Lexus

Lexus is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. Lexus brand name vehicles are sold in North America, Europe, Asia, the Middle East, Oceania, Africa, and Latin America; in the United States, Lexus is the highest-selling make of luxury cars. In 2005, the Lexus marque launched in Japan, marking the continued global expansion of the luxury division. Since its debut in 1989, Lexus has developed a reputation for the luxury and reliability of its vehicles, along with the quality of its customer service. In 2007, 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 53,000 vehicle owners and the problems they experienced in the first three years of vehicle ownership. It was the thirteenth consecutive year that Lexus achieved this top rating.In recent years, Consumer Reports has also named Lexus among the top five most reliable brands in its Annual Car Reliability Surveys of over one million vehicles nationwide.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 their ratings since the entry of the luxury division, with reliability and quality among the main selling points of Lexus around the world.

History

The origins of Lexus

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”). 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.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. 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

In 1986, Toyota’s longtime advertising agency Saatchi & Saatchi formed a specialized unit, Team One, to handle marketing for the new luxury brand. 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, although Lexus in Australia claim the original name is short for Luxury Export to United States. (LExUS).

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 original Lexus slogan, developed after Team One representatives visited Lexus designers in Japan and noted their obsessive attention to detail, became "The Relentless Pursuit of Perfection."

The Lexus logo was developed by Molly Designs and Hunter Communications. The final design for the Lexus logo featured a stylized “L” within an oval, and according to Toyota was rendered using a precise mathematical formula.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.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.

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 some 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.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 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. In 1998, Lexus debuted the first luxury crossover SUV, the RX 300.

Lexus today

Lexus has grown to become the top-selling automotive luxury brand in the United States. In 2006, Lexus sold 322,434 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 largest automotive market for the past seven years.Lexus vehicles are now available in over forty countries across the Americas, Europe, Asia, and Oceania,and the Lexus marque ranks as the fourth-largest luxury car brand in the world by volume. Lexus was finally introduced to the Japanese market on July 26, 2005, ending domestic sales of Lexus-similar models under separate brands. The compact IS sedans, convertible SC, and mid-size GS sedans 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 adds both standard and long wheelbase versions (LS 460 and LS 460 L), along with greater luxury and technological appointments than previous models, including an automated parallel/reverse parking feature. The LS 460 was awarded International Car of the Year and World Car of the Year in 2007.

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 other luxury brands, such as Audi, BMW, Jaguar, Mercedes-Benz, Porsche, Saab, and Volvo in Europe, Cadillac and Lincoln in the US, and Acura, and Infiniti in Japan.

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 with a V6 gas-electric powertrain and rear-wheel drive. In 2007, Lexus launched the LS 600h and LS 600h L hybrid versions of its LS flagship series, featuring V12 power and torque with conventional V8 fuel economy and emissions. 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, Lexus F-Sport, which would produce racing-inspired versions of its luxury performance vehicles. The first F-Sport vehicle, the IS-F, made its debut at the 2007 North American International Auto Show, accompanied by an exotic supercar concept, the LF-A. The Lexus F-Sport line is designed to compete with the high-performance, motorsport-derived lineups of the leading European and American luxury brands. The IS-F debuted with a 5.0 liter V8 engine generating over 400 hp, along with numerous performance enhancements. Detailed specifications for the LF-A have yet to be released.

In the U.S. and Canada, the full Lexus model range is sold, including almost all gasoline- and hybrid-powered variants. The hybrid flagship LS 600h L is offered in the U.S. and Canada, while the LS 600h and LS 600h L are both offered in Europe, Japan, and other countries. 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. In recent years, Lexus has broadened its model range internationally as part of its ongoing global expansion, with new vehicle launches in Europe and Asia.

Current models

IS - entry-level luxury car RWD/AWD

2008 IS 250/IS 250 AWD/IS 350/IS 220d

ES - mid-size FWD

2008 ES 350

GS - mid-size RWD/AWD

2008 GS 350/GS 350 AWD/GS 460/GS 450h

LS - full-size RWD/AWD

2008 LS 460/LS 460 L

2008 LS 600h/LS 600h L

SC - coupé/coupé convertible RWD

2008 SC 430

RX - mid-size crossover SUV

2008 RX 350/RX 400h

GX - mid-size sport utility vehicle

2008 GX 470

LX - full-size sport utility vehicle

2008 LX 570

Future of Lexus

Future vehicles

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

Reports in Road and Track indicate that the LF-A coupe concept has been approved for production, potentially designated as the 2009 GT 450. Autoweek has also reported that the LF-X crossover concept will appear as the forthcoming JX SUV.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.

