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Wikipedia

Lexus

Lexus (レクサス, Rekusasu) is the luxury vehicle division of the Japanese automaker Toyota. The Lexus brand is marketed in more than 90 countries and territories worldwide[3][6] and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese global brands in market value.[7] Lexus is headquartered in Nagoya, Japan. Operational centers are located in Brussels, Belgium, and Plano, Texas, United States.

Lexus
TypeDivision
IndustryAutomotive
Founded1989; 34 years ago (1989)[1]
FounderEiji Toyoda
HeadquartersNagoya, Japan
Area served
Worldwide
Key people
Koji Sato (President)[2]
David Nordstrom (VP, Asia Pacific)[3]
Spiros Fotinos (VP, EU)[4]
Andrew Gilleland (VP, U.S.)[5]
ProductsLuxury vehicles
Performance vehicles
BrandsF marque
ServicesAutomotive financing
ParentToyota
WebsiteOfficial sites
(select by country)

Created at around the same time as Japanese rivals Honda and Nissan created their Acura and Infiniti luxury divisions respectively, Lexus originated from a corporate project to develop a new premium sedan, code-named F1, which began in 1983 and culminated in the launch of the Lexus LS in 1989.[8] Subsequently, the division added sedan, coupé, convertible and SUV models. Lexus did not exist as a brand in its home market until 2005, and all vehicles marketed internationally as Lexus from 1989 to 2005 were released in Japan under the Toyota marque and an equivalent model name. In 2005, a hybrid version of the RX crossover debuted and additional hybrid models later joined the division's lineup. Lexus launched its own F marque performance division in 2007 with the debut of the IS F sport sedan, followed by the LFA supercar in 2009.

Lexus vehicles are largely produced in Japan, with manufacturing centered in the Chūbu and Kyūshū regions, and in particular at Toyota's Tahara, Aichi, Chūbu and Miyata, Fukuoka, Kyūshū plants. Assembly of the first Lexus produced outside the country, the Canadian-built RX 330, began in 2003. Following a corporate reorganization from 2001 to 2005, Lexus began operating its own design, engineering and manufacturing centers.

Since the 2000s, Lexus has increased sales outside its largest market, the United States. The division inaugurated dealerships in the Japanese domestic market in 2005, becoming the first Japanese premium car marque to launch in its country of origin.[9] The brand has since debuted in Southeast Asia, Latin America, Europe and other regions, and has introduced hybrid vehicles in many markets.

History

1980s: The F1 project

The Lexus brand was created around the same time as Japanese rivals Nissan and Honda developed their Infiniti and Acura premium brands. The Japanese government imposed voluntary export restraints for the U.S. market, so it was more profitable for Japanese automakers to export more expensive cars to the U.S.

In 1983, Toyota chairman Eiji Toyoda issued a challenge to build the world's best car.[10] The project, code-named F1 (“Flagship One”)[11] developed the Lexus LS 400 to expand Toyota's product line in the premium segment.[12] The F1 project followed the Toyota Supra sports car and the premium Toyota Mark II models.[13] Both the Supra and Mark II were rear-wheel drive cars with a powerful 7M-GE or 7M-GTE inline-six engine. The largest sedan Toyota built at the time was the limited-production, 1960s-vintage Toyota Century, a domestic, hand-built limousine, and V8-powered model,[14] followed by the inline-six-engined Toyota Crown premium sedan.[14][15] The Century was conservatively styled for the Japanese market and along with the Crown not slated for export after a restyle in 1982.[15] The F1 designers targeted their new sedan at international markets and began development on a new V8 engine.[14][15]

Japanese manufacturers exported more expensive models in the 1980s due to voluntary export restraints negotiated by the Japanese government and U.S. trade representatives that restricted mainstream car sales.[16] In 1986, Honda launched its Acura marque in the U.S., influencing Toyota's plans for a luxury division.[17] The initial Acura model was an export version of the Honda Legend, itself launched in Japan in 1985 as a rival to the Toyota Crown, Nissan Cedric/Gloria and Mazda Luce.[18] In 1987, Nissan unveiled its plans for a premium brand, Infiniti,[19] and revised its Nissan President sedan in standard wheelbase form for export as the Infiniti Q45, which it launched in 1990.[20] Mazda began selling the Luce as the Mazda 929 in North America in 1988 and later began plans to develop an upscale marque to be called Amati, but its plans did not come to fruition.[19]

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market research on luxury consumers.[21] During that time, several F1 designers rented a home in Laguna Beach, California, to observe the lifestyles and tastes of American upper class consumers.[21] Meanwhile, F1 engineering teams conducted prototype testing on locations ranging from the German autobahn to U.S. roads.[22] Toyota's market research concluded that a separate brand and sales channel were needed to present its new sedan, and plans were made to develop a new network of dealerships in the U.S. market.[23]

Brand development

In 1986, Toyota's longtime advertising agency Saatchi & Saatchi formed a specialized unit, Team One, to handle marketing for the new brand.[17] 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.[24] While Alexis quickly became the front runner, concerns were raised that the name applied to people more than cars (being associated with the Alexis Carrington character on the popular 1980s prime time drama Dynasty).[24][25] As a result, the first letter was removed and the "i" replaced with a "u" to morph the name to Lexus.[25]

 
1989 LS 400 sedan was the first Lexus model.

Theories of the etymology of the Lexus name have suggested it is the combination of the words "luxury" and "elegance,"[26] and that it is an acronym for "luxury exports to the U.S."[26] According to Team One interviews, the brand name has no specific meaning and simply denotes a luxurious and technological image.[24] Prior to the release of the first vehicles, database service LexisNexis obtained a temporary injunction forbidding the name Lexus from being used because it might cause product confusion.[27] The injunction threatened to delay the division's launch and marketing efforts.[27] The U.S. appeals court lifted the injunction, deciding that there was little likelihood of confusion between the two products.[27]

The original Lexus slogan, developed after Team One representatives visited Lexus designers in Japan and noted an obsessive attention to detail, became "The Relentless Pursuit of Perfection."[28] Three firms were involved in the final phase of logo development: Saatchi & Saatchi, Molly Designs and Hunter/Korobkin, Inc.[29] The finished logo was a combination of two firms’ final designs: the Lexus logo typeface came from Saatchi & Saatchi and the “L” was Hunter/Korobkin, Inc.’s design. According to Toyota, the automaker made some refinements so the logo would be easier to manufacture, rendering it using a mathematical formula.[30][24] The first teaser ads featuring the Lexus name and logo appeared at the Chicago, Los Angeles and New York auto shows in 1988.[31]

Launch

The F1 project was completed in 1989, involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, approximately 450 prototypes and more than $1 billion in costs.[32] The resulting car, the Lexus LS 400, had a design that shared no major elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-wheel drive.[33][34] The car debuted in January 1989 at the North American International Auto Show in Detroit[19] and official sales of the vehicle began the following September at a network of 81 new Lexus dealerships in the U.S.[35] The LS 400 was sold along with the smaller ES 250, a rebadged version of the Japanese market Toyota Camry Prominent/Toyota Vista.[22] The launch of Lexus was accompanied by a multimillion-dollar advertising campaign.[36]

 
1991 SC 400 was the third Lexus model and first coupe.

The LS 400 was praised for its quietness, well-appointed and ergonomic interior, engine performance, build quality, aerodynamics, fuel economy and value.[22][37] However, it was criticized by some automobile columnists for derivative styling and a suspension regarded as too compromising of handling for ride comfort.[22][38] In some markets it was priced against mid-size, six-cylinder Mercedes-Benz and BMW models.[39] It was rated by Car and Driver magazine as better than the higher-priced Mercedes-Benz 420 SEL and BMW 735i in terms of ride, handling and performance.[40] The LS 400 also won motoring awards from automotive publications including Automobile Magazine and Wheels Magazine.[41][42] Lexus quickly established customer loyalty and its debut was generally regarded as a shock to existing luxury marques. BMW's and Mercedes-Benz's U.S. sales figures dropped 29 percent and 19 percent, respectively, with BMW executives accusing Lexus of dumping in that market, while 35 percent of Lexus buyers traded in a Lincoln or Cadillac.[40]

In December 1989, Lexus initiated a voluntary recall of all 8,000 LS 400s based upon two customer complaints over defective wiring and an overheated brake light.[40] A 20-day operation to replace the parts on affected vehicles included technicians to pick up, repair and return cars to customers free of charge, and also flying personnel and renting garage space for owners in remote locations.[40] This response was covered in media publications and helped establish the marque's early reputation for customer service.[43][44]

By the end of 1989, a total of 16,392 LS 400 and ES 250 sedans were sold in the four months following the U.S. launch.[45] Although sales had begun at a slower pace than expected, the final tally matched the division's target of 16,000 units for that year.[46] Following initial models, plans called for the addition of a sports coupe along with a redesigned ES sedan.[47]

1990s: Growth and expansion

 
1998 RX 300, first Lexus crossover SUV

In 1990, during its first full year of sales, Lexus sold 63,594 LS 400 and ES 250 sedans in the U.S.,[48] the majority being the LS model.[48] That year, Lexus also began limited exports to the United Kingdom, Switzerland, Canada and Australia.[22][49] In 1991, Lexus launched its first sports coupe, the SC 400, which shared the LS 400s V8 engine and rear-wheel drive design.[47] This was followed by the second generation ES 300 sedan, which succeeded the ES 250 and became Lexus' top seller.[47] At the conclusion of 1991, Lexus had become the top-selling premium car import in the U.S.,[50][51] with sales reaching 71,206 vehicles.[48] That year, Lexus ranked highest in J.D. Power and Associates' studies on initial vehicle quality, customer satisfaction and sales satisfaction for the first time.[52] The marque also began increasing U.S. model prices past those of comparable American premium makes, but still below high-end European models.[51] By 1992, the LS 400's base price had risen 18 percent.[53]

In 1993, Lexus launched the mid-size GS 300 sports sedan, based on the Toyota Aristo using the Toyota "S" platform from the Toyota Crown, which had sold for two years prior in Japan.[47] The GS 300 was priced below the LS 400 in the marque's lineup.[54] That same year, Lexus became one of the first marques to debut a certified pre-owned program, with the aim of improving trade-in model values.[55] The marque introduced the second generation LS 400 in 1994.[56] In May 1995, sales were threatened by the U.S. government's proposal of 100 percent tariffs on upscale Japanese cars in response to the widening U.S.-Japan trade deficit.[57] SUVs were exempt from the proposed sanctions.[58] Normal sales operations resumed by late 1995 when the Japanese auto manufacturers collectively agreed to greater American investments and the tariffs were not enacted.[57]

 
ES 300 was the best-selling Lexus sedan in the 1990s.

