, Lexus vehicles officially went on sale at a network of 73 new Lexus dealerships across the U.S. The LS 400 was sold along with a smaller sibling, the Toyota Camry-based ES 250. The launch of Lexus was heralded by a multi-million dollar advertising campaign in both television and print media. Lexus subsequently launched in the United Kingdom, Switzerland, Canada, and Australia in 1990.

The LS 400 was widely praised for its silence, well-appointed and ergonomic interior, fine engine performance, outstanding build quality, aerodynamics, fuel economy, and value. (In some markets, it was priced against mid-sized six cylinder Mercedes-Benz and BMW models, while offering size, performance, and quality comparable to their full-size cars). It was generally regarded as a major shock to the European marques, but was criticized by automobile columnists for anonymous styling and a suspension regarded as too compromising of handling for ride comfort. Nonetheless, the LS 400 won several major motoring awards when released.

In 1990, during its first full-year of sales, Lexus sold 63,594 LS 400 and ES 250 sedans in the U.S., the vast majority being of the LS model. By 1991, sales had increased to 71,206 cars in the U.S. market, making Lexus the top-selling luxury import in the U.S. That same year, Lexus earned first place in J.D. Power’s studies on initial vehicle quality, customer satisfaction, and sales satisfaction.[3] Lexus also introduced two new models in 1991, the SC 400 coupe and ES 300 sedan. The SC 400 (designed in tandem with the Japanese Domestic Market Toyota Soarer) shared the LS 400’s V8 engine and rear-wheel drive design, while the ES 300 replaced the ES 250 and became Lexus’ best-selling sedan. In 1996, Lexus introduced its first luxury sport utility vehicle, the LX 450.

Lexus today

File:Lexus Advanced Parking Guidance System ad.jpg
In its advertising debut, the 2007 fourth generation Lexus LS parallel parked itself between two champagne glass pyramids.

Lexus has grown to become the top-selling luxury brand in the United States. In 2005, Lexus sold 302,895 vehicles in the U.S., more than any other luxury competitor, foreign or domestic. In terms of volume, Lexus has been the number one selling luxury marque in the U.S. for the past six years.[9] Lexus vehicles are now available in over forty countries across the Americas, Europe, Asia, and Oceania,[10] and the Lexus marque ranks as the fourth-largest luxury brand in the world by volume. The marque was finally introduced to the Japanese market on July 26, 2005. The compact IS 250/IS 350, convertible SC 430, and mid-size GS 350/GS 430 became available in Japan in the 2006 model year.

The Lexus flagship sedan has been upgraded in four successive generations and premiered in 2006 as the all-new LS Series. This latest generation of the LS retains many of the LS 400’s noteworthy attributes, but now offers both standard (LS 460) and long wheelbase (LS 460 L) versions, additional room, numerous options, and more luxury features than available on the original model. The LS Series offers features never before seen in luxury vehicles, such as an eight-speed automatic transmission, automatic parallel/reverse parking (EZ Park), real-time traffic guidance with dynamic rerouting, and four-zone climate control with infrared body temperature sensors.

Lexus’ full vehicle lineup now includes the IS, ES, GS, and LS series of sedans, the SC convertible coupe, and the RX, GX, and LX ranges of luxury sport utility vehicles. The IS and ES sedans are positioned towards the entry-luxury consumer, with the IS performance sedans catering to the luxury sport segment, and the larger front-wheel drive ES catering to the comfort luxury segment. The GS performance sedans are focused on the mid-size luxury sport sedan market. Lexus' luxury SUV lineup progresses in size with the RX crossover SUV, mid-size GX, and full-size LX models. Designed for the high-end luxury consumer, the convertible SC and the flagship LS sedans complete the Lexus model range.

Lexus directly competes with such luxury brands as Europe's Audi, BMW, Jaguar, Mercedes-Benz, Porsche, Saab, and Volvo; the U.S.’ Cadillac and Lincoln, and Japanese brands Acura, and Infiniti.

The Lexus RX has become Lexus' best-selling vehicle, and now has a hybrid version, the RX 400h.

Recently, Lexus has been a pioneer in the field of hybrid vehicles. In 2005, Lexus introduced the world’s first hybrid luxury SUV, the RX 400h. This vehicle combined gas and electric motors for increased power, improved fuel efficiency, and lower emissions relative to traditional, gas-powered equivalents. In 2006, Lexus unveiled the GS 450h, a performance hybrid sedan. In 2007, Lexus is expected to release the LS 600h and LS 600h L hybrid versions of its LS flagship series. The LS hybrids are expected to offer V12 performance with the fuel economy of conventional V6 engines. The LS 600h L will be offered in the U.S. and the 600h will be offered in Europe, Japan, and other countries. Lexus terms the powertrain setup in its RX 400h, GS 450h, and LS 600h/LS 600h L vehicles as Lexus Hybrid Drive, with each hybrid model being the halo vehicle in their respective lineups.

