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is the
luxury vehicle A luxury car is a passenger automobile providing superior comfort levels, features, and equipment. More expensive materials and surface finishes are used, and buyers expect a correspondingly high quality (business), build quality. The term is ...
division of the Japanese automaker
Toyota Motor Corporation is a Japanese Multinational corporation, multinational Automotive industry, automotive manufacturer headquartered in Toyota City, Aichi, Japan. It was founded by Kiichiro Toyoda and incorporated on August 28, 1937. Toyota is the List of manuf ...
. The Lexus
brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's goods or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and ...
is marketed in more than 90 countries and territories worldwide and is Japan's largest-selling make of premium cars. It has ranked among the 10 largest Japanese global brands in market value. Lexus has been headquartered in
Shimoyama, Aichi was a village located in Higashikamo District, east-central Aichi Prefecture, Japan. Population As of April 1, 2004, the village had an estimated population of 5,593 and a population density of 48.9 persons per km2. Its total area was 114.18& ...
, in Japan since 2024. Operational centers are located in
Brussels Brussels, officially the Brussels-Capital Region, (All text and all but one graphic show the English name as Brussels-Capital Region.) is a Communities, regions and language areas of Belgium#Regions, region of Belgium comprising #Municipalit ...
, Belgium, and
Plano, Texas Plano ( ; Spanish language, Spanish for "flat surface" /'plano/) is a city in the U.S. state of Texas, where it is the largest city in Collin County, Texas, Collin County. A small portion of Plano is located in Denton County, Texas, Denton Count ...
, United States. Created at around the same time as Japanese rivals
Honda commonly known as just Honda, is a Japanese multinational corporation, multinational Conglomerate (company), conglomerate automotive manufacturer headquartered in Minato, Tokyo, Japan. Founded in October 1946 by Soichiro Honda, Honda has bee ...
and
Nissan is a Japanese multinational Automotive industry, automobile manufacturer headquartered in Yokohama, Kanagawa, Japan. The company sells its vehicles under the ''Nissan'' and ''Infiniti'' brands, and formerly the ''Datsun'' brand, with in-house ...
created their
Acura Acura is the luxury and performance division of Japanese automaker Honda, based primarily in North America. The brand was launched on March 27, 1986, marketing luxury and performance automobiles. Acura sells cars in the United States, Canada, M ...
and
Infiniti (stylized in all caps) is the luxury vehicle division of the Japanese automaker Nissan. The brand began on November 8, 1989, initially in North America. The marketing network for Infiniti vehicles included dealers in over 50 countries in the 201 ...
luxury divisions respectively, Lexus originated from a corporate project to develop a new premium sedan,
code-name A code name, codename, call sign, or cryptonym is a Code word (figure of speech), code word or name used, sometimes clandestinely, to refer to another name, word, project, or person. Code names are often used for military purposes, or in espiona ...
d F1, which began in 1983 and culminated in the launch of the
Lexus LS The is a series of full-size luxury sedans that have served as the flagship model of Lexus, the luxury division of Toyota, since 1989. For the first four generations, all LS models featured V8 engines and were predominantly rear-wheel-drive ...
in 1989. Subsequently, the division added sedan,
coupé A coupe or coupé (, ) is a passenger car with a sloping or truncated rear roofline and typically with two doors. The term ''coupé'' was first applied to horse-drawn carriages for two passengers without rear-facing seats. It comes from the Fr ...
,
convertible A convertible or cabriolet () is a Car, passenger car that can be driven with or without a roof in place. The methods of retracting and storing the roof vary across eras and manufacturers. A convertible car's design allows an open-air drivin ...
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 Hybrid may refer to: Science * Hybrid (biology), an offspring resulting from cross-breeding ** Hybrid grape, grape varieties produced by cross-breeding two ''Vitis'' species ** Hybridity, the property of a hybrid plant which is a union of two diff ...
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 is the third-largest island of Japan's four main islands and the most southerly of the four largest islands (i.e. excluding Okinawa and the other Ryukyu (''Nansei'') Islands). In the past, it has been known as , and . The historical regio ...
regions, and in particular at Toyota's Tahara,
Aichi is a prefecture of Japan located in the Chūbu region of Honshū. Aichi Prefecture has a population of 7,461,111 () and a geographic area of with a population density of . Aichi Prefecture borders Mie Prefecture to the west, Gifu Prefecture ...
, Chūbu and Miyata,
Fukuoka is the List of Japanese cities by population, sixth-largest city in Japan and the capital city of Fukuoka Prefecture, Japan. The city is built along the shores of Hakata Bay, and has been a center of international commerce since ancient times. ...
, 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 A design is the concept or proposal for an object, process, or system. The word ''design'' refers to something that is or has been intentionally created by a thinking agent, and is sometimes used to refer to the inherent nature of something ...
,
engineering Engineering is the practice of using natural science, mathematics, and the engineering design process to Problem solving#Engineering, solve problems within technology, increase efficiency and productivity, and improve Systems engineering, s ...
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 The term "Japanese domestic market" ("JDM") refers to Japan's home market for vehicles and vehicle parts. Japanese owners contend with a strict motor vehicle inspection and grey markets. JDM is also incorrectly used as a term colloquially to ref ...
in 2005, becoming the first Japanese premium car marque to launch in its
country of origin Country of origin (CO) represents the country or countries of manufacture, production, design, or brand origin where an article or product comes from. For multinational brands, CO may include multiple countries within the value-creation proce ...
. The brand has since debuted in Southeast Asia, Latin America, Europe and other regions, and has introduced
hybrid Hybrid may refer to: Science * Hybrid (biology), an offspring resulting from cross-breeding ** Hybrid grape, grape varieties produced by cross-breeding two ''Vitis'' species ** Hybridity, the property of a hybrid plant which is a union of two diff ...
vehicles in many markets.