In 1996, Lexus debuted its first sport utility vehicle, the LX 450,[59] followed by the third generation ES 300 sedan, and the second generation GS 300 and GS 400 sedans in 1997. The marque's plans for developing an SUV model had accelerated during the U.S.-Japan tariff discussions of 1995.[58] Lexus added the first luxury-branded crossover SUV, the RX 300 in 1998. The RX crossover targeted suburban buyers who desired an upmarket SUV but did not need the LX's off-road capability.[60] It was particularly successful, eventually becoming the marque's top-selling model ahead of the ES sedan.[60] The same year, Lexus made its debut in South America's most populous country when it launched sales in Brazil.[61][62] In 1999, the IS was introduced, an entry-level sport sedan. Lexus also recorded its 1 millionth vehicle sold in the U.S. market,[50] being ranked as the top-selling premium car maker in the U.S. overall.[60]

2000s: Global reorganization

 
2004 RX 400h, first hybrid version of Lexus' best-selling vehicle

In July 2000, Lexus introduced the IS 300 in North America, following global launch in 1999 (as the IS 200) and the third generation LS 430. In 2001, the first convertible was introduced, as well as the SC 430 and a redesigned ES 300.[63] The GX 470 mid-size SUV debuted in 2002, followed by the second generation RX 330 in 2003.[64] The following year, Lexus recorded its 2 millionth U.S. vehicle sale,[65][66] and the first luxury-branded production hybrid SUV, the RX 400h.[67] This vehicle used Toyota's Hybrid Synergy Drive system that combined gasoline and electric motors.[68]

In 2005, Lexus completed an organizational separation from parent company Toyota,[69] with dedicated design, engineering, training, and manufacturing centers working exclusively for the division.[70][71] This effort coincided with Lexus' launch in its home market of Japan and an expanded global launch of the brand in markets such as China.[71][72] Executives aimed to increase Lexus sales outside of its largest market in the U.S.[71][73] To accompany this expansion, next generation Lexus vehicles were redesigned as "global models" for international release.[74] In the European market, where Lexus had long faced struggling sales owing to low brand recognition, few dedicated dealerships, and 1990s import quotas,[75][76] the marque announced plans to introduce hybrid and diesel powertrains,[77] increase the number of Lexus dealerships, and expand operations in emerging markets such as Russia.[78][79]

 
2006 Lexus IS, second generation with F marque variant in 2007

Lexus' arrival in the Japanese market in July 2005 marked the first introduction of a Japanese premium car marque in the domestic market.[9] New generation LS, IS, ES, GS, and RX models subsequently became available in Japan along with the SC 430, ending domestic sales of Toyota-branded models under the Celsior, Altezza, Windom, Aristo, Harrier, and Soarer nameplates, respectively. The Altezza and Aristo were previously exclusive to Japanese Toyota retail sales channels called Toyota Vista Store, the Windom was exclusive to Toyota Corolla Store, the Celsior and Harrier were exclusive to Toyopet Store, and the Soarer was previously available at both Toyota Store and Toyopet Store locations.[80][81] Lexus models sold in Japan featured higher specifications and a price premium compared with their discontinued Toyota counterparts.[80] Sales for the first half-year were slower than expected,[82] affected by the contraction of the domestic auto market and price increases,[83] but improved in subsequent months with an expanded lineup.[83][84]

Through the mid-2000s, Lexus experienced sales successes in South Korea and Taiwan, becoming the top-selling import make in both markets in 2005;[85][86] the marque also sold well in the Middle East, where it ranked first or second among rivals in multiple countries,[87] and in Australia, where Lexus reached third in luxury car sales in 2006.[88][89] Division executives in 2006 announced an expansion goal from 68 countries to 76 worldwide by 2010.[90] By the end of the decade, this expansion resulted in official launches in Malaysia and South Africa in 2006,[91][92] Indonesia in 2007,[93] Chile in 2008,[94][95] and the Philippines in 2009.[96]

Hybrids and F models

In 2006, Lexus began sales of the GS 450h, a V6 hybrid performance sedan,[97] and launched the fourth generation LS line, comprising both standard- and long-wheelbase V8 (LS 460 and LS 460 L) and hybrid (LS 600h and LS 600h L) versions.[98] The fifth generation ES 350 also debuted in the same year. The LS 600h L subsequently went on sale as the most expensive sedan ever produced in Japan.[99] By the end of 2006, Lexus' annual sales had reached 475,000 vehicles worldwide.[100] In January 2007, Lexus announced a new F marque performance division, which would produce racing-inspired versions of its performance models. The IS F, made its debut at the 2007 North American International Auto Show,[101] accompanied by a concept car, the LF-A.

 
2006 GS 450h, first rear-wheel-drive hybrid

In October 2007, Lexus entered the Specialty Equipment Market Association show in the U.S. for the first time with the IS F, and announced its F-Sport performance trim level and factory-sanctioned accessory line.[102] Increased emphasis on sporty models was an effort to target rivals from Mercedes-Benz's AMG and BMW's M divisions.[101][103] Models such as the SC 400 and GS 400 had received favorable reactions from sport luxury buyers,[104] most Lexus models had been characterized as favoring comfort over sporty road feel and handling, compared with European rivals.[105] By the end of 2007, Lexus annual worldwide sales had surpassed 500,000 vehicles,[106] and the marque ranked as the top-selling premium import in China for the first time.[107] The largest sales markets in order of size for 2007 were the U.S., Japan, the UK, China, Canada, and Russia.[100][108]

In 2008, amidst the late-2000s recession and a weakened world car market, global sales fell 16 percent to 435,000,[109][110][111] with declines in markets such as the U.S. and Europe where deliveries fell by 21 percent and 27.5 percent, respectively.[112][113] In 2009, the marque launched the HS 250h,[114] a dedicated hybrid sedan for North America and Japan, the RX 450h, the second generation hybrid SUV replacing the earlier RX 400h, and later that year debuted the US$375,000 production LFA exotic coupe.[115] In late 2009, citing higher sales of hybrid models over their petrol counterparts,[116][117] Lexus announced plans to become a hybrid-only marque in Europe.[118] By the end of the decade, Lexus ranked as the fourth-largest premium car make in the world by volume,[119] and was the number one selling premium car marque in the U.S. for 10 consecutive years.[111][119][120]

2010s–2020s: Recent developments

 

In 2010, Lexus underwent a gradual sales recovery in North America and Asia as the marque focused on adding hybrids and new model derivatives.[87] Sales in the U.S. held steady despite the 2009–2010 Toyota vehicle recalls, several of which included Lexus models.[121] The ES 350 and certain IS models were affected by a recall for potentially jamming floor mats,[121] while parent company Toyota bore the brunt of negative publicity amid investigations over its series of product recalls and problem rates per-vehicle.[121][122] The redesigned GX 460 was also voluntarily recalled in April 2010 for a software update, one week after Consumer Reports issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow stability control response to a high-speed emergency turn.[123] Although the publication knew of no reported incidents, the GX 460 received updated stability control software.[123]

In late 2010 and early 2011, Lexus began sales of the CT 200h, a compact four-door hybrid hatchback designed for Europe, in multiple markets.[124][125] Sales of lower-displacement regional models were also expanded, beginning with the ES 240 in China followed by the RX 270; Japan, Russia, and Taiwan were among markets which received model variants intended for reduced emissions or import taxes.[126][127] In March 2011, the Tōhoku earthquake and tsunami caused severe disruption to Lexus' Japan-based production lines, hindering the marque's near-term sales prospects.[128] Lexus' U.S. executives stated that due to vehicle shortages amidst close competition from BMW, Mercedes-Benz, and Audi, the marque would not remain the country's top-selling premium car brand.[128]

 
2010 CT 200h, first Lexus hatchback

Cumulative sales results for 2011 indicated a 14 percent sales drop in the U.S. market,[129] along with sales increases of 40 percent and 27 percent in Europe and Japan respectively,[130][131] for a global sales total of 410,000 units.[132] Lexus' streak of 11 consecutive years as the best-selling luxury marque in the U.S. ended that year, with the title going to BMW followed by Mercedes-Benz.[133] While 45 percent of Lexus sales in the U.S. in 2011 relied upon the RX luxury crossover SUV, rival Mercedes-Benz's best-selling offering was the E-Class mid-luxury sedan, which commands considerably higher prices.[134] Subsequently, Toyota chairman Akio Toyoda vowed to restore passion to the marque and further increase its organizational independence, admitting that "...back then we did not regard Lexus as a brand, but as a distribution channel". As a result of Toyoda's organizational changes, Lexus senior managers report directly to the chairman for the first time in the marque's history.[133][134]

In January 2012, the marque began sales of the fourth generation GS line, including GS 350 and GS 450h variants, as well as a lower-displacement GS 250 model for select markets.[135] In April 2012, the sixth generation ES line, including ES 350 and ES 300h variants, debuted at the New York International Auto Show.[136]

In April 2014, Lexus unveiled the five-seater NX crossover. The vehicle features a very first for a Lexus vehicle: a turbocharger. Its nomenclature is denoted as the 200t. In August 2014, Toyota announced it would be cutting its Lexus spare parts prices in China by up to 35 percent. The company admitted the move was in response to a probe foreshadowed earlier in the month by China's National Development and Reform Commission of Lexus spare parts policies, as part of an industry-wide investigation into what the Chinese regulator considers exorbitantly high prices being charged by automakers for spare parts and after-sales servicing.[137]

 
2018 Lexus LS 500h

In March 2016, Lexus announced that it will be producing a new flagship vehicle: the two-door LC 500. The vehicle will be produced for late 2017 in a V8 version putting out 467 horsepower. The LC 500h, a V6 hybrid variant, could potentially become available in late 2017 or early 2018.

In April 2019, Lexus announced that a rebadged limousine version of the third-generation Alphard would be sold as the Lexus LM.[138] It was also announced that Lexus would finally enter the market in Mexico in 2021 with some of the vehicles in their lineup.[139] In October 2019, Lexus announced that it will be launching the brand's first all-battery electric vehicle in 2020.[140]

Corporate affairs

Total sales and production
Regional sales, 2011 Units
Japan[131] 42,365
China[141] 56,303
Europe[130] 43,637
United States[129] 198,552
Type production, 2010 Units
Passenger vehicles 205,070
Crossover SUVs 159,560
Hybrid vehicles 66,226
Line production, 2010 Units
Japan production[142] 283,012
Canada production[143] 81,618
Total 364,630

Operations

Lexus International coordinates the worldwide operations of Toyota's luxury division[144][145] from the brand's global headquarters, located in Nagoya, Aichi.[146][144] Corporate entities further include the brand's Japan Sales and Marketing and global Product and Marketing Planning divisions.[145][147] While organizationally separate from its parent company, Lexus International reports directly to Toyota chief executive officer Akio Toyoda.[132] In the U.S., brand operations are managed by the U.S. Lexus division, which is headquartered in Plano, Texas.[148] In Europe, Lexus operations are managed by Lexus Europe, located in Brussels.[149] Companion design facilities are located in Southern California[150] and central Japan,[151] with the head design studio devoted entirely to Lexus models in Toyota City, Aichi.[151][152]

Lexus sales operations vary in structure by region. In many markets, such as the U.S., the dealership network is a distinct organization from corporate headquarters,[128] with separately owned and operated Lexus showrooms.[153] By contrast, in Japan all 143 dealerships in the country are owned and operated by Lexus.[83] Several markets have a designated, third party regional distributor; for example, in the United Arab Emirates, sales operations are managed by Al-Futtaim Motors LLC,[87] and in Costa Rica, Lexus vehicles are sold via regional distributor Purdy Motors S.A.[154] Other officially sanctioned regional distributors have sold Lexus models prior to the launch of, or in absence of, a dedicated dealership network.[92]

The Lexus brand launched in the Indian market in 2017,[155] with the models RX450h, LX450d, LX570, ES300h,[156] NX, LS.[157] Dealerships in Mumbai, Delhi, Gurgaon, and Bangalore became operational in March 2017, when the brand began sales in India with a second set of dealerships opening in Chandigarh, Kochi, and Chennai toward the end of 2017.[156] This made Lexus the fifth luxury brand to be launched in India, after Mercedes-Benz, Porsche, BMW, and Audi.