In January 2007, Lexus announced a new performance division, F-Series, which would produce racing-inspired versions of its luxury performance vehicles. The first F-Series vehicle, the IS-F, made its debut at the 2007 North American International Auto Show, accompanied by an exotic F-Series supercar concept, the LF-A F. The Lexus F-Series vehicles will rival the high-performance lineups of the leading European and American luxury marques.

In the U.S. and Canada, the full Lexus model range of gasoline- and hybrid-powered vehicles is sold. The diesel-powered IS 220d is only available in Europe, where the ES sedan and GX/LX full-size SUVs are not sold; similar versions of the latter models are sold under the Toyota brand in Europe.

Lexus models

Current models

Lexus introduced the all-new IS saloons in 2006.
The Lexus ES has been Lexus' best-selling series of sedans for over a decade.

Production model history

The Lexus GS Series features V6, V8, and hybrid versions.
  • IS - compact RWD/AWD
    • 2000 IS 200/IS 300
    • 2006 IS 250/IS250 AWD/IS 350/IS 220d
    • 2009 IS-F
  • ES - mid-size FWD
    • 1990 ES 250
    • 1992 ES 300
    • 1996 ES 300
    • 2000 ES 300
    • 2003 ES 330
    • 2007 ES 350
File:2007 Lexus LS.jpg
The new Lexus LS Series flagship sedan.
  • GS - mid-size RWD/AWD
    • 1993 GS 300
    • 1998 GS 300/GS 400
    • 2001 GS 430
    • 2006 GS 300/GS 300 AWD/GS 430/GS 450h
    • 2007 GS 350/GS 350 AWD/GS 460 (not yet available)
  • LS - full-size RWD
    • 1990 LS 400
    • 2001 LS 430
    • 2007 LS 460/LS 460 L
    • 2008 LS 600h/LS 600hL (Hybrid)
The Lexus SC 430 hardtop convertible coupe.
The Lexus LX, GX, and RX Luxury Utility Vehicles (left to right).

Concept vehicles

File:Lexus LF-A concept.jpg
The Lexus LF-A concept.

Design and technology

The fifth-generation Lexus touchscreen navigation system.

Lexus design has traditionally placed an emphasis on quality engineering and world-class luxury vehicle standards.[3] Key Lexus attributes, emphasized from the first Lexus LS model onward, include aerodynamics, performance, smooth ride, interior ergonomics, quiet cabins, fuel efficiency, safety, and reliability. General characteristics are summarized in the Lexus IDEAL philosophy (Impressive, Dynamic, Elegant, Advanced, and Lasting), which guides the development process of each Lexus design.[11] Each Lexus vehicle also must fulfill over 500 specific product standards[11] known as Lexus Musts ranging from steering wheel responsiveness to leather seat stitching.[12] Technological innovations on Lexus vehicles include advanced safety systems, powertrain designs, and vehicle comfort, convenience, and entertainment features.

The Lexus Mark Levinson Reference Surround System.

In the vehicle cabin, Lexus has incorporated touchscreen navigation system interfaces across the entire model range, eschewing knob-style rotary button systems. SmartAccess, the smartkey entry and startup system on new Lexus vehicles, is designed to make vehicle operation more user-friendly. Instrument panels feature electroluminescent Optitron gauges, improving clarity. Lexus vehicles were among the first to offer surround sound premium audio systems, partnering initially with stereo firm Nakamichi and since 1998 with high-end audio purveyor Mark Levinson. Along with premium audio, Lexus designers have focused extensively on improving the quiet of their cabins, a tradition going back to the first LS 400 when sound-absorbing foam was injected into structural passages around the cabin. The latest IS models sport sound-absorbing sun visors, the RX and other models feature acoustic glass windshields, and the power window motors on the latest LS are designed to reduce speed during certain intervals of operation for a more pleasant sound. Multiple cabin systems were redesigned for the new LS hybrid sedan to achieve harmony with the engine's extreme quiet.

Safety features which have been incorporated on multiple vehicles of the Lexus lineup include the Vehicle Dynamics Integrated Management (VDIM) stability/traction control system, twin-chambered passenger airbags, knee airbags, backup cameras, swivel headlights, and sonar warning systems. The new LS Series flagship also features a number of world's firsts, including advanced pre-collision/safety systems available with facial recognition and pedestrian detection capabilities, lane-departure warning systems, and rear pre-collision whiplash protection. Select models of the new LS and GS sedans feature safety systems which monitor driver attentiveness and fatigue. The new LS is also the first car that offers an automatic 8-speed gearbox, and the hybrid LS will be the first to use LED headlamps.[13] The Lexus Hybrid Drive systems used on the RX, GS, and LS hybrid models differ from conventional hybrid systems in being tuned for increased horsepower while retaining hybrid efficiency and environmental benefits.