Lexus Managing Officer, Takeshi Yoshida, has also stated Lexus' intentions to produce future production models using more dedicated Lexus platforms,as is the case for the LS flagship. The entry-level Lexus ES, in particular, had been chided for being too similar to the Toyota Camry, its shared platform cousin, in both styling and powertrain design.Besides a convertible version of the IS, new Lexus models also in development reportedly include an SUV sized below the RX and dedicated hybrids.The third generation successor for the SC 430 coupe is planned for a more distant date.

Hybrid drivetrains

According to division executives, Lexus plans to introduce Lexus Hybrid Drive on every vehicle in the Lexus lineup.The impetus for the expansion of Lexus hybrid technology involves the convergence of environmental concern and commercial success; the recent addition of hybrid models to the current Lexus lineup (including the RX 400h, GS 450h, and LS 600h) has driven sales increases in environmentally-conscious markets. In the United Kingdom, one out of every four Lexus vehicles sold in 2006 was a hybrid, with the GS 450h and RX 400h having sold more units than their petrol counterparts. In 2006, 80% of all RX models sold in Europe were of the hybrid model.Politicians in the UK (such as David Cameron, leader of the Conservative Party) have endorsed Lexus by using lower-emission Lexus GS 450h vehicles in place of British-built Jaguars or Land Rovers. Various UK government agencies also use the GS 450h and RX 400h.The London congestion charge has excluded hybrid vehicles, adding incentive to Lexus hybrids. In Ireland, cabinet members (including Dick Roche, Minister for the Environment) have switched to GS 450h models;[84] in Monaco, Prince Albert II (of the royal House of Grimaldi) purchased an LS 600h and advocated hybrid tax credits.The advent of Lexus hybrid technology is touted by Lexus officials as a strategy for raising the profile of Lexus in countries with greater public perception of the Mercedes-Benz, Audi, BMW and Jaguar rival brands.

In 2007, Lexus Group VP Jim Farley revealed plans for a possible high-mileage, low emissions hybrid focused on efficiency, a rechargeable hybrid with electric range, and a "high performance hybrid" designed to appeal to performance enthusiasts.The efficiency-focused hybrid would cater to demands for a decrease in both carbon pollution and oil reliance. At present, Lexus hybrids are designed around a balance of increased performance along with improved efficiency and emissions.

Global ambitions

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 initially exhibited slower than expected sales.The introduction of the LS 460 in September 2006, however, led to over 12,000 orders in its first month--several times expectations, and more robust sales were seen that year.[88] Meanwhile, Lexus sales remain focused on the US market. In 2006, two-thirds of total global Lexus sales of 475,000 units came from the United States, followed in size by Japan, the UK, China, Canada, and Russia.Lexus launched in China in 2006 and Malaysia in 2007.

With regards to the European market, where Lexus has a less developed dealership network, smaller brand recognition, and minor market share,] automotive analysts have pointed to a difference between U.S. and European customers, suggesting that Lexus has been successful in North America because the wide consumer base of Toyota (especially baby boomers) desired luxury cars as they were becoming older and their surplus incomes allowed them to migrate to upscale brands. The success of Lexus in the U.S. was attributed to higher levels of perceived quality and lower prices than competitors, which enabled it to retain previously migrating customers.In Europe, this may have had repercussions as Lexus cultivated a value-priced brand image, causing slow acceptance in the European arena due to differences in perceived value. This has led some automotive thinkers to believe that Lexus must price its products head-to-head with the European premium brands and emphasize its quality, reliability and engineering in order to succeed globally.

Additionally, automotive analysts have noted Lexus' relative newcomer status in the luxury market, compared with the storied reputation of its European rivals, as a limiting factor for its initial sales acceptance in worldwide markets. Rivals Mercedes-Benz, BMW, and Porsche have stressed their decades of heritage and pedigree in an effort to promote their products,[90] whereas since its inception Lexus' reputation rests primarily upon its perceived product quality and the shared history of its parent company, Toyota.The characteristics of heritage,built up over many years, and pedigree, are regarded by some reviewers as a challenge for Lexus, although their impact is debated.Ultimately, a number of analysts have stated that Lexus will have to develop its own heritage over time by investing in technological innovations and producing substantial products.

Lexus has recently embarked upon a global expansion strategy, an effort which began with the receipt of added organizational independence from its parent company in 2005.As part of this effort, Lexus has begun expanding its dealership networks in Europe and Asia, with dedicated new facilities and an increased advertising expenditure. Meanwhile, quality levels of European brands have seemingly declined,while Lexus continues to score highly on such reports.Luxury buyers and high-profile owners have switched to Lexus vehicles due to their more dependable reputation.Also, in order to attract European buyers, diesel engines have been added to the lineup (starting with the IS 220d), the F-Sport performance division has been launched (with the IS-F), and with related versions of the Lexus LF concept cars making it into production, Lexus is quickly beginning to re-invent itself as a global luxury brand. The latest Lexus models have also moved up in sticker price to more closely match their European rivals;[98] the LS 600h L has become the most expensive luxury vehicle ever produced in Japan with an ultra-luxury sticker price of approximately $125,000.In 2007, Lexus entered Interbrand's list of the Top 100 Global Brands for the first time, with an estimated brand value of approximately $3 billion annually.