History


1980s: The F1 project

The Lexus brand was created around the same time as Japanese rivals
Nissan is a Japanese multinational Automotive industry, automobile manufacturer headquartered in Yokohama, Kanagawa, Japan. The company sells its vehicles under the ''Nissan'' and ''Infiniti'' brands, and formerly the ''Datsun'' brand, with in-house ...
and
Honda commonly known as just Honda, is a Japanese multinational corporation, multinational Conglomerate (company), conglomerate automotive manufacturer headquartered in Minato, Tokyo, Japan. Founded in October 1946 by Soichiro Honda, Honda has bee ...
developed their
Infiniti (stylized in all caps) is the luxury vehicle division of the Japanese automaker Nissan. The brand began on November 8, 1989, initially in North America. The marketing network for Infiniti vehicles included dealers in over 50 countries in the 201 ...
and
Acura Acura is the luxury and performance division of Japanese automaker Honda, based primarily in North America. The brand was launched on March 27, 1986, marketing luxury and performance automobiles. Acura sells cars in the United States, Canada, M ...
premium brands. The Japanese government imposed
voluntary export restraints A voluntary export restraint (VER) or voluntary export restriction is a self-imposed, voluntary restriction implemented by an exporting country, on the volume of its exports to another country. This can be negotiated between governments, or with ...
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 was a Japanese industrialist. He was largely responsible for bringing Toyota Motor Corporation to profitability and worldwide prominence during his tenure as president and later, as chairman. He was succeeded as the president of Toyota by Sho ...
issued a challenge to build the world's best car. The project, code-named F1 ("Flagship One") developed the Lexus LS 400 to expand Toyota's product line in the premium segment. The F1 project followed the
Toyota Supra is a sports car and grand tourer manufactured and developed by the Toyota Motor Corporation beginning in 1978. The name " supra" is a definition from the Latin prefix, meaning "above", "to surpass" or "go beyond". The initial four generations ...
sports car and the premium
Toyota Mark II The is a compact, later mid-size sedan manufactured and marketed in Japan by Toyota between 1968 and 2004. Prior to 1972, the model was marketed as the Toyota Corona Mark II. In most export markets, Toyota marketed the vehicle as the Toyota ...
models. Both the Supra and Mark II were
rear-wheel drive Rear-wheel drive (RWD) is a form of engine and transmission layout used in motor vehicles, in which the engine drives the rear wheels only. Until the late 20th century, rear-wheel drive was the most common configuration for cars. Most rear-whee ...
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 The is a lineup of full-size luxury cars and limousines produced mainly for the Japanese market, serving as Toyota's Flagship#Automotive, flagship car within Japan; globally the unrelated Lexus LS series is Toyota's flagship luxury model. Pro ...
, a domestic, hand-built limousine, and V8-powered model, followed by the inline-six-engined
Toyota Crown The is an automobile which has been produced by Toyota in Japan since 1955. It is primarily a line of mid-size luxury cars that is marketed as an upmarket offering in the Toyota lineup. In North America, the first through fourth generation ...
premium sedan. The Century was conservatively styled for the Japanese market and along with the Crown not slated for export after a restyle in 1982. The F1 designers targeted their new sedan at international markets and began development on a new V8 engine. Japanese manufacturers exported more expensive models in the 1980s due to
voluntary export restraints A voluntary export restraint (VER) or voluntary export restriction is a self-imposed, voluntary restriction implemented by an exporting country, on the volume of its exports to another country. This can be negotiated between governments, or with ...
negotiated by the Japanese government and U.S. trade representatives that restricted mainstream car sales. In 1986,
Honda commonly known as just Honda, is a Japanese multinational corporation, multinational Conglomerate (company), conglomerate automotive manufacturer headquartered in Minato, Tokyo, Japan. Founded in October 1946 by Soichiro Honda, Honda has bee ...
launched its
Acura Acura is the luxury and performance division of Japanese automaker Honda, based primarily in North America. The brand was launched on March 27, 1986, marketing luxury and performance automobiles. Acura sells cars in the United States, Canada, M ...
marque in the U.S., influencing Toyota's plans for a luxury division. The initial Acura model was an export version of the
Honda Legend The is a series of V6 engine, V6-engined executive cars that was produced by Honda between 1985 and 2021, and served as its flagship vehicle. The Legend has also been sold under the Acura Legend, Acura RL, RL and Acura RLX, RLX nameplates — t ...
, called the
Acura Legend The Acura Legend is a mid-size luxury car manufactured by Honda from Japan. It was sold in the U.S. and Canada under Honda's luxury brand, Acura, from 1985 until 1995. It was the first flagship sedan sold under the Acura nameplate, until being ren ...
, itself launched in Japan in 1985 as a rival to the
Toyota Crown The is an automobile which has been produced by Toyota in Japan since 1955. It is primarily a line of mid-size luxury cars that is marketed as an upmarket offering in the Toyota lineup. In North America, the first through fourth generation ...
,
Nissan Cedric The is a large automobile produced by Nissan Motors, Nissan from 1960 to 2015. It was developed to provide upscale transportation, competing with the Prince Skyline and Prince Gloria, Gloria which were later merged into the Nissan family. In late ...
/ Gloria and
Mazda Luce The is an executive car that was produced by Mazda in Japan from 1966 until 1991. It was widely exported as the Mazda 929 from 1973 to 1991 as Mazda's largest sedan. Later generations were installed with luxury items and interiors as the Luce b ...
. In 1987,
Nissan is a Japanese multinational Automotive industry, automobile manufacturer headquartered in Yokohama, Kanagawa, Japan. The company sells its vehicles under the ''Nissan'' and ''Infiniti'' brands, and formerly the ''Datsun'' brand, with in-house ...
unveiled its plans for a premium brand,
Infiniti (stylized in all caps) is the luxury vehicle division of the Japanese automaker Nissan. The brand began on November 8, 1989, initially in North America. The marketing network for Infiniti vehicles included dealers in over 50 countries in the 201 ...
, and revised its
Nissan President The is a Japanese luxury car, luxury Sedan (automobile), sedan that was manufactured and marketed by Nissan from 1965 until 2010 as the flagship of Nissan's range, available only at its ''Nissan Motor Company#Japan, Nissan Store'' dealerships th ...
sedan in standard wheelbase form for export as the
Infiniti Q45 The Infiniti Q45 is a full-size, rear-drive, five-passenger luxury sedan ( F-segment in Europe) marketed as the Core product of Infiniti, Nissan's luxury division — across three generations spanning model years 1989-2006. The first gene ...
, which it launched in 1990.
Mazda is a Japanese Multinational corporation, multinational automotive manufacturer headquartered in Fuchū, Hiroshima (town), Fuchū, Hiroshima Prefecture, Hiroshima, Japan. The company was founded on January 30, 1920, as Toyo Cork Kogyo Co., Ltd. ...
began selling the Luce as the
Mazda 929 The Mazda 929 is a full-size car which was sold by the Japanese automobile manufacturer Mazda between 1973 and 1997. Mazda used the 929 nameplate for export markets only, badge engineering its Luce model until 1991 and then transferring the ...
in North America in 1988 and later began plans to develop an upscale marque to be called
Amati Amati (, ) is the last name of a family of Italian violin makers who lived at Cremona from about 1538 to 1740. Their importance is considered equal to those of the Bergonzi, Guarneri, and Stradivari families. Today, violins created by Nico ...
, but its plans did not come to fruition. Toyota researchers visited the U.S. in May 1985 to conduct
focus group A focus group is a group interview involving a small number (sometimes up to ten) of demographically predefined participants. Their reactions to specific researcher/evaluator-posed questions are studied. Focus groups are used in market researc ...
s and
market research Market research is an organized effort to gather information about target markets and customers. It involves understanding who they are and what they need. It is an important component of business strategy and a major factor in maintaining com ...
on luxury consumers. During that time, several F1 designers rented a home in
Laguna Beach, California Laguna Beach (; ''Laguna'', Spanish language, Spanish for "Lagoon") is a city in Orange County, California, United States. Located in Southern California along the Pacific Ocean, this seaside resort city has a mild year-round climate, scenic c ...
, to observe the lifestyles and tastes of
American upper class The American upper class is a social group within the United States consisting of people who have the highest social rank, due to economic wealth, lineage, and typically educational attainment. The American upper class is estimated to be the ri ...
consumers. Meanwhile, F1 engineering teams conducted prototype testing on locations ranging from the German
autobahn The (; German , ) is the federal controlled-access highway system in Germany. The official term is (abbreviated ''BAB''), which translates as 'federal motorway'. The literal meaning of the word is 'Federal Auto(mobile) Track'. Much of t ...
to U.S. roads. Toyota's market research concluded that a separate
brand A brand is a name, term, design, symbol or any other feature that distinguishes one seller's goods or service from those of other sellers. Brands are used in business, marketing, and advertising for recognition and, importantly, to create and ...
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.