Lexus College in Shizuoka, Japan.

In 2005, Lexus completed a full organizational separation from parent company Toyota, with dedicated Lexus design, engineering, training, and manufacturing centers working exclusively for the luxury division.[14] This effort coincided with the launch of Lexus in its home market of Japan, and an expanded global launch of Lexus in major world markets. A recent focus of the Lexus Development Center (founded in 2003) is the introduction of L-Finesse, a new design philosophy for the latest generation of Lexus vehicles (see following). Related areas of focus include the incorporation of Japanese cultural motifs into new designs, and the development of future automobile technologies.[15] The new GS, IS, and LS designs are a product of the new Lexus design and engineering centers, along with the latest LF Series concept vehicles. Separate efforts are underway to produce the Lexus performance division, F-Series.

Production

File:Lexus Tahara.jpg
Since its first generation, the Lexus LS has been exclusively produced at the award-winning Tahara plant in Japan.

Many Lexus vehicles are manufactured in Toyota's Tahara, Japan plant, a highly sophisticated, computerized manufacturing plant.[16] In 2005, J.D. Power and Associates bestowed its Platinum award for worldwide plant quality on the Tahara plant, stating that it has the fewest defects of any manufacturing plant in the world.[17] It was the fourth consecutive year that the Tahara plant captured this award. In 2006, J.D. Power named the Kanji (Iwate) plant, site of ES and IS model production, as its recipient of the Platinum award for worldwide plant quality.[18]

Lexus manufacturing techniques include methods and standards of quality control that differ from Toyota models.[3] At the Tahara plant, site of LS, GS, and GX production, separate assembly lines were developed for the manufacture of Lexus vehicles. New molds and specialized manufacturing equipment were also developed for the Lexus production process. Welding processes, body panel fit tolerances, and paint quality requirements are more stringent for Lexus models. Each production Lexus vehicle is also given an extensive visual inspection for flaws and subjected to vibration tests to ensure a smooth and quiet ride.[3]

All Lexus wood trim is genuine, procured from sustainable sources,[19] and each wood inlay in a single vehicle is selected from the same tree for a consistent appearance.[20] Lexus engines are tested by stethoscope-equipped takumi engineers (Japanese for "feeling master") to ensure optimum performance.[21] These engineers are responsible for maintaining production standards at key points in the assembly process. Craftmanship on the latest Lexus LS model extends to a paint process where the entire vehicle is hand-sanded twice,[22] the steering wheel leather buffed for six hours,[14] and the window chrome trim carved out of a single piece of metal and polished by hand.

The North American-market RX 350 (since the 2004 model year) is produced in the city of Cambridge, in Ontario, Canada, and is the first Lexus plant located outside of Japan. Lexus vehicles are produced at the Araco, Kanji (Iwate), Kanji (Kanto Jidosha), Katashiki, Kyushu, and Tahara plants in Japan.[23]

Service

Interior of a Lexus dealership, featuring indoor steel waterfall.

Lexus has become known for efforts to project a luxury image even with service provided after the sale. The waiting areas in the service departments are complete with such amenities as a refreshment bar, business center that is soundproofed and stocked with computers and a fax machine, and often an accessories/gift shop. Other amenities can include a children's play area, indoor putting green, and other recreational services. Recently, several Lexus dealerships have added on-site cafes and designer shops.[24][25]

Lexus dealerships typically feature a service bay that is lined with large picture windows, allowing customers to watch the servicing of their vehicle. Dealership services often include complimentary loaner cars, free car washes, and convenience shuttles. At the conclusion of each service appointment, Lexus owners will typically receive a followup survey, either in mail, online, or via telephone, and be asked to rate their recent service experience. To improve customer service, some Lexus dealerships have sent their employees to train at establishments known for their customer service, such as Nordstrom department stores and Ritz-Carlton hotels.[26] Lexus has also recently added an additional owners' privilege, the use of exclusive parking lots at major sporting arenas, entertainment events, and shopping malls, reserved only for Lexus vehicles.[27]

In 2005, Lexus came first in the Top Gear Survey, "the UK's biggest independent car satisfaction survey" with over 76,000 respondents.[28] In 2006, Lexus ranked first for the eleventh time in J.D. Power's Customer Service Index, its annual study involving over 79,000 U.S. owners and dealership experience.[29] In 2006, the Luxury Institute, New York, rated Lexus #1 in Customer Experience among luxury automobile brands based on its survey of over 2,100 high-income households.[30] On the strength of its customer service standards and high product satisfaction, Lexus enjoys one of the highest customer loyalty rates in the industry.[31]

Lexus' customer service efforts date from the outset with the "Lexus Covenant," its founding promise which states that "Lexus will treat each customer as we would a guest in our home." [1] This commitment was put to an early test in 1989 when new LS 400 models were voluntarily recalled due to a brake light wiring issue; owners were pleasantly surprised to find their cars serviced at home for no extra charge, and in many cases washed and refueled for their convenience.