Sales

Global sales of Lexus vehicles reached an all-time high in 2007, with a total of 518,000. Sales decreased in subsequent years due to the effects of the 2008 recession and the Japanese tsunami of 2011. Following this, sales recovered and reached a new high of 523,000 in 2013.[158]

In 2014, the Lexus brand set a new global sales record after selling 582,000 vehicles. This made Lexus the fourth best selling luxury brand in the world, trailing BMW, Audi and Mercedes-Benz.[159]

 
Fuji Lexus College, training facility for dealers in Shizuoka, Japan

Global sales of Lexus vehicles increased by 12 percent in 2015 to reach another annual sales record with 652,000 units sold worldwide.[160]

Global cumulative sales of Lexus brand hybrid electric cars reached the 500,000 mark in November 2012.[161] The 1 million sales milestone was achieved in March 2016.[162] The Lexus RX 400h/RX 450h ranks as the top selling Lexus hybrid with 335,000 units delivered worldwide as of March 2016, followed by the Lexus CT 200h with 267,000 units.[162]

Lexus has not sold as well in Europe, where it suffers from smaller brand recognition, image, and a less-developed dealership network.[163] In European markets, the Lexus LS has ranked behind Jaguar, Mercedes-Benz, Audi, and BMW in flagship luxury car sales.[164] Automotive analysts have suggested a possible rationale for the sales disparity, in that European buyers place less emphasis on vehicle reliability and have more brand loyalty to established domestic marques.[163] In contrast, the Lexus LS has ranked second in sales to the Mercedes-Benz S-Class (and ahead of rivals from BMW, Audi, and Jaguar) in markets outside Europe, such as South Africa.[165]

Currently all of Lexus's models for the US market are imported from Japan, with the exception of the RX and NX, which are also produced in Cambridge, Ontario for North America, and the ES, which is also produced in Georgetown, Kentucky. The RX midsized crossover is Lexus's best selling model in the United States, while the ES mid-sized car is the most popular sedan in the line-up.

Calendar Year Europe[166] US (Market share %)[167]
2017 44,944  305,229 ( 1.77)
2016 44,287  331,228 ( 1.89)
2015 39,255  344,601 ( 1.97)
2014 31,479  311,389 ( 1.88)
2013 23,708  273,847 ( 1.76)
2012 26,820  244,162 ( 1.68)
2011 27,442  198,552 ( 1.55)
2010 19,185  229,329 ( 1.98)
2009 20,629  215,975 ( 2.07)
2008 29,682  260,087 ( 1.96)
2007 40,496  329,177 ( 2.07)
2006 40,337  322,434 ( 1.95)
2005 23,340  302,895 ( 2.04)
2004 21,122  287,927 ( 1.70)
2003 18,318  259,755 ( 1.56)
2002 19,435  234,109 ( 1.40)
2001 21,357  223,983 ( 1.30)
2000 17,214  206,037 ( 1.20)
1999 15,800  185,890 ( 1.10)
1998 6,938  156,260 ( 1.00)
1997 3,408  97,563 ( 0.60)
1996  81,529 ( 0.50)
1995  83,616 ( 0.50)
1994  91,554 ( 0.58)
1993  99,280 ( 0.64)
1992  92,890 ( 0.69)
1991  71,206 ( 0.58)
1990  63,534 ( 0.46)
1989  16,302 ( 0.11)
1988 0 (0.00)

Financial performance

Financial data of Lexus operations are not disclosed publicly.[168] However, automotive analysts estimate that the Lexus division contributes a disproportionate share of Toyota's profits, relative to its limited production and sales volume.[168] Interviews with retired division officials indicate that depending on sales volume, vehicle product development cycles, and exchange rates, Lexus sales have accounted for as much as half of Toyota's annual U.S. profit in certain years.[168] Division executives have employed pricing strategies aimed at sustaining profit margins rather than sales volume, with historically fewer price incentives than rival brands.[168] In 2006, 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.[169] In 2009, Interbrand ranked Lexus as Japan's seventh largest brand, between Panasonic and Nissan, based on revenue, earnings, and market value.[7]

Automobiles

Vehicle lineup

The global Lexus lineup features sedans of different size classes, including the compact IS model, mid-size ES and GS models, and the full-size LS. The 2-door coupe range consists of the RC and the LC. Former convertibles include the SC and IS C models. Sport-utility vehicles range in size from the subcompact UX, compact NX and mid-size RX crossovers, to the full-size GX and LX. Hybrid models include the CT hatchback, the discontinued HS, and variants of the IS, ES, GS, LS, RC, LC, UX, NX, RX and LM.[170] The F marque line formerly produced a variant of the IS, GS and the LFA and currently produces a variant of the RC coupe.[170]

F marque

 
Lexus F marque emblem

Lexus produces its highest-performance models under its F marque division.[101] The name refers to Flagship and Fuji Speedway in Japan, whose first corner, 27R, inspired the shape of the "F" emblem.[171] F marque models are developed by the Lexus Vehicle Performance Development Division.[172] The first F marque model, the IS F, went on sale in 2007, followed by the LFA in 2009.[115] A related F-Sport performance trim level and factory-sanctioned accessory line is available for standard Lexus models such as the IS 250 and IS 350.[102] The F-Sport trim level commonly includes cosmetic upgrades to the exterior and interior, and in some vehicles, mechanical upgrades such as an adaptive variable suspension.[173][174] F-Sport succeeded an earlier in-house tuning effort, the TRD-based L-Tuned, which had offered performance packages on the IS and GS sedans in the early 2000s (decade).[175][176]

Additions to the performance F Sport marque include the Lexus RC F Sport and Lexus GS F Sport and Lexus LS F Sport.[177]

Model nomenclature

Lexus production models are named alphanumerically using two-letter designations followed by three digits. The first letter indicates relative status in the Lexus model range (ranking),[178] and the second letter refers to car body style or type[178] (e.g. LS for 'luxury sedan'). The three digits commonly indicate engine displacement in liters multiplied by a factor of one hundred (e.g. 350 for a 3.5 L engine),[178] except in the case of turbocharged and hybrid vehicles, for which the digits correspond to the displacement of a naturally aspirated engine with equivalent output (on hybrids, the three digits refer to the combined gasoline-electric output).[68][179][180] A space is used between the letters and numbers. The same letter may be used differently depending on the model; 'S' can refer to 'sedan'[178] or 'sport'[81] (e.g. in LS and SC), while 'X' refers to 'luxury utility vehicle' or SUV.[178][181] For certain models, a lower case letter placed after the alphanumeric designation indicates powerplant type ('h' for hybrid, 'd' for diesel, 't' for turbocharged),[116] while capital letter(s) placed at the end indicates a class subtype (e.g. 'L' for long-wheelbase,[69] 'C' for coupe, 'AWD' for all-wheel drive). On F marque models, the two-letter designation and the letter 'F' are used with no numbers or hyphens (e.g. IS F).[116]

Design and technology

 
Lexus Remote Touch controller

Lexus design has traditionally placed an emphasis on targeting specific vehicle development standards.[182] Since the marque's inception, design targets have ranged from aerodynamics and ride quality to interior ergonomics.[37][183] The backronym "IDEAL" ("Impressive, Dynamic, Elegant, Advanced, and Lasting") is used in the development process.[184] Each vehicle is designed according to approximately 500 specific product standards, known as "Lexus Musts," on criteria such as leather seat stitching.[185][186] Design elements from the marque's concept vehicle line, the LF series (including the 2003 LF-S and 2004 LF-C), have been incorporated in production models.[187][188]

Vehicle cabins have incorporated electroluminescent Optitron gauges,[189] SmartAccess, a smart key entry and startup system,[190] and multimedia features. Beginning with the 2010 RX and HS models, the Remote Touch system, featuring a computer mouse-like controller with haptic feedback, was introduced;[114][191] other models have featured touchscreen controls (through the 2009 model year) as a navigation screen interface.[190] 2014 saw the introduction of the next version of Lexus’ remote-touch innovations—the Remote Touch Interface Touchpad in the new RC Coupe.[192]

In 1989, Lexus became among the first premium car marques to equip models with premium audio systems, in partnership with stereo firm Nakamichi.[193][194] Since 2001, optional surround sound systems are offered via high-end audio purveyor Mark Levinson.[194] For reduced cabin noise, the first LS 400 introduced sandwich steel plating,[189] and later models added acoustic glass.[195] In 2006, the LS 460 debuted the first ceiling air diffusers and infrared body temperature sensors in a car.[196][197] Telematics services include G-Book with G-Link in Asia and Lexus Enform in North America.[198]

 
Eight-speed automatic transmission in the IS F and LS 460 Sport

In 2006, Lexus incorporated the first production eight-speed automatic transmission in an automobile with the LS 460,[196] and the gearbox was later adapted for the GS 460 and IS F models. Continuously variable transmissions, regenerative brakes, and electric motors have been used on all Lexus hybrid models.[68] In 2007, Lexus executives signaled intentions to equip further models with hybrid powertrains,[116] catering to demands for a decrease in both carbon pollution and oil reliance.[199] Hybrid models have been differentiated by separate badging and lighting technology; in 2008, the LS 600h L became the first production vehicle to use LED headlamps.[200]

Safety features on Lexus models range from stability and handling programs (Vehicle Stability Control and Vehicle Dynamics Integrated Management)[201] to backup cameras, swivel headlights, and sonar warning systems. The Lexus Pre-Collision System (PCS) integrates multiple safety systems.[201] In 2007, Lexus introduced the first car safety systems with infrared and pedestrian detection capabilities, lane keep assist, a Driver Monitoring System with facial recognition monitoring of driver attentiveness, and rear pre-collision whiplash protection, as part of the LS 460 PCS.[196] As a safety precaution, Lexus GPS navigation systems in many regions feature a motion lockout when the vehicle reaches a set speed; to prevent distraction, navigation inputs are limited, while voice input and certain buttons are still accessible. This safety feature has attracted criticism because passengers cannot use certain functions when the vehicle is in motion.[202] Pre-2007 models came with a hidden manufacturer override option,[203] and updated European models allow operation in motion.[204]

 
2006 LS 600h and LS 600h L in hybrid form

Production models in development have included convertibles, crossovers, and dedicated hybrids.[205][206] Under the F marque, Lexus plans to produce high-performance vehicles with its first expressions being the IS F and the LFA. Lexus officials have also discussed standard production model usage of varying platforms.[207] The LS uses a dedicated platform,[34] while the entry-level Lexus ES had been criticized for being too similar to the Toyota Camry, with which it shared platforms until its sixth generation,[136] in both styling and powertrain design.[208] The Nürburgring test track in Germany has also seen Lexus prototype testing.[209]

L-finesse

Lexus introduced a new design language known as "L-finesse" in the mid-2000s with its LF series concepts and the 2006 Lexus GS.[210][211] L-finesse is represented by three Japanese kanji characters which translate as "Intriguing Elegance, Incisive Simplicity, and Seamless Anticipation".[211] Design characteristics, including a fastback profile, lower-set grille,[212] and the use of both convex and concave surfaces,[212] are derived from Japanese cultural motifs (e.g. the phrase kirikaeshi in arrowhead shapes).[213] While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars,[212] automotive design analyses described L-finesse as adding a distinctive nature and embrace of Japanese design identity.[210][211] Opinions varied for L-finesse's debut on the GS; Sports Car International's analysis praised the vehicle's in-person appearance;[214] Automobile Magazine criticized the daring of its forward styling,[215] and compared subsequent rival models for design similarities.[216] In 2012, the arrival of the redesigned fourth generation Lexus GS featured the introduction of a spindle-shaped grille design, intended to be used on all forthcoming Lexus models.[146] L-finesse exhibitions were presented at Milan's Salone del Mobile from 2005 through 2009.[217]

Production

Assembly plants

 
Lexus models produced by the Tahara plant in Aichi, Japan

The first Lexus vehicles were manufactured in Toyota's Tahara plant, a computerized manufacturing plant in Japan.[170][218] Through the 2000s, most Lexus sedan and SUV production has occurred in Japan at the Tahara plant in Aichi and the Miyata plant in Fukuoka.[73][170] In addition to the Tahara factory, over time Lexus vehicles have been produced at the Miyata plant (Toyota Motor Kyushu) in Miyawaka, Fukuoka; the Higashi-Fuji plant (Kanto Auto Works) in Susono, Shizuoka; and the Yoshiwara plant (Araco, later Toyota Auto Body) in Toyota City, Aichi.[73][170] Front-wheel drive cars, such as the ES and HS, have been produced in the Fukuoka Prefecture.[170] Toyota Motor Kyushu's Kokura plant in Kitakyushu, Fukuoka, which opened in 2008, is a dedicated hybrid production site for hybrid systems used in Lexus models such as the gasoline-electric RX.[219] The North American–market RX 350 (since the 2004 model year) is produced at the Cambridge plant (Toyota Canada, Inc.) in the city of Cambridge, in Ontario, Canada, which is the first Lexus production site located outside Japan. In late 2015, Lexus started to assemble North American-spec ES 350 sedans at the Georgetown plant (TMMK, Inc.).[220] In January 2020, Toyota Kirloskar Motor of India started assembling the ES sedan in its Bidadi plant.