Brand development

In 1986, Toyota's longtime advertising agency
Saatchi & Saatchi Saatchi and Saatchi is a British multinational communications and advertising agency network with 114 offices in 76 countries and over 6,500 staff. It was founded in 1970 and is currently headquartered in London. The parent company of the agency ...
formed a specialized unit,
Team One Team One is a comic book team from Wildstorm Productions. It was published as two separate but intertwined two-issue mini-series, each focusing on different members of the same team and showing events from their different perspectives. Team On ...
, to handle marketing for the new brand. Image consulting firm
Lippincott & Margulies Lippincott is an American brand strategy and design company. Based in New York City, it is part of the Oliver Wyman Group, a business unit of Marsh & McLennan Companies. History Lippincott was founded in 1943 as Dohner & Lippincott by Donald R. ...
was hired to develop a list of 219 prospective names; Vectre, Verone, Chaparel, Calibre and Alexis were chosen as top candidates. While Alexis quickly became the front runner, 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''). As a result, the first letter was removed and the "i" replaced with a "u" to morph the name to Lexus. Theories of the etymology of the Lexus name have suggested it is the combination of the words "luxury" and "elegance", and that it is an acronym for "luxury exports to the U.S." According to Team One interviews, the brand name has no specific meaning and simply evokes a luxurious and technological image. Prior to the release of the first vehicles, database service
LexisNexis LexisNexis is an American data analytics company headquartered in New York, New York. Its products are various databases that are accessed through online portals, including portals for computer-assisted legal research (CALR), newspaper searc ...
obtained a temporary
injunction An injunction is an equitable remedy in the form of a special court order compelling a party to do or refrain from doing certain acts. It was developed by the English courts of equity but its origins go back to Roman law and the equitable rem ...
forbidding the name Lexus from being used because it might cause product confusion. The injunction threatened to delay the division's launch and marketing efforts. The U.S. appeals court lifted the injunction, deciding that there was little likelihood of confusion between the two products. 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." Three firms were involved in the final phase of logo development: Saatchi & Saatchi, Molly Designs and Hunter/Korobkin, Inc. 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. The first teaser ads featuring the Lexus name and logo appeared at the Chicago, Los Angeles and New York auto shows in 1988.


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. 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 A petrol engine (gasoline engine in American and Canadian English) is an internal combustion engine designed to run on petrol (gasoline). Petrol engines can often be adapted to also run on fuels such as Autogas, liquefied petroleum gas and Common ...
and
rear-wheel drive Rear-wheel drive (RWD) is a form of engine and transmission layout used in motor vehicles, in which the engine drives the rear wheels only. Until the late 20th century, rear-wheel drive was the most common configuration for cars. Most rear-whee ...
. The car debuted in January 1989 at the
North American International Auto Show The Detroit Auto Show, formerly known as the North American International Auto Show (NAIAS), is an annual auto show held in Detroit, Michigan. Hosted at Huntington Place (formerly Cobo Center) since 1965, it is among the largest auto shows in ...
in Detroit and official sales of the vehicle began the following September at a network of 81 new Lexus dealerships in the U.S. The LS 400 was sold along with the smaller ES 250, a
rebadged In the automotive industry, rebadging (also known as badge engineering, an intentionally ironic misnomer in that little or no actual engineering takes place) is a form of market segmentation used by automobile manufacturers around the world. T ...
version of the Japanese market Toyota Camry Prominent/Toyota Vista. The launch of Lexus was accompanied by a multimillion-dollar advertising campaign. The LS 400 was praised for its quietness, well-appointed and
ergonomic Ergonomics, also known as human factors or human factors engineering (HFE), is the application of psychological and physiological principles to the engineering and design of products, processes, and systems. Primary goals of human factors engi ...
interior, engine performance, build
quality Quality may refer to: Concepts *Quality (business), the ''non-inferiority'' or ''superiority'' of something *Quality (philosophy), an attribute or a property *Quality (physics), in response theory *Energy quality, used in various science discipli ...
,
aerodynamics Aerodynamics () is the study of the motion of atmosphere of Earth, air, particularly when affected by a solid object, such as an airplane wing. It involves topics covered in the field of fluid dynamics and its subfield of gas dynamics, and is an ...
, fuel economy and value. However, it was criticized by some automobile columnists for derivative styling and a
suspension Suspension or suspended may refer to: Science and engineering * Car suspension * Cell suspension or suspension culture, in biology * Guarded suspension, a software design pattern in concurrent programming suspending a method call and the calling ...
regarded as too compromising of handling for ride comfort. In some markets it was priced against mid-size, six-cylinder
Mercedes-Benz Mercedes-Benz (), commonly referred to simply as Mercedes and occasionally as Benz, is a German automotive brand that was founded in 1926. Mercedes-Benz AG (a subsidiary of the Mercedes-Benz Group, established in 2019) is based in Stuttgart, ...
and
BMW Bayerische Motoren Werke AG, trading as BMW Group (commonly abbreviated to BMW (), sometimes anglicised as Bavarian Motor Works), is a German multinational manufacturer of vehicles and motorcycles headquartered in Munich, Bavaria, Germany. Th ...
models. It was rated by ''
Car and Driver ''Car and Driver'' (''CD'' or ''C/D'') is an American automotive enthusiast magazine first published in 1955. In 2006 its total circulation was 1.23 million. It is owned by Hearst Magazines, who purchased it from its prior owner Hachette Fi ...
'' magazine as better than the higher-priced Mercedes-Benz 420 SEL and BMW 735i in terms of ride, handling and performance. The LS 400 also won motoring awards from automotive publications including ''
Automobile Magazine An automobile magazine is a magazine with news and reports on cars and the Automotive industry, automobile industry. Automobile magazines may feature new car tests and comparisons, which describe advantages and disadvantages of similar models ...
'' and '' Wheels Magazine''. 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. 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. 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. This response was covered in media publications and helped establish the marque's early reputation for
customer service Customer service is the assistance and advice provided by a company to those who buy or use its products or services, either in person or remotely. Customer service is often practiced in a way that reflects the strategies and values of a firm, and ...
. 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. 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. Following initial models, plans called for the addition of a sports coupe along with a redesigned ES sedan.