In the United Kingdom, the largest European market for Lexus, the IS series accounts for the largest number of new Lexus sales (the largest proportion increasing with sales of the new IS 220d).Along with a sales shift towards Lexus hybrids, the second generation IS, which emerged in 2006 as an alternate choice to the dominant German and British marques' compact executive cars, has since become a primary player for Lexus' efforts in Europe. With Lexus sales increasing in the UK due to the introduction of the new IS series, LS flagship, and GS/RX hybrids, Lexus has emerged as a European second-tier luxury brand with substantial growth potential. Total Lexus Europe sales increased 72% in 2006 to over 50,000 vehicles, making Lexus one of the fastest growing makes on the continent.

Lexus vehicles in Russia and China are experiencing high demand, with higher per-dealership sales than any other market.In South Korea, with sales of the ES 350 spearheading its efforts, Lexus has been the top-selling luxury import since 2005;in Taiwan, Lexus also became the top-selling luxury import in 2005.In Australia, Lexus experienced high sales growth and ranked third in overall luxury import sales in 2006, with the IS model generating high demand. In 2007, Lexus sales captured the lead in the emerging Chinese luxury car market. Total worldwide Lexus sales were forecast to reach 500,000vehicles in 2007.

Popular culture

Several of Lexus' ideas on the future of automotive design have appeared on film. In 2002, 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.[110] Designers working with Lexus came up with an advanced vehicle which would run on fuel cells and have many advanced safety features including a crash-proof structure and biometric security systems. (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.The Lexus 2054 later appeared at several auto shows and public events.

The term "the Lexus of..." has also entered the cultural lexicon as a description of a high-end product, or an upscale brand produced by a mainstream manufacturer. For example, in 2006 Dell announced a premium lineup of computers, calling it "the Lexus of our lineup."Further example comparisons include "the Lexus of phones" or "the Lexus of video...", among others. Late night comedian Jay Leno first coined the term "Lexus-ized" for his automotive columns in Popular Mechanics, an expression generally used to describe the Lexus approach to luxury motoring.Despite the official pluralized form of Lexus being simply Lexus, the public has also made its own derivatives (the most popular derivative being 'Lexi').The New York Times columnist Thomas Friedman cited Lexus as an example of the drive for prosperity and development in his best-selling 1999 book, The Lexus and the Olive Tree.

In the UK, the LS 430 flagship was introduced in the BBC spy drama, Spooks; Lexus models were also placed on ITV's Coronation Street, the BBC's Judge John Deed, and other programs.Lexus GB models saw sales increases after being seen on ITV's Footballers' Wives.In 2002, comedian Steve Coogan's fictional BBC Alan Partridge character replaced his Rover with an IS 200, calling it the "Japanese Mercedes" and one of many "Lexi"; his superficial character was seen as detrimental to the brand's image.By 2004, multiple hip-hop artists made mention of Lexus vehicles in their songs, an endorsement which Top Gear host Jeremy Clarkson suggested added street credibility for the brand.

The introduction of Lexus hybrids have garnered further media attention through celebrity RX 400h owners such as Dustin Hoffman, Diane Keaton, and Holly Hunter, who were among the earliest adopters of the Lexus Hybrid Drive technology.Hollywood luminaries are also among the buyers for the GS 450h and LS 600h L hybrid performance sedans, with early release examples appearing at celebrity events.

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 F1project.

1985

F1 researchers visit the United States to conduct market research and focus groups on luxury buyers. The first LS 400 prototypes are built.

1986

Testing for the new Lexus flagship begins at the autobahn in Germany.

1987

Final design of the LS 400 is approved.

1989

The LS 400 debuts at the Detroit Motor Show, and goes on sale in September of that year alongside the entry-level ES 250 sedan.

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.

1991

Lexus becomes the top-selling import marque in the United States. The SC 300, SC 400 and ES 300 models are introduced.

1992

Motor Trend magazine names the SC 400 its Import Car of the Year.

1993

Lexus introduces the GS 300 and GS 400 luxury performance sedans.

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.

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.

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 named 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-Sport, 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, and is also named World Car of the Year at the WCOTY Awards.

The LS 600h and LS 600h L go on sale worldwide.

2008

Lexus releases the third generation LX 570. Expect the Lexus IS-F in early 2008.

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