Relative to Toyota models, Lexus vehicles are built according to different quality control standards,[221][222] including more stringent body panel fit tolerances and paint quality requirements.[221][223] Their manufacture involves different assembly lines, molds, welding processes, and manufacturing equipment.[224][225] Lexus plant workers also undergo a more selective screening process.[226][69] Production vehicles are given visual inspections for flaws, individually test-driven at high speeds, and subjected to vibration tests.[221]

Assembly sites by model[73][170]
Plant Owner Location Model(s)
Tahara Toyota Motor Corp. Tahara, Aichi Prefecture LS, GS, IS, GX, RC, NX
Tsutsumi Toyota Motor Corp. Toyota City, Aichi Prefecture ES
Kokura Toyota Motor Kyushu, Inc. Kitakyushu, Fukuoka Prefecture CT, HS, RX
Miyata Toyota Motor Kyushu, Inc. Miyawaka, Fukuoka Prefecture ES, IS, RX, NX, UX
Motomachi Toyota Motor Corp. Toyota City, Aichi Prefecture LFA, LC
Higashi Fuji Kanto Auto Works, Ltd. Susono, Shizuoka Prefecture SC
Yoshiwara Toyota Auto Body Corp. Toyota City, Aichi Prefecture LX
Cambridge Toyota Motor Manufacturing Canada Cambridge, Ontario RX, RXh, NX
Georgetown Toyota Motor Manufacturing Kentucky Georgetown, Kentucky ES
Bidadi Toyota Kirloskar Motor Bidadi, Karnataka ES

Quality rankings

In the 2000s (decade), Consumer Reports named Lexus among the top five most reliable brands in its Annual Car Reliability Surveys of over one million vehicles across the U.S.[227][228]

Service

 
Lexus dealership showroom in Sapporo, Hokkaido, Japan

Lexus has become known for efforts to provide an upscale image, particularly with service provided after the sale. The waiting areas in service departments are replete with amenities, ranging from refreshment bars to indoor putting greens.[229][230] Dealerships typically offer complimentary loaner cars or "courtesy cars" and free car washes,[230] and some have added on-site cafes and designer boutiques.[231][232] Service bays are lined with large picture windows for owners to watch the servicing of their vehicle.[233] In 2005, Lexus also began reserving parking lots at major sporting arenas, entertainment events, and shopping malls, with the only requirement for free entry being the ownership of a Lexus vehicle.[234] An online owner publication, Lexus Magazine,[235] features automotive and lifestyle articles and is published online monthly[236] and on a mobile site.[237]

Since 2002, Lexus has scored consecutive top ratings in the Auto Express[238][239][240] and 76,000-respondent Top Gear customer satisfaction surveys in the UK.[241] Lexus has also repeatedly topped the 79,000-respondent J.D. Power Customer Service Index[242] and Luxury Institute, New York surveys in the U.S.[243] As a result of service satisfaction levels, the marque has one of the highest customer loyalty rates in the industry.[244] To improve customer service, employees are instructed to follow the "Lexus Covenant," the marque's founding promise (which states that "Lexus will treat each customer as we would a guest in our home"),[245] and some dealerships have incorporated training at upscale establishments such as Nordstrom department stores and Ritz-Carlton hotels.[246]

Motorsport

 
Lexus campaigned at the 24 Hours Nürburgring.

Lexus first entered the motorsport arena in 1999 when its racing unit, Team Lexus,[247] fielded two GS 400 race vehicles in the Motorola Cup North American Street Stock Championship touring car series. In its 1999 inaugural season, Team Lexus achieved its first victory with its sixth race at Road Atlanta.[248] Led by Sports Car Club of America and International Motor Sports Association driver Chuck Goldsborough, based in Baltimore, Maryland,[249] Team Lexus capitalized on the debut of the first generation Lexus IS by entering three IS 300s in the third race of the 2001 Grand-Am Cup season at Phoenix, Arizona.[250] Team Lexus won its first IS 300 victory that year at the Virginia International Raceway.[250] In 2002, Team Lexus' competitive efforts in the Grand-Am Cup ST1 (Street Tuner) class achieved victories in the Drivers' and Team Championships,[248][249] as well as a sweep of the top three finishes at Circuit Mont-Tremblant in Quebec, Canada.[251]

After the release of the Lexus brand in the Japanese domestic market in 2005, Lexus sanctioned the entry of four SC 430 coupes in the Super GT series of the All Japan Grand Touring Car Championship in the GT500 class. In the first race of the 2006 series, an SC 430 took the chequered flag,[252] and drivers André Lotterer and Juichi Wakisaka raced the SC 430 to capture the GT500 championship for that year.[253] In 2007, another SC 430 won the GT500 opening round race.[254] In 2006, Lexus raced a hybrid vehicle for the first time, entering a GS 450h performance hybrid sedan in partnership with Sigma Advanced Racing Development at the 24 Hours of Tokachi race in Hokkaido, Japan.[255] Lexus Canada also entered the GS 450h in 2007's Targa Newfoundland event.[256] In 2009, Lexus Super GT Team SC 430 and IS 350 racers won the GT500 and GT300 championships, respectively.[257]

 
In 2006, 2007, and 2008, Lexus won the Rolex Sports Car Series Manufacturers' Championship.

Lexus' participation in endurance racing further includes the Rolex 24 Hours of Daytona, sanctioned by the Grand American Road Racing Association. After entering the Rolex Sports Car Series in 2004, Lexus has won over 15 Rolex Series event races.[258] In 2005, Lexus was runner-up, and in 2006, it won the championship.[259] Although Toyota has won this 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.[260] In 2008, Lexus won its third consecutive win at Daytona.[261] For the 2010 season, Lexus departed from the Rolex Sports Car Series, and Ganassi Racing switched to BMW/Dinan engines.[262]

The LF-A prototype also competed on the Nürburgring from 2008 to 2011 in VLN endurance races[263] and in the 24 Hours Nürburgring, also with the IS F.[264] On 14 May 2011, a CT 200h tuned up by Gazoo Racing competed in the Adenauer ADAC Rundstrecken-Trophy, a six-hour endurance race.[265]

3GT Racing, a partnership of Lexus and Paul Gentilozzi, entered two Lexus RC F GT3 at the N.American 2017 WeatherTech SportsCar Championship in the GT Daytona class. Their first win came in the 2018 WeatherTech SportsCar Championship with Dominik Baumann and Kyle Marcelli at Mid-Ohio before winning again with the same pairing at Virginia International Raceway. Lexus finished in 8th in their first season in 2017 in the GT Daytona Manufacturer's Championship. They then improved to 5th in 2018 with the #14 achieving 5th and the #15 getting 10th in the Team's Championship.[citation needed]

For the 2019 WeatherTech SportsCar Championship, the running of the Lexus GT3 cars has been transferred to AIM Vasser Sullivan, which is a debuting partnership, where the driver pairing of Jack Hawksworth and Richard Heistand have currently achieved 2 wins at Mid-Ohio before winning the next race at Belle Isle. As of the result of Lime Rock Park, Lexus are second in the 2019 Manufacturer's Championship and the #12 is third with the #14 in 5th despite that being the winning car.[citation needed]

Marketing

 
Lexus 2054, a concept model produced for the film Minority Report

From its inception, Lexus has been advertised to luxury consumers using specific marketing strategies, with a consistent motif used for the marque's advertisements. Beginning in 1989, television ads were narrated by actor James Sloyan (the voice of "Mr. Lexus" until 2009),[36][266] and accompanied by vehicles that performed unusual stunts onscreen.[267] The first decade of Lexus commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless," "pursuit," and "perfection,"[268] while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera.[267] Examples included the champagne glass "Balance" (1989) and rolling "Ball Bearing" (1992).[267] In the 2000s (decade), commercials included descriptions of features,[269] or a narration of the events onscreen, and were often targeted at the marque's German competitors.[270] An annual "December to Remember" campaign featured scenes of family members surprising loved ones with the gift of a new Lexus.[271] The marque returned to the champagne glass theme in a 2006 LS 460 spot showing the sedan maneuvering between two stacks of glasses using its self-parking system, and in a 2010 LFA spot showing its engine sound shattering a glass via resonance frequency.[272]

 
Lexus LFA Crystallised Wind, a full-size glass art model

Industry observers have attributed Lexus' early marketing successes to higher levels of perceived quality and lower prices than competitors, which have enabled the marque to attract customers upgrading from mass-market cars.[12][40] A reputation for dependability, bolstered by reliability surveys, also became a primary factor in attracting new customers from rival premium makes.[273][274] Lexus has since grown to command higher price premiums than rival Japanese makes,[275] with new models further increasing in price and reaching the more than $100,000 ultra-luxury category long dominated by rival European marques.[276][277][278]

Automotive analysts have also noted Lexus' relative newcomer status as a marketing challenge for the brand,[279] although some have debated the requirement of a long history.[275][280] European rivals have marketed their decades of heritage and pedigree,[281] whereas Lexus' reputation rests primarily upon its perceived quality and shared history with parent company Toyota.[275] Several analysts have stated that Lexus will have to develop its own heritage over time by highlighting technological innovations and producing substantial products.[100][279]

Lexus' marketing efforts have extended to sporting and charity event sponsorships, including the U.S. Open tennis Grand Slam event from 2005 to 2009, and the United States Golf Association's U.S. Open, U.S. Women's Open, U.S. Senior Open, and U.S. Amateur tournaments since 2007.[282][283] Lexus has organized an annual Champions for Charity golf series in the U.S. since 1989.[284] Endorsement contracts have also been signed with professional athletes Hideki Matsuyama, Andy Roddick, Annika Sörenstam, and Peter Jacobsen.[285]

Since 2008, Lexus has run the video website L Studio. Shows on L Studio include Web Therapy.[286]

Lexus unveiled its new "Experience Amazing" tagline in the U.S. in a 60-second advertisement at the February 2017 Super Bowl LI.[287] The new tagline replaced Lexus's previous slogans, "Amazing in Motion" and "The Pursuit of Perfection".[288]

On 30 March 2018, Lexus premiered a fake partnership with 23 and Me during a spot on Saturday Night Live, for a pretend program that allows buyers to customize vehicles based on their DNA, as an April Fool's Day joke.[289]

Lexus slogans

  • The Relentless Pursuit of Perfection (1989–2011)
  • The Pursuit of Perfection (2010–2016)
  • Amazing in Motion (2013–2016)
  • Experience Amazing (2017–present)