1990s: Growth and expansion

In 1990, during its first full year of sales, Lexus sold 63,594 LS 400 and ES 250 sedans in the U.S., the majority being the LS model. That year, Lexus also began limited exports to the United Kingdom, Switzerland, Canada and Australia. In 1991, Lexus launched its first sports coupe, the SC 400, which shared the LS 400s V8 engine and rear-wheel drive design. This was followed by the second generation ES 300 sedan, which succeeded the ES 250 and became Lexus' top seller. At the conclusion of 1991, Lexus had become the top-selling premium car import in the U.S., with sales reaching 71,206 vehicles. That year, Lexus ranked highest in
J.D. Power and Associates J.D. Power is an American data analytics, software, and consumer intelligence company founded in 1968. The company specializes in the use of big data, artificial intelligence, and algorithmic models examining consumer behavior. The firm's busine ...
' studies on initial vehicle quality, customer satisfaction and sales satisfaction for the first time. The marque also began increasing U.S. model prices past those of comparable American premium makes, but still below high-end European models. By 1992, the LS 400's base price had risen 18 percent. 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 The is an automobile which has been produced by Toyota in Japan since 1955. It is primarily a line of mid-size luxury cars that is marketed as an upmarket offering in the Toyota lineup. In North America, the first through fourth generation ...
, which had sold for two years prior in Japan. The GS 300 was priced below the LS 400 in the marque's lineup. 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. The marque introduced the second generation LS 400 in 1994. In May 1995, sales were threatened by the U.S. government's proposal of 100 percent
tariff A tariff or import tax is a duty (tax), duty imposed by a national Government, government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods ...
s on upscale Japanese cars in response to the widening U.S.-Japan
trade deficit Balance of trade is the difference between the monetary value of a nation's exports and imports of goods over a certain time period. Sometimes, trade in services is also included in the balance of trade but the official IMF definition only consi ...
. SUVs were exempt from the proposed sanctions. Normal sales operations resumed by late 1995 when the Japanese auto manufacturers collectively agreed to greater American investments and the tariffs were not enacted. In 1996, Lexus debuted its first sport utility vehicle, the LX 450, 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. Lexus added the first luxury-branded
crossover SUV A crossover, crossover SUV, or crossover utility vehicle (CUV) is a type of automobile with an increased ride height that is built on unibody chassis construction shared with passenger cars, as opposed to traditional sport utility vehicles ( ...
, the RX 300 in 1998. The RX crossover targeted
suburban A suburb (more broadly suburban area) is an area within a metropolitan area. They are oftentimes where most of a metropolitan areas jobs are located with some being predominantly residential. They can either be denser or less densely populated ...
buyers who desired an upmarket SUV but did not need the LX's off-road capability. It was particularly successful, eventually becoming the marque's top-selling model ahead of the ES sedan. The same year, Lexus made its debut in South America's most populous country when it launched sales in Brazil. In 1999, the IS was introduced, an entry-level sport sedan. Lexus also recorded its 1 millionth vehicle sold in the U.S. market, being ranked as the top-selling premium car maker in the U.S. overall.


2000s: Global reorganization

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. The GX 470 mid-size SUV debuted in 2002, followed by the second generation RX 330 in 2003. The following year, Lexus recorded its 2 millionth U.S. vehicle sale, and the first luxury-branded production hybrid SUV, the RX 400h. This vehicle used Toyota's
Hybrid Synergy Drive Hybrid Synergy Drive system (HSD), also known as Toyota Hybrid System II, is the brand name of Toyota Motor Corporation for the hybrid car drive train technology used in vehicles with the Toyota and Lexus marques. First introduced on the Toyota ...
system that combined gasoline and electric motors. In 2005, Lexus completed an organizational separation from parent company Toyota, with dedicated design, engineering, training, and manufacturing centers working exclusively for the division. 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. Executives aimed to increase Lexus sales outside of its largest market in the U.S. To accompany this expansion, next generation Lexus vehicles were redesigned as "global models" for international release. In the European market, where Lexus had long faced struggling sales owing to low brand recognition, few dedicated dealerships, and 1990s
import quota An import quota is a type of trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. An import embargo or import ban is essentially a zero-level import quota. Quotas, ...
s, the marque announced plans to introduce hybrid and diesel powertrains, increase the number of Lexus dealerships, and expand operations in emerging markets such as Russia. Lexus' arrival in the Japanese market in July 2005 marked the first introduction of a Japanese premium car marque in the domestic market. 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 Toyota vehicles in Japan are distributed to numerous dealership chains throughout the country. Up to May 2020, each dealership chain had a different product offering, with some models restricted to one chain to maintain exclusivity. Since May 2020 ...
, 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. Lexus models sold in Japan featured higher specifications and a price premium compared with their discontinued Toyota counterparts. Sales for the first half-year were slower than expected, affected by the contraction of the domestic auto market and price increases, but improved in subsequent months with an expanded lineup. Through the mid-2000s, Lexus experienced sales successes in South Korea and Taiwan, becoming the top-selling import make in both markets in 2005; the marque also sold well in the Middle East, where it ranked first or second among rivals in multiple countries, and in Australia, where Lexus reached third in luxury car sales in 2006. Division executives in 2006 announced an expansion goal from 68 countries to 76 worldwide by 2010. By the end of the decade, this expansion resulted in official launches in Malaysia and South Africa in 2006, Indonesia in 2007, Chile in 2008, and the Philippines in 2009.Mendoza, Al (2009-01-22). "Lexus unleashed in historic glory". ''Business Mirror.'' Retrieved on 2009-02-02.