In the U.S., Lexus offers a 4-year or 50,000 mile basic warranty, by default. The powertrain warranty is a 6-year or 70,000 mile coverage plan. Corrosion protection is a 6-year warranty as well.

Motorsport

In 2006 and 2007, Lexus won the Rolex Sports Car Series Manufacturer's Championship.

Lexus has been participating in endurance racing, in particular the Rolex 24 Hours of Daytona. Since entering the series in 2004, Lexus has won over 15 Rolex Series event races.[32] In 2005, Lexus was runners-up and in 2006 it won the championship. Although Toyota has won this prestigious race in the past it was the first time that its luxury arm emerged as the winner.

In 2007, six Lexus-powered Daytona prototypes were entered in the Rolex 24 Hours of Daytona event at the Daytona International Speedway. Lexus was a repeat winner of the event, with a Lexus-Riley prototype driven by Scott Pruett, Juan Pablo Montoya, and Salvador Durán of Chip Ganassi Racing finishing first; Lexus-Riley prototypes also took three of the top ten spots.

After the release of the Lexus brand on the Japanese Domestic Market (JDM) in 2005, four SC 430 coupes were entered in the SuperGT series in the GT500 class. In the first race of the 2006 series, an SC 430 took the chequered flag. In 2006, Lexus raced a hybrid vehicle for the first time, entering a GS 450h performance hybrid sedan in the Tokachi 24-hour Race in Hokkaido, Japan.

Lexus' racing unit, Team Lexus, has also made plans to enter two IS 350 race cars in the American Le Mans Series' GT2 class. Lexus is also expected participate in 12 Hours of Sebring which now form a part of American Le Mans. Additionally, there has been speculation of a Lexus F1 operation in the near future. This racing venture would be in line with Lexus' expansion into the luxury car market and increasing competition with BMW and Mercedes-Benz.

Future of Lexus

Concept vehicles

The Lexus LF-C concept.

Lexus’ future intentions are hinted at in its concept car efforts. While a number of early Lexus concept cars never saw production, the latest LF Series concept vehicles (which first began appearing at auto shows in 2003) have translated into production form. Elements of the LF-S sedan appeared in the 2006 GS sedan, and design cues from the LF-C convertible appeared in the 2006 IS sedan. The LF-C's hardtop design has also led to speculation on a possible IS coupe or convertible model. The LF-Sh concept car gave the public an advance preview of the 2007 LS 460’s appearance several months later.

Currently, there is speculation as to whether the LF-A coupe concept will ever see production, possibly as the 2009 GT 450, and others have suggested that the LF-X crossover concept will appear as the 2008 JX SUV.[33] Prototype models of the LF-A have been spotted at the Nürburgring test track in Germany, along with a modified second-generation IS model which may be the high-performance IS-F motorsport version.

Unique features on the LF Series concept vehicles include advanced instrumentation, multiple driver-selected vehicle configurations, hybrid/experimental powertrains, biometric security features, and unconventional driver interface designs.

L-Finesse

File:L-Finesse.JPG
Insignia of the L-finesse design philosophy.

Lexus introduced a new comprehensive design language, known as L-Finesse, with its LF Series concept cars. L-Finesse first appeared on a production vehicle with the introduction of the 2006 Lexus GS model.[34] Featuring sculpted body panels, the use of repeating motifs both inside and outside the vehicle, this new design language countered criticisms that Lexus styling was too conservative for the sophisticated luxury market. According to Lexus, L-Finesse embodies three essential qualities: Intriguing Elegance, Seamless Anticipation, and Incisive Simplicity. These qualities, concrete and abstract, are derived from Japanese cultural motifs, and refer to the sensory experience that L-Finesse is designed to create for the luxury vehicle owner.[35] The L in L-Finesse stands for "Leading Edge."

Lexus has since unveiled a completely new sedan lineup with all models featuring an L-Finesse design treatment. This has given the latest generation of Lexus sedans a familial resemblance and a distinct design identity. Unlike previous vehicles, which were often mistaken with understated U.S. market Japanese cars, L-Finesse Lexus vehicles have unique design traits in common with new generation vehicles in the model range, and somewhat reminiscent with other Japanese origin vehicles such as Acura or Infiniti. It has been noted by some observers that the Lexus L-Finesse theme is promoting several truly Japanese cars. Lexus has since been praised for providing cars that are as identifiable with Japan as Jaguars are with the UK and Volvos are with Sweden.