See also

References

Notes

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Bibliography

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External links

lexus, レクサス, rekusasu, luxury, vehicle, division, japanese, automaker, toyota, brand, marketed, more, than, countries, territories, worldwide, japan, largest, selling, make, premium, cars, ranked, among, largest, japanese, global, brands, market, value, headqu. Lexus レクサス Rekusasu is the luxury vehicle division of the Japanese automaker Toyota The Lexus brand is marketed in more than 90 countries and territories worldwide 3 6 and is Japan s largest selling make of premium cars It has ranked among the 10 largest Japanese global brands in market value 7 Lexus is headquartered in Nagoya Japan Operational centers are located in Brussels Belgium and Plano Texas United States LexusTypeDivisionIndustryAutomotiveFounded1989 34 years ago 1989 1 FounderEiji ToyodaHeadquartersNagoya JapanArea servedWorldwideKey peopleKoji Sato President 2 David Nordstrom VP Asia Pacific 3 Spiros Fotinos VP EU 4 Andrew Gilleland VP U S 5 ProductsLuxury vehiclesPerformance vehiclesBrandsF marqueServicesAutomotive financingParentToyotaWebsiteOfficial sites select by country Created at around the same time as Japanese rivals Honda and Nissan created their Acura and Infiniti luxury divisions respectively Lexus originated from a corporate project to develop a new premium sedan code named F1 which began in 1983 and culminated in the launch of the Lexus LS in 1989 8 Subsequently the division added sedan coupe convertible and SUV models Lexus did not exist as a brand in its home market until 2005 and all vehicles marketed internationally as Lexus from 1989 to 2005 were released in Japan under the Toyota marque and an equivalent model name In 2005 a hybrid version of the RX crossover debuted and additional hybrid models later joined the division s lineup Lexus launched its own F marque performance division in 2007 with the debut of the IS F sport sedan followed by the LFA supercar in 2009 Lexus vehicles are largely produced in Japan with manufacturing centered in the Chubu and Kyushu regions and in particular at Toyota s Tahara Aichi Chubu and Miyata Fukuoka Kyushu plants Assembly of the first Lexus produced outside the country the Canadian built RX 330 began in 2003 Following a corporate reorganization from 2001 to 2005 Lexus began operating its own design engineering and manufacturing centers Since the 2000s Lexus has increased sales outside its largest market the United States The division inaugurated dealerships in the Japanese domestic market in 2005 becoming the first Japanese premium car marque to launch in its country of origin 9 The brand has since debuted in Southeast Asia Latin America Europe and other regions and has introduced hybrid vehicles in many markets Contents 1 History 1 1 1980s The F1 project 1 1 1 Brand development 1 1 2 Launch 1 2 1990s Growth and expansion 1 3 2000s Global reorganization 1 3 1 Hybrids and F models 1 4 2010s 2020s Recent developments 2 Corporate affairs 2 1 Operations 2 2 Sales 2 3 Financial performance 3 Automobiles 3 1 Vehicle lineup 3 2 F marque 3 3 Model nomenclature 4 Design and technology 4 1 L finesse 5 Production 5 1 Assembly plants 5 2 Quality rankings 6 Service 7 Motorsport 8 Marketing 8 1 Lexus slogans 9 See also 10 References 10 1 Notes 10 2 Bibliography 11 External linksHistory Edit1980s The F1 project Edit The Lexus brand was created around the same time as Japanese rivals Nissan and Honda developed their Infiniti and Acura premium brands The Japanese government imposed voluntary export restraints for the U S market so it was more profitable for Japanese automakers to export more expensive cars to the U S In 1983 Toyota chairman Eiji Toyoda issued a challenge to build the world s best car 10 The project code named F1 Flagship One 11 developed the Lexus LS 400 to expand Toyota s product line in the premium segment 12 The F1 project followed the Toyota Supra sports car and the premium Toyota Mark II models 13 Both the Supra and Mark II were rear wheel drive cars with a powerful 7M GE or 7M GTE inline six engine The largest sedan Toyota built at the time was the limited production 1960s vintage Toyota Century a domestic hand built limousine and V8 powered model 14 followed by the inline six engined Toyota Crown premium sedan 14 15 The Century was conservatively styled for the Japanese market and along with the Crown not slated for export after a restyle in 1982 15 The F1 designers targeted their new sedan at international markets and began development on a new V8 engine 14 15 Japanese manufacturers exported more expensive models in the 1980s due to voluntary export restraints negotiated by the Japanese government and U S trade representatives that restricted mainstream car sales 16 In 1986 Honda launched its Acura marque in the U S influencing Toyota s plans for a luxury division 17 The initial Acura model was an export version of the Honda Legend itself launched in Japan in 1985 as a rival to the Toyota Crown Nissan Cedric Gloria and Mazda Luce 18 In 1987 Nissan unveiled its plans for a premium brand Infiniti 19 and revised its Nissan President sedan in standard wheelbase form for export as the Infiniti Q45 which it launched in 1990 20 Mazda began selling the Luce as the Mazda 929 in North America in 1988 and later began plans to develop an upscale marque to be called Amati but its plans did not come to fruition 19 Toyota researchers visited the U S in May 1985 to conduct focus groups and market research on luxury consumers 21 During that time several F1 designers rented a home in Laguna Beach California to observe the lifestyles and tastes of American upper class consumers 21 Meanwhile F1 engineering teams conducted prototype testing on locations ranging from the German autobahn to U S roads 22 Toyota s market research concluded that a separate brand and sales channel were needed to present its new sedan and plans were made to develop a new network of dealerships in the U S market 23 Brand development Edit In 1986 Toyota s longtime advertising agency Saatchi amp Saatchi formed a specialized unit Team One to handle marketing for the new brand 17 Image consulting firm Lippincott amp Margulies was hired to develop a list of 219 prospective names Vectre Verone Chaparel Calibre and Alexis were chosen as top candidates 24 While Alexis quickly became the front runner concerns were raised that the name applied to people more than cars being associated with the Alexis Carrington character on the popular 1980s prime time drama Dynasty 24 25 As a result the first letter was removed and the i replaced with a u to morph the name to Lexus 25 1989 LS 400 sedan was the first Lexus model Theories of the etymology of the Lexus name have suggested it is the combination of the words luxury and elegance 26 and that it is an acronym for luxury exports to the U S 26 According to Team One interviews the brand name has no specific meaning and simply denotes a luxurious and technological image 24 Prior to the release of the first vehicles database service LexisNexis obtained a temporary injunction forbidding the name Lexus from being used because it might cause product confusion 27 The injunction threatened to delay the division s launch and marketing efforts 27 The U S appeals court lifted the injunction deciding that there was little likelihood of confusion between the two products 27 The original Lexus slogan developed after Team One representatives visited Lexus designers in Japan and noted an obsessive attention to detail became The Relentless Pursuit of Perfection 28 Three firms were involved in the final phase of logo development Saatchi amp Saatchi Molly Designs and Hunter Korobkin Inc 29 The finished logo was a combination of two firms final designs the Lexus logo typeface came from Saatchi amp Saatchi and the L was Hunter Korobkin Inc s design According to Toyota the automaker made some refinements so the logo would be easier to manufacture rendering it using a mathematical formula 30 24 The first teaser ads featuring the Lexus name and logo appeared at the Chicago Los Angeles and New York auto shows in 1988 31 Launch Edit The F1 project was completed in 1989 involving 60 designers 24 engineering teams 1 400 engineers 2 300 technicians 220 support workers approximately 450 prototypes and more than 1 billion in costs 32 The resulting car the Lexus LS 400 had a design that shared no major elements with previous Toyota vehicles with a new 4 0 L V8 gasoline engine and rear wheel drive 33 34 The car debuted in January 1989 at the North American International Auto Show in Detroit 19 and official sales of the vehicle began the following September at a network of 81 new Lexus dealerships in the U S 35 The LS 400 was sold along with the smaller ES 250 a rebadged version of the Japanese market Toyota Camry Prominent Toyota Vista 22 The launch of Lexus was accompanied by a multimillion dollar advertising campaign 36 1991 SC 400 was the third Lexus model and first coupe The LS 400 was praised for its quietness well appointed and ergonomic interior engine performance build quality aerodynamics fuel economy and value 22 37 However it was criticized by some automobile columnists for derivative styling and a suspension regarded as too compromising of handling for ride comfort 22 38 In some markets it was priced against mid size six cylinder Mercedes Benz and BMW models 39 It was rated by Car and Driver magazine as better than the higher priced Mercedes Benz 420 SEL and BMW 735i in terms of ride handling and performance 40 The LS 400 also won motoring awards from automotive publications including Automobile Magazine and Wheels Magazine 41 42 Lexus quickly established customer loyalty and its debut was generally regarded as a shock to existing luxury marques BMW s and Mercedes Benz s U S sales figures dropped 29 percent and 19 percent respectively with BMW executives accusing Lexus of dumping in that market while 35 percent of Lexus buyers traded in a Lincoln or Cadillac 40 In December 1989 Lexus initiated a voluntary recall of all 8 000 LS 400s based upon two customer complaints over defective wiring and an overheated brake light 40 A 20 day operation to replace the parts on affected vehicles included technicians to pick up repair and return cars to customers free of charge and also flying personnel and renting garage space for owners in remote locations 40 This response was covered in media publications and helped establish the marque s early reputation for customer service 43 44 By the end of 1989 a total of 16 392 LS 400 and ES 250 sedans were sold in the four months following the U S launch 45 Although sales had begun at a slower pace than expected the final tally matched the division s target of 16 000 units for that year 46 Following initial models plans called for the addition of a sports coupe along with a redesigned ES sedan 47 1990s Growth and expansion Edit 1998 RX 300 first Lexus crossover SUV In 1990 during its first full year of sales Lexus sold 63 594 LS 400 and ES 250 sedans in the U S 48 the majority being the LS model 48 That year Lexus also began limited exports to the United Kingdom Switzerland Canada and Australia 22 49 In 1991 Lexus launched its first sports coupe the SC 400 which shared the LS 400s V8 engine and rear wheel drive design 47 This was followed by the second generation ES 300 sedan which succeeded the ES 250 and became Lexus top seller 47 At the conclusion of 1991 Lexus had become the top selling premium car import in the U S 50 51 with sales reaching 71 206 vehicles 48 That year Lexus ranked highest in J D Power and Associates studies on initial vehicle quality customer satisfaction and sales satisfaction for the first time 52 The marque also began increasing U S model prices past those of comparable American premium makes but still below high end European models 51 By 1992 the LS 400 s base price had risen 18 percent 53 In 1993 Lexus launched the mid size GS 300 sports sedan based on the Toyota Aristo using the Toyota S platform from the Toyota Crown which had sold for two years prior in Japan 47 The GS 300 was priced below the LS 400 in the marque s lineup 54 That same year Lexus became one of the first marques to debut a certified pre owned program with the aim of improving trade in model values 55 The marque introduced the second generation LS 400 in 1994 56 In May 1995 sales were threatened by the U S government s proposal of 100 percent tariffs on upscale Japanese cars in response to the widening U S Japan trade deficit 57 SUVs were exempt from the proposed sanctions 58 Normal sales operations resumed by late 1995 when the Japanese auto manufacturers collectively agreed to greater American investments and the tariffs were not enacted 57 ES 300 was the best selling Lexus sedan in the 1990s In 1996 Lexus debuted its first sport utility vehicle the LX 450 59 followed by the third generation ES 300 sedan and the second generation GS 300 and GS 400 sedans in 1997 The marque s plans for developing an SUV model had accelerated during the U S Japan tariff discussions of 1995 58 Lexus added the first luxury branded crossover SUV the RX 300 in 1998 The RX crossover targeted suburban buyers who desired an upmarket SUV but did not need the LX s off road capability 60 It was particularly successful eventually becoming the marque s top selling model ahead of the ES sedan 60 The same year Lexus made its debut in South America s most populous country when it launched sales in Brazil 61 62 In 1999 the IS was introduced