Hybrids and F models

In 2006, Lexus began sales of the GS 450h, a V6 hybrid performance sedan, and launched the fourth generation LS line, comprising both standard- and long-
wheelbase In both road and rail vehicles, the wheelbase is the horizontal distance between the centers of the front and rear wheels. For road vehicles with more than two axles (e.g. some trucks), the wheelbase is the distance between the steering (front ...
V8 (LS 460 and LS 460 L) and hybrid (LS 600h and LS 600h L) versions. 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. By the end of 2006, Lexus' annual sales had reached 475,000 vehicles worldwide. 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, accompanied by a concept car, the LF-A. In October 2007, Lexus entered the
Specialty Equipment Market Association Specialty Equipment Market Association (SEMA) of the automotive aftermarket was formed in 1963 by Paul Schiefer, Roy Richter, Ed Iskenderian, Els Lohn, Willie Garner, Bob Hedman, Robert E. Wyman, John Bartlett, Phil Weiand Jr, Al Segal, Dean Moo ...
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. Increased emphasis on sporty models was an effort to target rivals from Mercedes-Benz's AMG and BMW's M divisions. Models such as the SC 400 and GS 400 had received favorable reactions from sport luxury buyers, most Lexus models had been characterized as favoring comfort over sporty road feel and handling, compared with European rivals. By the end of 2007, Lexus annual worldwide sales had surpassed 500,000 vehicles, and the marque ranked as the top-selling premium import in China for the first time. The largest sales markets in order of size for 2007 were the U.S., Japan, the UK, China, Canada, and Russia.Tierney, Christine (2007-08-07). "Lexus aims to conquer globe with luxury sales". ''Detroit News''. Retrieved 2007-09-28. In 2008, amidst the
late-2000s recession The Great Recession was a period of market decline in economies around the world that occurred from late 2007 to mid-2009.
and a weakened world car market, global sales fell 16 percent to 435,000,"2009 Lexus sales" (in Japanese). Gazoo/レクサス. 2009. Retrieved 2009-04-22. with declines in markets such as the U.S. and Europe where deliveries fell by 21 percent and 27.5 percent, respectively. In 2009, the marque launched the HS 250h, 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 production LFA exotic coupe. In late 2009, citing higher sales of hybrid models over their petrol counterparts, Lexus announced plans to become a hybrid-only marque in Europe. By the end of the decade, Lexus ranked as the fourth-largest premium car make in the world by volume, and was the number one selling premium car marque in the U.S. for 10 consecutive years.


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.Lewis, Georgia (2009-11-04). "Lexus 'resets its compass' to cope with new global economic realities". The National. Retrieved 2010-07-08. Sales in the U.S. held steady despite the 2009–2010 Toyota vehicle recalls, several of which included Lexus models. The ES 350 and certain IS models were affected by a recall for potentially jamming floor mats, while parent company Toyota bore the brunt of negative publicity amid investigations over its series of product recalls and problem rates per-vehicle. The redesigned GX 460 was also voluntarily recalled in April 2010 for a
software update A patch is data that is intended to be used to modify an existing software resource such as a program or a file, often to fix bugs and security vulnerabilities. A patch may be created to improve functionality, usability, or performance. A pa ...
, one week after ''
Consumer Reports Consumer Reports (CR), formerly Consumers Union (CU), is an American nonprofit consumer organization dedicated to independent product testing, investigative journalism, consumer-oriented research, public education, and consumer advocacy. Founded ...
'' issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow
stability control Electronic stability control (ESC), also referred to as electronic stability program (ESP) or dynamic stability control (DSC), is a computerized technology that improves a vehicle's stability by detecting and reducing loss of traction ( skiddi ...
response to a high-speed emergency turn. Although the publication knew of no reported incidents, the GX 460 received updated stability control software. In late 2010 and early 2011, Lexus began sales of the CT 200h, a compact four-door hybrid
hatchback A hatchback is a car body style, car body configuration with a rear door that swings upward to provide access to the main interior of the car as a cargo area rather than just to a separated trunk. Hatchbacks may feature fold-down second-row sea ...
designed for Europe, in multiple markets. 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. 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. Lexus' U.S. executives stated that due to vehicle shortages amidst close competition from BMW, Mercedes-Benz, and
Audi Audi AG () is a German automotive manufacturer of luxury vehicles headquartered in Ingolstadt, Bavaria, Germany. A subsidiary of the Volkswagen Group, Audi produces vehicles in nine production facilities worldwide. The origins of the compa ...
, the marque would not remain the country's top-selling premium car brand. Cumulative sales results for 2011 indicated a 14 percent sales drop in the U.S. market, along with sales increases of 40 percent and 27 percent in Europe and Japan respectively, for a global sales total of 410,000 units. 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. 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. Subsequently, Toyota chairman
Akio Toyoda is a Japanese business executive who is the chairman of Toyota Motor Corporation. He was previously the company's president and chief executive officer (CEO). Toyoda is a great-grandson of the industrialist, Sakichi Toyoda, and a grandson of bot ...
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. 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. In April 2012, the sixth generation ES line, including ES 350 and ES 300h variants, debuted at the
New York International Auto Show The New York International Auto Show is an annual auto show that is held in Manhattan, New York City in late March or early April. It is held at the Jacob Javits Convention Center. It usually opens on or just before Easter weekend and closes ...
. 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 The National Development and Reform Commission (NDRC) is the third-ranked executive department of the State Council of the People's Republic of China, which functions as a macroeconomic management agency. Established as the State Planning C ...
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. 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 A limousine ( or ), or limo () for short, is a large, chauffeur-driven luxury vehicle with a partition between the driver compartment and the passenger compartment which can be operated mechanically by hand or by a button electronically. A luxu ...
version of the third-generation
Toyota Alphard The is a minivan produced by the Japanese automaker Toyota since 2002. It is available as a seven or eight-seater with petrol and hybrid engine options. Hybrid variants have been available since 2003, which incorporates Toyota's Hybrid Syne ...
would be sold as the Lexus LM. It was also announced that Lexus would finally enter the market in Mexico in 2021 with some of the vehicles in their lineup. In October 2019, Lexus announced that it will be launching the brand's first all-battery
electric vehicle An electric vehicle (EV) is a motor vehicle whose propulsion is powered fully or mostly by electricity. EVs encompass a wide range of transportation modes, including road vehicle, road and rail vehicles, electric boats and Submersible, submer ...
in 2020, which is the UX 300e. In June 2023, Lexus introduced its first vehicle in the B-segment, the LBX, which went on sale in Europe, Japan, Australia and Southeast Asia.