File:Lexus L-Finesse Exhibition.jpg
Lexus L-finesse exhibition in Milan, Italy.

Exhibitions of L-Finesse styling and artwork were presented in Milan, Italy in 2005 and 2006.[36] The 2005 exhibition, held at the Teatro dell'Arte in Milan, featured the third generation Lexus GS, the Lexus LF-A concept, and a "Time in Design" themed art display with sculpture, projection, and photographic art displays. The 2006 exhibition at the Museo della Permanente in Milan featured the fourth generation Lexus LS 460 and included a fiber-optic "forest" landscape. The launch of the 2007 Lexus LS model in October 2006 was accompanied by special presentations at "460 Degrees" art galleries in Beverly Hills, Chicago, Miami, and New York City, and an outdoor vehicle art display at the World Financial Center in downtown Manhattan.[37]

F-Series

Insignia of the Lexus F-Series.

In late 2006, Lexus filed trademark applications for an "F" emblem, leading to speculation that the luxury marque was about to launch a performance brand.[38] At the time it was suggested that "F" stood for "Fast" or "Flagship." Interviews with company executives in prior years had included mentions of Lexus possibly starting a performance brand to compete with the likes of Mercedes' AMG, Audi's S/RS, Cadillac's V-series, and BMW's M division, among others. An earlier in-house tuning effort, the TRD-based L-Tuned, had offered performance-enhancement packages on the IS 300 and GS 430 sedans in the late 1990s. With the launch of the second generation 2007 IS sedans, the premiere of the LF-Series concepts, and increasing participation in motorsports, Lexus' brand identity has expanded to include more performance-oriented aspects. In December 2006, Lexus announced that the first vehicle in the F-division lineup, the IS-F sedan, previously nick-named the IS 500 [2], would premiere at the North American International Auto Show in January 2007.[39] The vehicle subsequently premiered at Detroit along with a redesigned version of the concept LF-A supercar. Compared to the V6, 306 hp IS 350, the IS-F featured a V8 engine and over 400 hp. Media reports suggested that the IS-F sedan would be followed by a GS-F sedan and IS-F coupe.[38]

Global ambitions

Premiere of the Lexus LF-Sh concept at the Tokyo Motor Show.

Although Lexus has had phenomenal success in the US since its introduction, it has had more modest success outside North America. In its home country, Japan, the Lexus brand started marketing in 2005 and exhibited slower than expected sales.[40] The introduction of the LS 460 in September 2006, however, led to over 12,000 preorders in its first month--several times expectations. With regards to the European market, where Lexus has less brand recognition and sales,[41] automotive analysts have pointed to a difference between U.S. and European customers, suggesting that Lexus has been so successful in North America because the wide consumer base of Toyota and in particular the baby boomers wanted something more luxurious as they were becoming older and their surplus incomes were allowing them to migrate to brands such as Mercedes-Benz and BMW. The huge success of Lexus was in part due to the fact that its higher levels of quality and cut-rate prices enabled it to retain those migrating customers and keep them "in the family."[42]

In Europe, this may have had repercussions as Lexus gradually cemented an image of cut-rate brand, which would offer similarly equipped cars at tens of thousands of pounds/francs/euros less than its primary competitors, Mercedes-Benz and BMW. The former chief of BMW, Eberhard von Kuenheim predicted that this strategy would work to some extent in US, but not in Europe, where the words premium and luxury do not go well with cut-rate pricing. Some automotive experts believe that Lexus' failure to woo European customers and its very slow incremental increase in European arena is because of the serious damage Lexus has done to its brand image. This has led some automotive thinkers to believe that unless Lexus prices its products head-to-head with the European premium brands and emphasizes its superior quality, reliability and engineering, it will not be able to succeed globally.[43]

However, quality levels of European brands are seemingly dwindling,[44] while Lexus continues to score highly on such reports.[45] Also, in order to attract European buyers, diesel engines have been added to the lineup (starting with the IS 220d), and with Lexus LF concept cars making it into production, Lexus is quickly beginning to re-invent itself as a global luxury brand. Some of these new models will come with a sticker price of around $100,000, setting these models against their European rivals in terms of price.[46]

The addition of hybrid models (including the RX 400h and GS 450h) have also driven European sales increases in environmentally-conscious markets such as the United Kingdom. Politicians in the UK (such as British Conservative Party candidate, David Cameron) have endorsed Lexus by using Lexus GS vehicles in place of British-built Vauxhalls, Jaguars and Rovers. Mayor of London, Ken Livingstone, replaced his LS 430 with a GS 450h. The London Congestion Charge excludes hybrid vehicles, adding incentive to Lexus hybrids.