an entry level sport sedan Lexus also recorded its 1 millionth vehicle sold in the U S market 50 being ranked as the top selling premium car maker in the U S overall 60 2000s Global reorganization Edit 2004 RX 400h first hybrid version of Lexus best selling vehicle In July 2000 Lexus introduced the IS 300 in North America following global launch in 1999 as the IS 200 and the third generation LS 430 In 2001 the first convertible was introduced as well as the SC 430 and a redesigned ES 300 63 The GX 470 mid size SUV debuted in 2002 followed by the second generation RX 330 in 2003 64 The following year Lexus recorded its 2 millionth U S vehicle sale 65 66 and the first luxury branded production hybrid SUV the RX 400h 67 This vehicle used Toyota s Hybrid Synergy Drive system that combined gasoline and electric motors 68 In 2005 Lexus completed an organizational separation from parent company Toyota 69 with dedicated design engineering training and manufacturing centers working exclusively for the division 70 71 This effort coincided with Lexus launch in its home market of Japan and an expanded global launch of the brand in markets such as China 71 72 Executives aimed to increase Lexus sales outside of its largest market in the U S 71 73 To accompany this expansion next generation Lexus vehicles were redesigned as global models for international release 74 In the European market where Lexus had long faced struggling sales owing to low brand recognition few dedicated dealerships and 1990s import quotas 75 76 the marque announced plans to introduce hybrid and diesel powertrains 77 increase the number of Lexus dealerships and expand operations in emerging markets such as Russia 78 79 2006 Lexus IS second generation with F marque variant in 2007 Lexus arrival in the Japanese market in July 2005 marked the first introduction of a Japanese premium car marque in the domestic market 9 New generation LS IS ES GS and RX models subsequently became available in Japan along with the SC 430 ending domestic sales of Toyota branded models under the Celsior Altezza Windom Aristo Harrier and Soarer nameplates respectively The Altezza and Aristo were previously exclusive to Japanese Toyota retail sales channels called Toyota Vista Store the Windom was exclusive to Toyota Corolla Store the Celsior and Harrier were exclusive to Toyopet Store and the Soarer was previously available at both Toyota Store and Toyopet Store locations 80 81 Lexus models sold in Japan featured higher specifications and a price premium compared with their discontinued Toyota counterparts 80 Sales for the first half year were slower than expected 82 affected by the contraction of the domestic auto market and price increases 83 but improved in subsequent months with an expanded lineup 83 84 Through the mid 2000s Lexus experienced sales successes in South Korea and Taiwan becoming the top selling import make in both markets in 2005 85 86 the marque also sold well in the Middle East where it ranked first or second among rivals in multiple countries 87 and in Australia where Lexus reached third in luxury car sales in 2006 88 89 Division executives in 2006 announced an expansion goal from 68 countries to 76 worldwide by 2010 90 By the end of the decade this expansion resulted in official launches in Malaysia and South Africa in 2006 91 92 Indonesia in 2007 93 Chile in 2008 94 95 and the Philippines in 2009 96 Hybrids and F models Edit In 2006 Lexus began sales of the GS 450h a V6 hybrid performance sedan 97 and launched the fourth generation LS line comprising both standard and long wheelbase V8 LS 460 and LS 460 L and hybrid LS 600h and LS 600h L versions 98 The fifth generation ES 350 also debuted in the same year The LS 600h L subsequently went on sale as the most expensive sedan ever produced in Japan 99 By the end of 2006 Lexus annual sales had reached 475 000 vehicles worldwide 100 In January 2007 Lexus announced a new F marque performance division which would produce racing inspired versions of its performance models The IS F made its debut at the 2007 North American International Auto Show 101 accompanied by a concept car the LF A 2006 GS 450h first rear wheel drive hybrid In October 2007 Lexus entered the Specialty Equipment Market Association show in the U S for the first time with the IS F and announced its F Sport performance trim level and factory sanctioned accessory line 102 Increased emphasis on sporty models was an effort to target rivals from Mercedes Benz s AMG and BMW s M divisions 101 103 Models such as the SC 400 and GS 400 had received favorable reactions from sport luxury buyers 104 most Lexus models had been characterized as favoring comfort over sporty road feel and handling compared with European rivals 105 By the end of 2007 Lexus annual worldwide sales had surpassed 500 000 vehicles 106 and the marque ranked as the top selling premium import in China for the first time 107 The largest sales markets in order of size for 2007 were the U S Japan the UK China Canada and Russia 100 108 In 2008 amidst the late 2000s recession and a weakened world car market global sales fell 16 percent to 435 000 109 110 111 with declines in markets such as the U S and Europe where deliveries fell by 21 percent and 27 5 percent respectively 112 113 In 2009 the marque launched the HS 250h 114 a dedicated hybrid sedan for North America and Japan the RX 450h the second generation hybrid SUV replacing the earlier RX 400h and later that year debuted the US 375 000 production LFA exotic coupe 115 In late 2009 citing higher sales of hybrid models over their petrol counterparts 116 117 Lexus announced plans to become a hybrid only marque in Europe 118 By the end of the decade Lexus ranked as the fourth largest premium car make in the world by volume 119 and was the number one selling premium car marque in the U S for 10 consecutive years 111 119 120 2010s 2020s Recent developments Edit 2012 Lexus LFA In 2010 Lexus underwent a gradual sales recovery in North America and Asia as the marque focused on adding hybrids and new model derivatives 87 Sales in the U S held steady despite the 2009 2010 Toyota vehicle recalls several of which included Lexus models 121 The ES 350 and certain IS models were affected by a recall for potentially jamming floor mats 121 while parent company Toyota bore the brunt of negative publicity amid investigations over its series of product recalls and problem rates per vehicle 121 122 The redesigned GX 460 was also voluntarily recalled in April 2010 for a software update one week after Consumer Reports issued a recommendation not to buy the SUV citing a possible rollover risk following the slow stability control response to a high speed emergency turn 123 Although the publication knew of no reported incidents the GX 460 received updated stability control software 123 In late 2010 and early 2011 Lexus began sales of the CT 200h a compact four door hybrid hatchback designed for Europe in multiple markets 124 125 Sales of lower displacement regional models were also expanded beginning with the ES 240 in China followed by the RX 270 Japan Russia and Taiwan were among markets which received model variants intended for reduced emissions or import taxes 126 127 In March 2011 the Tōhoku earthquake and tsunami caused severe disruption to Lexus Japan based production lines hindering the marque s near term sales prospects 128 Lexus U S executives stated that due to vehicle shortages amidst close competition from BMW Mercedes Benz and Audi the marque would not remain the country s top selling premium car brand 128 2010 CT 200h first Lexus hatchback Cumulative sales results for 2011 indicated a 14 percent sales drop in the U S market 129 along with sales increases of 40 percent and 27 percent in Europe and Japan respectively 130 131 for a global sales total of 410 000 units 132 Lexus streak of 11 consecutive years as the best selling luxury marque in the U S ended that year with the title going to BMW followed by Mercedes Benz 133 While 45 percent of Lexus sales in the U S in 2011 relied upon the RX luxury crossover SUV rival Mercedes Benz s best selling offering was the E Class mid luxury sedan which commands considerably higher prices 134 Subsequently Toyota chairman Akio Toyoda vowed to restore passion to the marque and further increase its organizational independence admitting that back then we did not regard Lexus as a brand but as a distribution channel As a result of Toyoda s organizational changes Lexus senior managers report directly to the chairman for the first time in the marque s history 133 134 In January 2012 the marque began sales of the fourth generation GS line including GS 350 and GS 450h variants as well as a lower displacement GS 250 model for select markets 135 In April 2012 the sixth generation ES line including ES 350 and ES 300h variants debuted at the New York International Auto Show 136 In April 2014 Lexus unveiled the five seater NX crossover The vehicle features a very first for a Lexus vehicle a turbocharger Its nomenclature is denoted as the 200t In August 2014 Toyota announced it would be cutting its Lexus spare parts prices in China by up to 35 percent The company admitted the move was in response to a probe foreshadowed earlier in the month by China s National Development and Reform Commission of Lexus spare parts policies as part of an industry wide investigation into what the Chinese regulator considers exorbitantly high prices being charged by automakers for spare parts and after sales servicing 137 2018 Lexus LS 500h In March 2016 Lexus announced that it will be producing a new flagship vehicle the two door LC 500 The vehicle will be produced for late 2017 in a V8 version putting out 467 horsepower The LC 500h a V6 hybrid variant could potentially become available in late 2017 or early 2018 In April 2019 Lexus announced that a rebadged limousine version of the third generation Alphard would be sold as the Lexus LM 138 It was also announced that Lexus would finally enter the market in Mexico in 2021 with some of the vehicles in their lineup 139 In October 2019 Lexus announced that it will be launching the brand s first all battery electric vehicle in 2020 140 Corporate affairs EditTotal sales and production Regional sales 2011 UnitsJapan 131 42 365China 141 56 303Europe 130 43 637United States 129 198 552Type production 2010 UnitsPassenger vehicles 205 070Crossover SUVs 159 560Hybrid vehicles 66 226Line production 2010 UnitsJapan production 142 283 012Canada production 143 81 618Total 364 630Operations Edit Lexus International coordinates the worldwide operations of Toyota s luxury division 144 145 from the brand s global headquarters located in Nagoya Aichi 146 144 Corporate entities further include the brand s Japan Sales and Marketing and global Product and Marketing Planning divisions 145 147 While organizationally separate from its parent company Lexus International reports directly to Toyota chief executive officer Akio Toyoda 132 In the U S brand operations are managed by the U S Lexus division which is headquartered in Plano Texas 148 In Europe Lexus operations are managed by Lexus Europe located in Brussels 149 Companion design facilities are located in Southern California 150 and central Japan 151 with the head design studio devoted entirely to Lexus models in Toyota City Aichi 151 152 Lexus sales operations vary in structure by region In many markets such as the U S the dealership network is a distinct organization from corporate headquarters 128 with separately owned and operated Lexus showrooms 153 By contrast in Japan all 143 dealerships in the country are owned and operated by Lexus 83 Several markets have a designated third party regional distributor for example in the United Arab Emirates sales operations are managed by Al Futtaim Motors LLC 87 and in Costa Rica Lexus vehicles are sold via regional distributor Purdy Motors S A 154 Other officially sanctioned regional distributors have sold Lexus models prior to the launch of or in absence of a dedicated dealership network 92 The Lexus brand launched in the Indian market in 2017 155 with the models RX450h LX450d LX570 ES300h 156 NX LS 157 Dealerships in Mumbai Delhi Gurgaon and Bangalore became operational in March 2017 when the brand began sales in India with a second set of dealerships opening in Chandigarh Kochi and Chennai toward the end of 2017 156 This made Lexus the fifth luxury brand to be launched in India after Mercedes Benz Porsche BMW and Audi Sales Edit Global sales of Lexus vehicles reached an all time high in 2007 with a total of 518 000 Sales decreased in subsequent years due to the effects of the 2008 recession and the Japanese tsunami of 2011 Following this sales recovered and reached a new high of 523 000 in 2013 158 In 2014 the Lexus brand set a new global sales record after selling 582 000 vehicles This made Lexus the fourth best selling luxury brand in the world trailing BMW Audi and Mercedes Benz 159 Fuji Lexus College training facility for dealers in Shizuoka Japan Global sales of Lexus vehicles increased by 12 percent in 2015 to reach another annual sales record with 652 000 units sold worldwide 160 Global cumulative sales of Lexus brand hybrid electric cars reached the 500 000 mark in November 2012 161 The 1 million sales milestone was achieved in March 2016 162 The Lexus RX 400h RX 450h ranks as the top selling Lexus hybrid with 335 000 units delivered worldwide as of March 2016 update followed by the Lexus CT 200h with 267 000 units 162 Lexus has not sold as well in Europe where it suffers from smaller brand