Corporate affairs


Operations

Lexus International coordinates the worldwide operations of Toyota's luxury division from the brand's global headquarters, located in
Nagoya is the largest city in the Chūbu region of Japan. It is the list of cities in Japan, fourth-most populous city in Japan, with a population of 2.3million in 2020, and the principal city of the Chūkyō metropolitan area, which is the List of ...
, Aichi. Corporate entities further include the brand's Japan Sales and Marketing and global Product and Marketing Planning divisions. While organizationally separate from its parent company, Lexus International reports directly to Toyota chief executive officer Akio Toyoda. In the U.S., brand operations are managed by the U.S. Lexus division, which is headquartered in
Plano, Texas Plano ( ; Spanish language, Spanish for "flat surface" /'plano/) is a city in the U.S. state of Texas, where it is the largest city in Collin County, Texas, Collin County. A small portion of Plano is located in Denton County, Texas, Denton Count ...
. In Europe, Lexus operations are managed by Lexus Europe, located in Brussels. Companion design facilities are located in Southern California and central Japan, with the head design studio devoted entirely to Lexus models in Toyota City, Aichi. 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, with separately owned and operated Lexus
showroom A plumbing fixture showroom, Canada, 1921 A showroom is a large space used to display products or show entertainment. Marketing location A showroom is a large space used to display products for sale, such as automobiles, furniture, appliances ...
s. By contrast, in Japan all 143 dealerships in the country are owned and operated by Lexus. 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, and in Costa Rica, Lexus vehicles are sold via regional distributor Purdy Motors S.A. Other officially sanctioned regional distributors have sold Lexus models prior to the launch of, or in absence of, a dedicated dealership network. The Lexus brand launched in the Indian market in 2017, with the models RX450h, LX450d, LX570, ES300h, NX, LS. Dealerships in
Mumbai Mumbai ( ; ), also known as Bombay ( ; its official name until 1995), is the capital city of the Indian state of Maharashtra. Mumbai is the financial capital and the most populous city proper of India with an estimated population of 12 ...
,
Delhi Delhi, officially the National Capital Territory (NCT) of Delhi, is a city and a union territory of India containing New Delhi, the capital of India. Straddling the Yamuna river, but spread chiefly to the west, or beyond its Bank (geography ...
,
Gurgaon Gurgaon (), officially named Gurugram (), is a satellite city of Delhi and administrative headquarters of Gurgaon district, located in the northern Indian state of Haryana. It is situated near the Delhi–Haryana border, about southwest ...
, and
Bangalore Bengaluru, also known as Bangalore (List of renamed places in India#Karnataka, its official name until 1 November 2014), is the Capital city, capital and largest city of the southern States and union territories of India, Indian state of Kar ...
became operational in March 2017, when the brand began sales in India with a second set of dealerships opening in
Chandigarh Chandigarh is a city and union territory in northern India, serving as the shared capital of the states of Punjab and Haryana. Situated near the foothills of the Shivalik range of Himalayas, it borders Haryana to the east and Punjab in the ...
,
Kochi Kochi ( , ), List of renamed Indian cities and states#Kerala, formerly known as Cochin ( ), is a major port city along the Malabar Coast of India bordering the Laccadive Sea. It is part of the Ernakulam district, district of Ernakulam in the ...
, and
Chennai Chennai, also known as Madras (List of renamed places in India#Tamil Nadu, its official name until 1996), is the capital city, capital and List of cities in Tamil Nadu by population, largest city of Tamil Nadu, the southernmost states and ...
toward the end of 2017. This made Lexus the fifth luxury brand to be launched in India, after Mercedes-Benz,
Porsche Dr. Ing. h.c. F. Porsche AG, usually shortened to Porsche (; see below), is a German automobile manufacturer specializing in luxury, high-performance sports cars, SUVs and sedans, headquartered in Stuttgart, Baden-Württemberg, Germany. Th ...
, 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. 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. Global sales of Lexus vehicles increased by 12 percent in 2015 to reach another annual sales record with 652,000 units sold worldwide. Global cumulative sales of Lexus brand
hybrid electric cars Hybrid may refer to: Science * Hybrid (biology), an offspring resulting from cross-breeding ** Hybrid grape, grape varieties produced by cross-breeding two ''Vitis'' species ** Hybridity, the property of a hybrid plant which is a union of two diff ...
reached the 500,000 mark in November 2012. The 1 million sales milestone was achieved in March 2016. The Lexus RX 400h/RX 450h ranks as the top selling Lexus hybrid with 335,000 units delivered worldwide , followed by the Lexus CT 200h with 267,000 units. Lexus has not sold as well in Europe as it has in the rest of the world where it is marketed. This is allegedly due to suffering from smaller brand recognition, image, and a less-developed dealership network. In European markets, the Lexus LS has ranked behind BMW, Mercedes-Benz, Audi, and
Jaguar The jaguar (''Panthera onca'') is a large felidae, cat species and the only extant taxon, living member of the genus ''Panthera'' that is native to the Americas. With a body length of up to and a weight of up to , it is the biggest cat spe ...
in flagship luxury car sales. 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 In marketing and consumer behaviour, brand loyalty describes a consumer's persistent positive feelings towards a familiar brand and their dedication to purchasing the brand's products and/or services repeatedly regardless of deficiencies, a ...
to established domestic marques. 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. 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 Cambridge is a city in the Regional Municipality of Waterloo, Ontario, Canada, located at the confluence of the Grand River (Ontario), Grand and Speed River, Speed rivers, in the central part of the Ontario Peninsula. The city had a population ...
, for North America, and the ES, which is also produced in
Georgetown, Kentucky Georgetown is a home rule-class city in Scott County, Kentucky, United States. The population was 37,086 at the 2020 census. It is the sixth-most populous city in Kentucky. It is the seat of its county. It was originally called Lebanon whe ...
. 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.