The first Lexus diesel-powered vehicle, the IS 220d.

In the United Kingdom, the largest European market for Lexus, the IS series accounts for the largest number of Lexus sales (the largest proportion increasing with sales of the new IS 220d), with the GS 450h and RX 400h making up the second largest proportion. Sales of the LS flagship have been small compared to the lower-end Lexus vehicles due to lesser public perception of the brand and the larger expense of the vehicle. This is combined with the higher perception of Mercedes-Benz, Audi, BMW and Jaguar rival brands. With Lexus sales increasing in the UK due to the introduction of the IS diesel and GS/RX hybrids, Lexus has emerged as a European second-tier luxury brand that is rising fast. The second-generation IS, which emerged in 2006 as an intelligent alternative to the dominant German and British marques' compact executive cars, has become representative of Lexus' efforts in Europe. Total Lexus Europe sales increased 72% in 2006 to over 50,000 vehicles, making Lexus one of the fastest growing makes on the continent.[47]

In South Korea, with sales of the ES 350 spearheading its efforts, Lexus has been the top-selling luxury import since 2005;[48] in Taiwan, Lexus also became the top-selling luxury import in 2005.[49] In Australia, Lexus' sales growth has surpassed its rivals, and the line now ranks third in overall luxury import sales, with the IS model generating high demand.[50] Total worldwide Lexus sales are expected to reach 500,000 vehicles by 2007.[51]

Lexus trivia

  • In the United States, Lexus Financial Savings Bank, in conjunction with US Bank, has launched a Lexus Pursuits Visa Card. [3]
  • Lexus' Certified Pre-Owned program was among the first in the automotive industry; begun in the U.S. in November 1993, the program features a 161-point inspection of pre-owned vehicles, a 3-year/100,000 mile warranty, and is now available in multiple countries. [4]
  • File:Lexus Minority Report concept.jpg
    The Lexus 2054, shown in the film "Minority Report."
    Lexus was requested by Steven Spielberg, an ardent fan of Lexus and himself an owner of an LX 470 and an RX 400h, to design a vehicle which would fit the requirements of year 2054 for his movie Minority Report. Lexus came up with an advanced vehicle which would run on fuel cells and have many advanced safety features including a crash-proof structure. (Lexus' cinematic concept car also appears in The Island, though it's colored blue, not red). A Lexus film tie-in site proposed a Lexus future vehicle that would drive itself, take dinner orders verbally, and select music to match occupant moods.
  • Celebrity owners of Lexus vehicles include Steven Spielberg, Robert DeNiro, Dustin Hoffman, Harrison Ford, Holly Hunter, Nicolas Cage, Diane Keaton, Mel Gibson, Cameron Diaz, Tony Hawk, Milla Jovovich, Christie Brinkley, Calista Flockhart, Paula Abdul, Tyra Banks, Michael Bloomberg, and Bill Gates.
  • Lee Kuan Yew, the first Prime Minister of Singapore, switched from a Mercedes to a Lexus GS 300 in late 1990s/early 2000s, citing its superior reliability; in interviews Mr. Lee said he was tired of dealing with car repairs. His personal vehicle is currently a year 2006 GS 300 in golden Chardonnay Pearl.
  • S R Nathan, the current President of Singapore, preferred limousine was Lexus LS. During every year in National Day Parade, his official limousine was a Mercedes S-Class.
  • After falling on hard times, fictional television/radio personality Alan Partridge drove a Lexus IS, believing it to be a luxury car (referring to it as the "Japanese Mercedes").
  • In January 2007 a Northern California dealership agreed to pay $375,000 to settle a sexual harassment suit. [5]
  • The new ES series is now roughly based on the US Toyota Camry. Because the previously Windom models have no successor.
  • After being discontinued in 1992, the X chassis code for Cressidas was still in use in Japan under the Mark II, Chaser, and Cresta names until the early 2000s.
  • Lexus models formerly sold under the Toyota marque in Japan include the Toyota Windom-based ES 330, the small, sporty, rear-drive IS 200 and IS 300 (based on the Japanese Domestic Market Toyota Altezza), and the GS 300 and GS 430 (sold as the Toyota Aristo). The Lexus LS 400 and LS 430 were previously sold as the Toyota Celsior.
  • In some countries, like Malaysia, New Zealand, Ireland, and the UK, where there is a market in grey imports of Japanese cars, some equivalent Toyota models have been retro-fitted with Lexus badges, although they still differ slightly from officially imported Lexus models, especially in specification and equipment levels.
  • The styling cues of the rear light clusters on the first generation Lexus IS were copied by a number of after-market accessory manufacturers for applications on other vehicles. This iconic style of one or more internal lamp units, covered with a clear (or tinted) perspex cover made popular by Lexus, became known in many circles as 'Lexus-style' lights.
  • In Japanese, the Lexus name is translated as レクサス. The luxury division was launched however with the English name.
  • The distinctive voice in Lexus commercials is James Sloyan, who has been doing voiceover work for the brand since 1989.
  • Coincedentally, the Polish word luksus, which is pronounced very similarly to Lexus, means luxury in the Polish language.