recognition image and a less developed dealership network 163 In European markets the Lexus LS has ranked behind Jaguar Mercedes Benz Audi and BMW in flagship luxury car sales 164 Automotive analysts have suggested a possible rationale for the sales disparity in that European buyers place less emphasis on vehicle reliability and have more brand loyalty to established domestic marques 163 In contrast the Lexus LS has ranked second in sales to the Mercedes Benz S Class and ahead of rivals from BMW Audi and Jaguar in markets outside Europe such as South Africa 165 Currently all of Lexus s models for the US market are imported from Japan with the exception of the RX and NX which are also produced in Cambridge Ontario for North America and the ES which is also produced in Georgetown Kentucky The RX midsized crossover is Lexus s best selling model in the United States while the ES mid sized car is the most popular sedan in the line up Calendar Year Europe 166 US Market share 167 2017 44 944 305 229 1 77 2016 44 287 331 228 1 89 2015 39 255 344 601 1 97 2014 31 479 311 389 1 88 2013 23 708 273 847 1 76 2012 26 820 244 162 1 68 2011 27 442 198 552 1 55 2010 19 185 229 329 1 98 2009 20 629 215 975 2 07 2008 29 682 260 087 1 96 2007 40 496 329 177 2 07 2006 40 337 322 434 1 95 2005 23 340 302 895 2 04 2004 21 122 287 927 1 70 2003 18 318 259 755 1 56 2002 19 435 234 109 1 40 2001 21 357 223 983 1 30 2000 17 214 206 037 1 20 1999 15 800 185 890 1 10 1998 6 938 156 260 1 00 1997 3 408 97 563 0 60 1996 81 529 0 50 1995 83 616 0 50 1994 91 554 0 58 1993 99 280 0 64 1992 92 890 0 69 1991 71 206 0 58 1990 63 534 0 46 1989 16 302 0 11 1988 0 0 00 Financial performance Edit Financial data of Lexus operations are not disclosed publicly 168 However automotive analysts estimate that the Lexus division contributes a disproportionate share of Toyota s profits relative to its limited production and sales volume 168 Interviews with retired division officials indicate that depending on sales volume vehicle product development cycles and exchange rates Lexus sales have accounted for as much as half of Toyota s annual U S profit in certain years 168 Division executives have employed pricing strategies aimed at sustaining profit margins rather than sales volume with historically fewer price incentives than rival brands 168 In 2006 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 169 In 2009 Interbrand ranked Lexus as Japan s seventh largest brand between Panasonic and Nissan based on revenue earnings and market value 7 Automobiles EditVehicle lineup Edit Further information List of Lexus vehicles The global Lexus lineup features sedans of different size classes including the compact IS model mid size ES and GS models and the full size LS The 2 door coupe range consists of the RC and the LC Former convertibles include the SC and IS C models Sport utility vehicles range in size from the subcompact UX compact NX and mid size RX crossovers to the full size GX and LX Hybrid models include the CT hatchback the discontinued HS and variants of the IS ES GS LS RC LC UX NX RX and LM 170 The F marque line formerly produced a variant of the IS GS and the LFA and currently produces a variant of the RC coupe 170 F marque Edit Further information Lexus F and Lexus F Sport Lexus F marque emblem Lexus produces its highest performance models under its F marque division 101 The name refers to Flagship and Fuji Speedway in Japan whose first corner 27R inspired the shape of the F emblem 171 F marque models are developed by the Lexus Vehicle Performance Development Division 172 The first F marque model the IS F went on sale in 2007 followed by the LFA in 2009 115 A related F Sport performance trim level and factory sanctioned accessory line is available for standard Lexus models such as the IS 250 and IS 350 102 The F Sport trim level commonly includes cosmetic upgrades to the exterior and interior and in some vehicles mechanical upgrades such as an adaptive variable suspension 173 174 F Sport succeeded an earlier in house tuning effort the TRD based L Tuned which had offered performance packages on the IS and GS sedans in the early 2000s decade 175 176 Additions to the performance F Sport marque include the Lexus RC F Sport and Lexus GS F Sport and Lexus LS F Sport 177 Model nomenclature Edit Lexus production models are named alphanumerically using two letter designations followed by three digits The first letter indicates relative status in the Lexus model range ranking 178 and the second letter refers to car body style or type 178 e g LS for luxury sedan The three digits commonly indicate engine displacement in liters multiplied by a factor of one hundred e g 350 for a 3 5 L engine 178 except in the case of turbocharged and hybrid vehicles for which the digits correspond to the displacement of a naturally aspirated engine with equivalent output on hybrids the three digits refer to the combined gasoline electric output 68 179 180 A space is used between the letters and numbers The same letter may be used differently depending on the model S can refer to sedan 178 or sport 81 e g in LS and SC while X refers to luxury utility vehicle or SUV 178 181 For certain models a lower case letter placed after the alphanumeric designation indicates powerplant type h for hybrid d for diesel t for turbocharged 116 while capital letter s placed at the end indicates a class subtype e g L for long wheelbase 69 C for coupe AWD for all wheel drive On F marque models the two letter designation and the letter F are used with no numbers or hyphens e g IS F 116 Design and technology Edit Lexus Remote Touch controller Lexus design has traditionally placed an emphasis on targeting specific vehicle development standards 182 Since the marque s inception design targets have ranged from aerodynamics and ride quality to interior ergonomics 37 183 The backronym IDEAL Impressive Dynamic Elegant Advanced and Lasting is used in the development process 184 Each vehicle is designed according to approximately 500 specific product standards known as Lexus Musts on criteria such as leather seat stitching 185 186 Design elements from the marque s concept vehicle line the LF series including the 2003 LF S and 2004 LF C have been incorporated in production models 187 188 Vehicle cabins have incorporated electroluminescent Optitron gauges 189 SmartAccess a smart key entry and startup system 190 and multimedia features Beginning with the 2010 RX and HS models the Remote Touch system featuring a computer mouse like controller with haptic feedback was introduced 114 191 other models have featured touchscreen controls through the 2009 model year as a navigation screen interface 190 2014 saw the introduction of the next version of Lexus remote touch innovations the Remote Touch Interface Touchpad in the new RC Coupe 192 In 1989 Lexus became among the first premium car marques to equip models with premium audio systems in partnership with stereo firm Nakamichi 193 194 Since 2001 optional surround sound systems are offered via high end audio purveyor Mark Levinson 194 For reduced cabin noise the first LS 400 introduced sandwich steel plating 189 and later models added acoustic glass 195 In 2006 the LS 460 debuted the first ceiling air diffusers and infrared body temperature sensors in a car 196 197 Telematics services include G Book with G Link in Asia and Lexus Enform in North America 198 Eight speed automatic transmission in the IS F and LS 460 Sport In 2006 Lexus incorporated the first production eight speed automatic transmission in an automobile with the LS 460 196 and the gearbox was later adapted for the GS 460 and IS F models Continuously variable transmissions regenerative brakes and electric motors have been used on all Lexus hybrid models 68 In 2007 Lexus executives signaled intentions to equip further models with hybrid powertrains 116 catering to demands for a decrease in both carbon pollution and oil reliance 199 Hybrid models have been differentiated by separate badging and lighting technology in 2008 the LS 600h L became the first production vehicle to use LED headlamps 200 Safety features on Lexus models range from stability and handling programs Vehicle Stability Control and Vehicle Dynamics Integrated Management 201 to backup cameras swivel headlights and sonar warning systems The Lexus Pre Collision System PCS integrates multiple safety systems 201 In 2007 Lexus introduced the first car safety systems with infrared and pedestrian detection capabilities lane keep assist a Driver Monitoring System with facial recognition monitoring of driver attentiveness and rear pre collision whiplash protection as part of the LS 460 PCS 196 As a safety precaution Lexus GPS navigation systems in many regions feature a motion lockout when the vehicle reaches a set speed to prevent distraction navigation inputs are limited while voice input and certain buttons are still accessible This safety feature has attracted criticism because passengers cannot use certain functions when the vehicle is in motion 202 Pre 2007 models came with a hidden manufacturer override option 203 and updated European models allow operation in motion 204 2006 LS 600h and LS 600h L in hybrid form Production models in development have included convertibles crossovers and dedicated hybrids 205 206 Under the F marque Lexus plans to produce high performance vehicles with its first expressions being the IS F and the LFA Lexus officials have also discussed standard production model usage of varying platforms 207 The LS uses a dedicated platform 34 while the entry level Lexus ES had been criticized for being too similar to the Toyota Camry with which it shared platforms until its sixth generation 136 in both styling and powertrain design 208 The Nurburgring test track in Germany has also seen Lexus prototype testing 209 L finesse Edit See also Lexus LF Lexus introduced a new design language known as L finesse in the mid 2000s with its LF series concepts and the 2006 Lexus GS 210 211 L finesse is represented by three Japanese kanji characters which translate as Intriguing Elegance Incisive Simplicity and Seamless Anticipation 211 Design characteristics including a fastback profile lower set grille 212 and the use of both convex and concave surfaces 212 are derived from Japanese cultural motifs e g the phrase kirikaeshi in arrowhead shapes 213 While earlier Lexus models were criticized for reserved and derivative styling and often mistaken for understated domestic market cars 212 automotive design analyses described L finesse as adding a distinctive nature and embrace of Japanese design identity 210 211 Opinions varied for L finesse s debut on the GS Sports Car International s analysis praised the vehicle s in person appearance 214 Automobile Magazine criticized the daring of its forward styling 215 and compared subsequent rival models for design similarities 216 In 2012 the arrival of the redesigned fourth generation Lexus GS featured the introduction of a spindle shaped grille design intended to be used on all forthcoming Lexus models 146 L finesse exhibitions were presented at Milan s Salone del Mobile from 2005 through 2009 217 Production EditAssembly plants Edit Lexus models produced by the Tahara plant in Aichi Japan The first Lexus vehicles were manufactured in Toyota s Tahara plant a computerized manufacturing plant in Japan 170 218 Through the 2000s most Lexus sedan and SUV production has occurred in Japan at the Tahara plant in Aichi and the Miyata plant in Fukuoka 73 170 In addition to the Tahara factory over time Lexus vehicles have been produced at the Miyata plant Toyota Motor Kyushu in Miyawaka Fukuoka the Higashi Fuji plant Kanto Auto Works in Susono Shizuoka and the Yoshiwara plant Araco later Toyota Auto Body in Toyota City Aichi 73 170 Front wheel drive cars such as the ES and HS have been produced in the Fukuoka Prefecture 170 Toyota Motor Kyushu s Kokura plant in Kitakyushu Fukuoka which opened in 2008 is a dedicated hybrid production site for hybrid systems used in Lexus models such as the gasoline electric RX 219 The North American market RX 350 since the 2004 model year is produced at the Cambridge plant Toyota Canada Inc in the city of Cambridge in Ontario Canada which is the first Lexus production site located outside Japan In late 2015 Lexus started to assemble North American spec ES 350 sedans at the Georgetown plant TMMK Inc 220 In January 2020 Toyota Kirloskar Motor of India started assembling the ES sedan in its Bidadi plant Relative to Toyota models Lexus vehicles are built according to different quality control standards 221 222 including more stringent body panel fit tolerances and paint quality requirements 221 223 Their manufacture involves different assembly lines molds welding processes and manufacturing equipment 224 225 Lexus plant workers also undergo a more selective screening process 226 69 Production vehicles are given visual inspections for flaws individually test driven at high speeds and subjected to vibration tests 221 Assembly sites by model 73 170 Plant Owner Location Model s Tahara Toyota Motor Corp Tahara Aichi Prefecture LS GS IS GX RC NXTsutsumi Toyota Motor Corp Toyota City Aichi Prefecture ESKokura Toyota Motor Kyushu Inc Kitakyushu Fukuoka Prefecture CT HS RXMiyata Toyota Motor Kyushu Inc Miyawaka Fukuoka Prefecture ES IS RX NX UXMotomachi Toyota Motor Corp Toyota City Aichi Prefecture LFA LCHigashi Fuji Kanto Auto Works Ltd Susono Shizuoka Prefecture SCYoshiwara Toyota Auto Body Corp Toyota City Aichi Prefecture LXCambridge Toyota Motor Manufacturing Canada