Financial performance

Financial data of Lexus operations are not disclosed publicly. However, automotive analysts estimate that the Lexus division contributes a disproportionate share of Toyota's profits, relative to its limited production and sales volume. Interviews with retired division officials indicate that depending on sales volume, vehicle
product development New product development (NPD) or product development in business and engineering covers the complete process of launching a new product to the market. Product development also includes the renewal of an existing product and introducing a product ...
cycles, and
exchange rate In finance, an exchange rate is the rate at which one currency will be exchanged for another currency. Currencies are most commonly national currencies, but may be sub-national as in the case of Hong Kong or supra-national as in the case of ...
s, Lexus sales have accounted for as much as half of Toyota's annual U.S. profit in certain years. Division executives have employed pricing strategies aimed at sustaining
profit margin Profit margin is a financial ratio that measures the percentage of profit earned by a company in relation to its revenue. Expressed as a percentage, it indicates how much profit the company makes for every dollar of revenue generated. Profit margi ...
s rather than sales volume, with historically fewer price
incentive In general, incentives are anything that persuade a person or organization to alter their behavior to produce the desired outcome. The laws of economists and of behavior state that higher incentives amount to greater levels of effort and therefo ...
s than rival brands. 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. In 2009, Interbrand ranked Lexus as Japan's seventh largest brand, between
Panasonic is a Japanese multinational electronics manufacturer, headquartered in Kadoma, Osaka, Kadoma, Japan. It was founded in 1918 as in Fukushima-ku, Osaka, Fukushima by Kōnosuke Matsushita. The company was incorporated in 1935 and renamed and c ...
and Nissan, based on revenue, earnings, and market value.


Automobiles


Vehicle lineup

The global Lexus lineup features sedans of different size classes, including the
compact Compact as used in politics may refer broadly to a pact or treaty; in more specific cases it may refer to: * Interstate compact, a type of agreement used by U.S. states * Blood compact, an ancient ritual of the Philippines * Compact government, a t ...
IS model,
mid-size Mid-size—also known as intermediate—is a vehicle size class which originated in the United States and is used for cars larger than compact cars and smaller than full-size cars. "Large family car" is a UK term and a part of the D-segment in t ...
ES models, and the
full-size Full-size car—also known as large car—is a vehicle size class which originated in the United States and is used for cars larger than mid-size cars. It is the largest size class for cars. In the United Kingdom, this class is referred to as ...
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, the discontinued HS and GS, and variants of the IS, ES, LS, RC, LC, LBX, UX, NX, RX, TX and LM. The F marque line formerly produced a variant of the IS, GS and the LFA and currently produces a variant of the RC coupe.


F marque

Lexus produces its highest-performance models under its F marque division. The name refers to Flagship and
Fuji Speedway is a motorsport race track standing in the foothills of Mount Fuji, in Oyama, Shizuoka, Oyama, Suntō District, Shizuoka, Suntō District, Shizuoka Prefecture, Japan. It was built in the early 1960s. In the 1980s, Fuji Speedway was used for the ...
in Japan, whose first corner, 27R, inspired the shape of the "''F''" emblem. F marque models are developed by the Lexus Vehicle Performance Development Division. The first F marque model, the IS F, went on sale in 2007, followed by the LFA in 2009. 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. 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. 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). Additions to the performance F Sport marque include the Lexus RC F Sport and Lexus GS F Sport and Lexus LS F Sport.


Model nomenclature

Lexus production models are named
alphanumeric Alphanumericals or alphanumeric characters are any collection of number characters and letters in a certain language. Sometimes such characters may be mistaken one for the other. Merriam-Webster suggests that the term "alphanumeric" may often ...
ally using two-letter designations followed by three digits. The first letter indicates relative status in the Lexus model range (
ranking A ranking is a relationship between a set of items, often recorded in a list, such that, for any two items, the first is either "ranked higher than", "ranked lower than", or "ranked equal to" the second. In mathematics, this is known as a weak ...
), and the second letter refers to
car body style There are many types of car body styles. They vary depending on intended use, market position, location, and the era they were made. Current styles Buggy (automobile), Buggy Lightweight off-road vehicle with sparse bodywork. Originally tw ...
or type (e.g. LS for 'luxury sedan'). The three digits commonly indicate
engine displacement Engine displacement is the measure of the cylinder volume swept by all of the pistons of a piston engine, excluding the combustion chambers. It is commonly used as an expression of an engine's size, and by extension as an indicator of the ...
in liters multiplied by a factor of one hundred (e.g. 350 for a 3.5 L engine), except in the case of turbocharged and hybrid vehicles, for which the digits correspond to the displacement of a
naturally aspirated engine A naturally aspirated engine, also known as a normally aspirated engine, and abbreviated to N/A or NA, is an internal combustion engine in which air intake depends solely on atmospheric pressure and does not have forced induction through a turboc ...
with equivalent output (on hybrids, the three digits refer to the combined gasoline-electric output). 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' or 'sport' (e.g. in LS and SC), while 'X' refers to ' luxury utility vehicle' or SUV. For certain models, a
lower case Letter case is the distinction between the letters that are in larger uppercase or capitals (more formally ''majuscule'') and smaller lowercase (more formally '' minuscule'') in the written representation of certain languages. The writing system ...
letter placed after the alphanumeric designation indicates powerplant type ('h' for hybrid, 'd' for diesel, 't' for turbocharged), while
capital letter Letter case is the distinction between the letters that are in larger uppercase or capitals (more formally ''majuscule'') and smaller lowercase (more formally '' minuscule'') in the written representation of certain languages. The writing system ...
(s) placed at the end indicates a class subtype (e.g. 'L' for long-wheelbase, 'C' for coupe, 'AWD' for
all-wheel drive An all-wheel drive vehicle (AWD vehicle) is one with a powertrain capable of providing power to all its wheels, whether full-time or on-demand. Types The most common forms of all-wheel drive are: ;1x1 : All unicycles Reflects one axle with ...
). On F marque models, the two-letter designation and the letter 'F' are used with no numbers or hyphens (e.g. IS F).