Community contributions

  • Since 1989, the annual Lexus Champions for Charity golf series has raised over $93 million for charity causes. This Lexus-sponsored golf series begins with over 190 golf tournaments held at golf and country clubs around the U.S., and culminates in a three-day championship tournament at Pebble Beach's Spyglass Hill, Spanish Bay, and Pebble Beach Golf Links courses, with $1,000 prize donations at the local level, and multiple prizes at the national level leading up to a $100,000 championship charity purse.
  • Philanthropic efforts by Lexus include vehicle auctions for Adopt-A-Minefield and Cedars-Sinai Medical Center's Road to a Cure, financial backing for the Andy Roddick Foundation, along with teacher grant programs via parent company Toyota. Many Lexus dealerships sponsor community organizations in their local neighborhoods.
  • Since 2002, Lexus has been the presenting sponsor of the Michael Douglas and Friends celebrity golf tournament, which raises health care and community funds for people in need via the Motion Picture & Television Fund.

Lexus sponsorships

  • Lexus GS hybrid at the U.S. Open in Flushing Meadows, NY.
    Lexus has been a primary sponsor of the U.S. Open tennis Grand Slam event since 2005, awarding a GS sedan to the men's and women's singles champions. Lexus also provides exclusive transportation throughout New York City for all players in the event, using a fleet of 125 Lexus vehicles, including hybrids. In 2006, the Lexus U.S. Open fleet drove a total of 101,730 miles in two weeks.
  • Lexus sponsored events include the Lexus Cup golfing event in Singapore, the Lexus Gauntlet collegiate sports competition in Southern California, the Lexus Song Quest singing competition in New Zealand, Lexus Design in Business Awards in New Zealand, the Lexus Inside Film Awards in Australia, and the Lexus European Flyfishing Championships in England.
  • Lexus is an official sponsor of the Hollywood Bowl and Sydney Opera House, along with the Los Angeles Philharmonic and the Philadelphia Orchestra.
  • Lexus has signed endorsement contracts with star athletes Andy Roddick and Annika Sorenstam, and also signed performer Sir Paul McCartney as a proponent of its hybrid vehicle technology.
  • The Lexus Centre, a sports, meeting, and entertainment facility in Melbourne, Australia, was first constructed for the 1956 Summer Olympics.

Historical timeline

  • 1983
    • Toyota Chairman Eiji Toyoda challenges his company to build a luxury flagship to “challenge the world’s best.” This effort becomes known as the F1 project.
  • 1985
    • F1 researchers visit the United States to conduct market research and focus groups on luxury buyers. The first LS 400 prototypes are built.[52]
  • 1986
    • Testing for the new Lexus flagship begins at the autobahn in Germany.[52]
  • 1987
    • Final design of the LS 400 is approved.[52]
  • 1989
    • The LS 400 debuts at the Detroit Motor Show, and goes on sale in September of that year.
  • 1990
    • Car and Driver magazine names the LS 400 one of the Ten Best vehicles of the year. Lexus capture the trifecta of J.D. Power’s Initial Quality, Customer Satisfaction, and Sales Satisfaction studies.[52]
  • 1991
    • Lexus becomes the top-selling import marque in the United States. The ES 300 and SC 400 models are introduced.
  • 1992
    • Motor Trend magazine names the SC 400 its Import Car of the Year.[52]
  • 1993
    • Lexus introduces the GS 300 luxury performance sedan.
  • 1994
    • Lexus introduces the second-generation LS 400 sedan.
  • 1996
    • Lexus introduces the third-generation ES 300 sedan and its first luxury utility vehicle, the LX 450.
  • 1997
    • Lexus introduces the second-generation GS 300 and GS 400 sedans. Motor Trend magazine names the new GS its Import Car of the Year.[52]
  • 1998
    • The RX 300, the world’s first luxury crossover SUV, goes on sale at Lexus dealerships. The RX soon becomes Lexus’ top-selling model.
  • 1999
    • Lexus sells its one-millionth vehicle in the U.S.[52]
  • 2000
    • Lexus introduces the third-generation LS 430 sedan and IS 300 entry sport sedan.
  • 2001
    • Lexus introduces the fourth-generation ES 300 sedan.
  • 2002
    • Lexus introduces its third luxury utility vehicle, the GX 470.
  • 2003
    • The Lexus Development Center is founded in Japan, becoming the headquarters for Lexus' future design efforts.
  • 2005
    • Lexus introduces the third-generation GS 300 and GS 430 mid-size sport sedans, debuting L-Finesse styling. Later that year, Lexus introduces the second-generation IS 220d, IS 250 and IS 350 sport sedans.
    • Top Gear name the IS as the Compact Executive Car of the year, defeating the BMW E90 3-Series.
  • 2006
    • Lexus debuts the LS 600h L, the world’s first production V8 hybrid sedan. The new ES 350 and fourth-generation LS 460/LS 460 L sedans go on sale.
  • 2007
    • At the North American International Auto Show, Lexus launches its dedicated performance division, F-Series, with the unveiling of its first high-performance sedan, the IS-F, and an exotic supercar concept, the LF-A.
    • The Lexus LS 460 flagship is crowned Luxury Car of the Year, Most Respected, and International Car of the Year at the ICOTY Awards.
  • 2008
    • TBA