Cambridge Ontario RX RXh NXGeorgetown Toyota Motor Manufacturing Kentucky Georgetown Kentucky ESBidadi Toyota Kirloskar Motor Bidadi Karnataka ESQuality rankings Edit In the 2000s decade Consumer Reports named Lexus among the top five most reliable brands in its Annual Car Reliability Surveys of over one million vehicles across the U S 227 228 Service Edit Lexus dealership showroom in Sapporo Hokkaido Japan Lexus has become known for efforts to provide an upscale image particularly with service provided after the sale The waiting areas in service departments are replete with amenities ranging from refreshment bars to indoor putting greens 229 230 Dealerships typically offer complimentary loaner cars or courtesy cars and free car washes 230 and some have added on site cafes and designer boutiques 231 232 Service bays are lined with large picture windows for owners to watch the servicing of their vehicle 233 In 2005 Lexus also began reserving parking lots at major sporting arenas entertainment events and shopping malls with the only requirement for free entry being the ownership of a Lexus vehicle 234 An online owner publication Lexus Magazine 235 features automotive and lifestyle articles and is published online monthly 236 and on a mobile site 237 Since 2002 Lexus has scored consecutive top ratings in the Auto Express 238 239 240 and 76 000 respondent Top Gear customer satisfaction surveys in the UK 241 Lexus has also repeatedly topped the 79 000 respondent J D Power Customer Service Index 242 and Luxury Institute New York surveys in the U S 243 As a result of service satisfaction levels the marque has one of the highest customer loyalty rates in the industry 244 To improve customer service employees are instructed to follow the Lexus Covenant the marque s founding promise which states that Lexus will treat each customer as we would a guest in our home 245 and some dealerships have incorporated training at upscale establishments such as Nordstrom department stores and Ritz Carlton hotels 246 Motorsport Edit Lexus campaigned at the 24 Hours Nurburgring Lexus first entered the motorsport arena in 1999 when its racing unit Team Lexus 247 fielded two GS 400 race vehicles in the Motorola Cup North American Street Stock Championship touring car series In its 1999 inaugural season Team Lexus achieved its first victory with its sixth race at Road Atlanta 248 Led by Sports Car Club of America and International Motor Sports Association driver Chuck Goldsborough based in Baltimore Maryland 249 Team Lexus capitalized on the debut of the first generation Lexus IS by entering three IS 300s in the third race of the 2001 Grand Am Cup season at Phoenix Arizona 250 Team Lexus won its first IS 300 victory that year at the Virginia International Raceway 250 In 2002 Team Lexus competitive efforts in the Grand Am Cup ST1 Street Tuner class achieved victories in the Drivers and Team Championships 248 249 as well as a sweep of the top three finishes at Circuit Mont Tremblant in Quebec Canada 251 After the release of the Lexus brand in the Japanese domestic market in 2005 Lexus sanctioned the entry of four SC 430 coupes in the Super GT series of the All Japan Grand Touring Car Championship in the GT500 class In the first race of the 2006 series an SC 430 took the chequered flag 252 and drivers Andre Lotterer and Juichi Wakisaka raced the SC 430 to capture the GT500 championship for that year 253 In 2007 another SC 430 won the GT500 opening round race 254 In 2006 Lexus raced a hybrid vehicle for the first time entering a GS 450h performance hybrid sedan in partnership with Sigma Advanced Racing Development at the 24 Hours of Tokachi race in Hokkaido Japan 255 Lexus Canada also entered the GS 450h in 2007 s Targa Newfoundland event 256 In 2009 Lexus Super GT Team SC 430 and IS 350 racers won the GT500 and GT300 championships respectively 257 In 2006 2007 and 2008 Lexus won the Rolex Sports Car Series Manufacturers Championship Lexus participation in endurance racing further includes the Rolex 24 Hours of Daytona sanctioned by the Grand American Road Racing Association After entering the Rolex Sports Car Series in 2004 Lexus has won over 15 Rolex Series event races 258 In 2005 Lexus was runner up and in 2006 it won the championship 259 Although Toyota has won this 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 Duran of Chip Ganassi Racing finishing first Lexus Riley prototypes also took three of the top ten spots 260 In 2008 Lexus won its third consecutive win at Daytona 261 For the 2010 season Lexus departed from the Rolex Sports Car Series and Ganassi Racing switched to BMW Dinan engines 262 The LF A prototype also competed on the Nurburgring from 2008 to 2011 in VLN endurance races 263 and in the 24 Hours Nurburgring also with the IS F 264 On 14 May 2011 a CT 200h tuned up by Gazoo Racing competed in the Adenauer ADAC Rundstrecken Trophy a six hour endurance race 265 3GT Racing a partnership of Lexus and Paul Gentilozzi entered two Lexus RC F GT3 at the N American 2017 WeatherTech SportsCar Championship in the GT Daytona class Their first win came in the 2018 WeatherTech SportsCar Championship with Dominik Baumann and Kyle Marcelli at Mid Ohio before winning again with the same pairing at Virginia International Raceway Lexus finished in 8th in their first season in 2017 in the GT Daytona Manufacturer s Championship They then improved to 5th in 2018 with the 14 achieving 5th and the 15 getting 10th in the Team s Championship citation needed For the 2019 WeatherTech SportsCar Championship the running of the Lexus GT3 cars has been transferred to AIM Vasser Sullivan which is a debuting partnership where the driver pairing of Jack Hawksworth and Richard Heistand have currently achieved 2 wins at Mid Ohio before winning the next race at Belle Isle As of the result of Lime Rock Park Lexus are second in the 2019 Manufacturer s Championship and the 12 is third with the 14 in 5th despite that being the winning car citation needed Marketing Edit Lexus 2054 a concept model produced for the film Minority Report From its inception Lexus has been advertised to luxury consumers using specific marketing strategies with a consistent motif used for the marque s advertisements Beginning in 1989 television ads were narrated by actor James Sloyan the voice of Mr Lexus until 2009 36 266 and accompanied by vehicles that performed unusual stunts onscreen 267 The first decade of Lexus commercials 1989 99 consisted primarily of disjunctive verbal descriptions such as relentless pursuit and perfection 268 while vehicles were used to claim superiority in precision idling and interior quiet and comfort on camera 267 Examples included the champagne glass Balance 1989 and rolling Ball Bearing 1992 267 In the 2000s decade commercials included descriptions of features 269 or a narration of the events onscreen and were often targeted at the marque s German competitors 270 An annual December to Remember campaign featured scenes of family members surprising loved ones with the gift of a new Lexus 271 The marque returned to the champagne glass theme in a 2006 LS 460 spot showing the sedan maneuvering between two stacks of glasses using its self parking system and in a 2010 LFA spot showing its engine sound shattering a glass via resonance frequency 272 Lexus LFA Crystallised Wind a full size glass art model Industry observers have attributed Lexus early marketing successes to higher levels of perceived quality and lower prices than competitors which have enabled the marque to attract customers upgrading from mass market cars 12 40 A reputation for dependability bolstered by reliability surveys also became a primary factor in attracting new customers from rival premium makes 273 274 Lexus has since grown to command higher price premiums than rival Japanese makes 275 with new models further increasing in price and reaching the more than 100 000 ultra luxury category long dominated by rival European marques 276 277 278 Automotive analysts have also noted Lexus relative newcomer status as a marketing challenge for the brand 279 although some have debated the requirement of a long history 275 280 European rivals have marketed their decades of heritage and pedigree 281 whereas Lexus reputation rests primarily upon its perceived quality and shared history with parent company Toyota 275 Several analysts have stated that Lexus will have to develop its own heritage over time by highlighting technological innovations and producing substantial products 100 279 Lexus marketing efforts have extended to sporting and charity event sponsorships including the U S Open tennis Grand Slam event from 2005 to 2009 and the United States Golf Association s U S Open U S Women s Open U S Senior Open and U S Amateur tournaments since 2007 282 283 Lexus has organized an annual Champions for Charity golf series in the U S since 1989 284 Endorsement contracts have also been signed with professional athletes Hideki Matsuyama Andy Roddick Annika Sorenstam and Peter Jacobsen 285 Since 2008 Lexus has run the video website L Studio Shows on L Studio include Web Therapy 286 Lexus unveiled its new Experience Amazing tagline in the U S in a 60 second advertisement at the February 2017 Super Bowl LI 287 The new tagline replaced Lexus s previous slogans Amazing in Motion and The Pursuit of Perfection 288 On 30 March 2018 Lexus premiered a fake partnership with 23 and Me during a spot on Saturday Night Live for a pretend program that allows buyers to customize vehicles based on their DNA as an April Fool s Day joke 289 Lexus slogans Edit The Relentless Pursuit of Perfection 1989 2011 The Pursuit of Perfection 2010 2016 Amazing in Motion 2013 2016 Experience Amazing 2017 present See also Edit Cars portalThe Championship by Lexus Slide hoverboard References EditNotes Edit When was Lexus founded Northwest Lexus 28 September 2018 Archived from the original on 2 July 2021 Retrieved 1 May 2020 Greimel Hans 4 December 2019 Chief 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the original on 27 July 2017 Retrieved 9 October 2010 Caulkin Simon 7 November 2004 Vorsprung durch Technik Not any more The Guardian London Archived from the original on 28 February 2021 Retrieved 8 June 2009 Why I ditched Merc for Lexus Agence France Presse 26 May 2006 Archived from the original on 18 September 2006 Retrieved 5 May 2007 a b c Lexus in the lap of latent luxury AutomoBear com 23 September 2004 Archived from the original on 23 May 2006 Retrieved 9 April 2007 Welch David 9 January 2006 A Lexus Aimed at Mercedes S Class BusinessWeek Archived from the original on 13 October 2007 Retrieved 6 May 2007 Pearley Huffman John 19 April 2007 Full Test 2008 Lexus LS 600h L Edmunds com Archived from the original on 11 September 2012 Retrieved 23 May 2011 Maynard Micheline 17 April 2006 Lexus enters ultra luxury arena International Herald Tribune Archived from the original on 20 February 2008 Retrieved 21 November 2007 a b Hanley Mike 15 March 2007 2007 Lexus LS 460 Review Cars com Archived from the original on 13 October 2007 Retrieved 28 September 2007 Laban Brian 3 June 2007 Lexus Launches Big Three MSN Cars UK Archived from the original on 3 April 2007 Retrieved 28 September 2007 Landler Mark 27 July 2007 BMW s Shrine to Horsepower The New York Times Archived from the original on 14 March 2021 Retrieved 28 September 2007 Scott Andrew 30 August 2006 Lexus Drives Promos Courtside for US Open Promo Archived from the original on 28 September 2007 Retrieved 6 May 2007 Luxury Drive USGA Signs Lexus As First Automotive Partner Sports Business Daily January 2007 Retrieved 8 June 2009 Lexus Golf Tourney Benefits Charities The Oregonian 14 June 1997 Lexus Replaces Mercedes As Sorenstam s Automotive Sponsor Sports Business Daily 14 March 2006 Retrieved 25 December 2008 Lisa Kudrow s Web Therapy Headlines Lexus L Studio Launch Tubefilter 23 September 2008 Archived from the original on 3 November 2020 Retrieved 19 November 2017 Oster Erik 23 January 2017 Team One Lil Buck Experience Amazing in Lexus Big Game Spot Ad Week US Archived from the original on 10 April 2018 Retrieved 9 February 2017 Verma Sudip 19 October 2012 The Relentless Pursuit of Perfection The Lexus Brand Strategy Business 2 Community US Archived from the original on 9 September 2017 Retrieved 14 February 2017 Marketer s Brief Lexus plans an April Fool s joke ad for Saturday Night Live Archived from the original on 22 October 2020 Retrieved 1 April 2018 Bibliography Edit Dawson Chester 2004 Lexus The Relentless Pursuit Hoboken NJ Jon Wiley amp Sons ISBN 0 470 82110 8 Long Brian 2001 Lexus The Challenge to Create the Finest Automobile Dorchester Dorset UK Veloce Publishing ISBN 1 901295 81 8 Mahler Jonathan 2004 The Lexus Story The Behind the Scenes Story of the 1 Automotive Luxury Brand in America New York Melcher Media ISBN 0 9717935 7 3 May Matthew E 2006 The Elegant Solution Toyota s Formula for Mastering Innovation Forward by Kevin Roberts New York Free Press ISBN 0 7432 9017 8 LCCN 2006048411 Morgan James M Liker Jeffrey K 2006 The Toyota Product Development System Integrating People Process and Technology New York Productive Press ISBN 1 56327 282 2 External links Edit Wikimedia Commons has media related to Lexus vehicles Official website Japan Archived 1 July 2021 at the Wayback Machine Official website International Archived 1 July 2021 at the Wayback Machine Lexus at Curlie Retrieved from https en wikipedia org w index php title Lexus amp oldid 1147946912, wikipedia, wiki, book, books, library,

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