References

  1. ^ Lexus and Toyota Models Rank Highest
  2. ^ Lexus Ranked First in Predicted Reliability for 2006 Models
  3. ^ a b c d e f g Dawson, Chester. Lexus: The Relentless Pursuit. 2004: Jon Wiley & Sons, NJ.
  4. ^ How Lexus Was Successful in the U.S.
  5. ^ Lexus History timeline
  6. ^ Molly Designs history, Lexus logo design
  7. ^ Hunter Communications, final Lexus logo design
  8. ^ Mahler, Jonathan. The Lexus Story: The Behind the Scenes Story of the #1 Automotive Luxury Brand in America. 2004: DK Melcher Media.
  9. ^ Lexus Earns Best-Selling Luxury Brand Title For Sixth Consecutive Year
  10. ^ Lexus International sites
  11. ^ a b Focus: Lexus brand
  12. ^ Automotive Design & Production - Introducing the '06 IS
  13. ^ Lexus is first to deploy LED-based car headlamps
  14. ^ a b Automotive Design & Production - Lexus Comes Into Its Own
  15. ^ Automotive Industries - The pursuit of higher sales: new Lexus managing officer is on a mission to grow Lexus in the European and Japanese markets
  16. ^ Robot-filled Tahara sets standard for Toyota, world
  17. ^ Toyota, GM Garner Most Awards in 2005 Initial Quality Study
  18. ^ Lexus and Toyota Together Capture 11 of 19 Initial Quality Model Awards
  19. ^ 4Car - Lexus IS environmentally-friendly wood
  20. ^ Is Lexus Sexy Enough To Seduce Europe?
  21. ^ Lexus Magazine - LS Radical Evolution
  22. ^ First Drive: 2007 Lexus LS 460/460L,
  23. ^ Lexus Manufacturing
  24. ^ Luxury battle looming
  25. ^ Lexus airs plans for an eatery, fountains
  26. ^ Lexus Kicks Up Service
  27. ^ The Real Reason To Buy A Lexus
  28. ^ Top Gear Survey 2005
  29. ^ Lexus Ranks Highest in Customer Satisfaction with Dealer Service
  30. ^ Wealthy Rate Lexus #1 in Customer Experience
  31. ^ Lexus Leads in Customer Loyalty
  32. ^ Lexus race report
  33. ^ Future Products – Lexus
  34. ^ What the 2006 Lexus IS is, and isn't
  35. ^ Geneva Motor Show (L-Finesse design)
  36. ^ Lexus Design Exhibition at Milan Design Week
  37. ^ Lexus Marries Art With Design At City Events
  38. ^ a b Toyota's Lexus readies performance division-report
  39. ^ Lexus Confirms “F” Performance Cars
  40. ^ Lexus Sales Sputter at Home
  41. ^ Lexus Magic Fails to Capture Europeans
  42. ^ How Lexus Was Successful in the U.S.
  43. ^ The Secret of Success of Mercedes-Benz, BMW, Porsche and Audi
  44. ^ A warning for German makers from the customers
  45. ^ Lexus Ranks Highest in Customer Satisfaction for a Sixth Consecutive Year
  46. ^ A Lexus Aimed at Mercedes' S-Class
  47. ^ Europe's Car Market: The '06 Report Card
  48. ^ Lexus, Mercedes Drive Past BMW in Sales
  49. ^ Lexus #1 Luxury Import in Taiwan
  50. ^ Lexus at Australian International Motor Show
  51. ^ Lexus targets 500,000 units for 2007
  52. ^ a b c d e f g Lexus History (timeline)

See also