Design and technology

Lexus design has traditionally placed an emphasis on targeting specific vehicle development standards. Since the marque's inception, design targets have ranged from aerodynamics and
ride quality Ride quality refers to a vehicle's effectiveness in insulating the occupants from undulations in the road surface such as bumps or corrugations. A vehicle with good ride quality provides comfort for the driver and the passengers. Importance Good ...
to interior ergonomics. The
backronym A backronym is an acronym formed from an already existing word by expanding its letters into the words of a phrase. Backronyms may be invented with either serious or humorous intent, or they may be a type of false etymology or folk etymology. The ...
"IDEAL" ("Impressive, Dynamic, Elegant, Advanced, and Lasting") is used in the development process. Each vehicle is designed according to approximately 500 specific product standards, known as "Lexus Musts", on criteria such as
leather Leather is a strong, flexible and durable material obtained from the tanning (leather), tanning, or chemical treatment, of animal skins and hides to prevent decay. The most common leathers come from cattle, sheep, goats, equine animals, buffal ...
seat stitching. 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. Vehicle cabins have incorporated
electroluminescent Electroluminescence (EL) is an optical and electrical phenomenon, in which a material emits light in response to the passage of an electric current or to a strong electric field. This is distinct from black body light emission resulting from ...
Optitron gauges, SmartAccess, a
smart key A smart key is a vehicular passive entry system developed by Siemens in 1995 and introduced by Mercedes-Benz under the name "Keyless-Go" in 1998 on the W220 S-Class, after the design patent was filed by Daimler-Benz on May 17, 1997. Numerous ma ...
entry and startup system, and multimedia features. Beginning with the 2010 RX and HS models, the Remote Touch system, featuring a
computer mouse A computer mouse (plural mice; also mouses) is a hand-held pointing device that detects Plane (mathematics), two-dimensional motion relative to a surface. This motion is typically translated into the motion of the Cursor (user interface)#Po ...
-like controller with haptic feedback, was introduced; other models have featured
touchscreen A touchscreen (or touch screen) is a type of electronic visual display, display that can detect touch input from a user. It consists of both an input device (a touch panel) and an output device (a visual display). The touch panel is typically l ...
controls (through the 2009 model year) as a navigation screen interface. 2014 saw the introduction of the next version of Lexus' remote-touch innovations—the Remote Touch Interface Touchpad in the new RC Coupe. In 1989, Lexus became among the first premium car marques to equip models with premium audio systems, in partnership with stereo firm Nakamichi. Since 2001, optional
surround sound Surround sound is a technique for enriching the fidelity and depth of sound reproduction by using multiple audio channels from speakers that surround the listener ( surround channels). Its first application was in movie theaters. Prior to ...
systems are offered via
high-end audio High-end audio is a class of consumer home audio equipment marketed to audiophiles on the basis of high price or quality, and esoteric or novel sound reproduction technologies. The term can refer simply to the price, to the build quality of th ...
purveyor Mark Levinson. For reduced cabin noise, the first LS 400 introduced sandwich
steel Steel is an alloy of iron and carbon that demonstrates improved mechanical properties compared to the pure form of iron. Due to steel's high Young's modulus, elastic modulus, Yield (engineering), yield strength, Fracture, fracture strength a ...
plating, and later models added acoustic glass. In 2006, the LS 460 debuted the first ceiling air diffusers and
infrared Infrared (IR; sometimes called infrared light) is electromagnetic radiation (EMR) with wavelengths longer than that of visible light but shorter than microwaves. The infrared spectral band begins with the waves that are just longer than those ...
body temperature sensors in a car.
Telematics Telematics is an interdisciplinary field encompassing telecommunications, vehicular technologies (road transport, road safety, etc.), electrical engineering (sensors, instrumentation, wireless communications, etc.), and computer science (multimedia ...
services include G-Book with G-Link in Asia and Lexus Enform in North America. In 2006, Lexus incorporated the first production eight-speed
automatic transmission An automatic transmission (AT) or automatic gearbox is a multi-speed transmission (mechanics), transmission used in motor vehicles that does not require any input from the driver to change forward gears under normal driving conditions. The 1904 ...
in an automobile with the LS 460, and the gearbox was later adapted for the GS 460 and IS F models.
Continuously variable transmission A continuously variable transmission (CVT) is an automated Transmission (mechanical device), transmission that can change through a continuous range of gear ratios, typically resulting in better fuel economy in gasoline applications. This contr ...
s,
regenerative brake Regenerative braking is an energy recovery mechanism that slows down a moving vehicle or object by converting its kinetic energy or potential energy into a form that can be either used immediately or stored until needed. Typically, regenerati ...
s, and electric motors have been used on all Lexus hybrid models. In 2007, Lexus executives signaled intentions to equip further models with hybrid powertrains, catering to demands for a decrease in both carbon pollution and oil reliance. 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 A light-emitting diode (LED) is a semiconductor device that emits light when current flows through it. Electrons in the semiconductor recombine with electron holes, releasing energy in the form of photons. The color of the light (corresp ...
headlamps A headlamp is a lamp attached to the front of a vehicle to illuminate the road ahead. Headlamps are also often called headlights, but in the most precise usage, ''headlamp'' is the term for the device itself and ''headlight'' is the term for t ...
. Safety features on Lexus models range from stability and handling programs (
Vehicle Stability Control Electronic stability control (ESC), also referred to as electronic stability program (ESP) or dynamic stability control (DSC), is a computerized technology that improves a car handling, vehicle's stability by detecting and reducing loss of Tract ...
and Vehicle Dynamics Integrated Management) to backup cameras, swivel headlights, and sonar warning systems. The Lexus Pre-Collision System (PCS) integrates multiple safety systems. 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 Facial recognition or face recognition may refer to: *Face detection, often a step done before facial recognition *Face perception, the process by which the human brain understands and interprets the face *Pareidolia, which involves, in part, seein ...
monitoring of driver attentiveness, and rear pre-collision whiplash protection, as part of the LS 460 PCS. 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. Pre-2007 models came with a hidden manufacturer override option, and updated European models allow operation in motion. Production models in development have included convertibles, crossovers, and dedicated hybrids. 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. The LS uses a dedicated platform, 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, in both styling and powertrain design. The
Nürburgring The () is a 150,000-person capacity motorsports complex located in the town of Nürburg, Rhineland-Palatinate, Germany. It features a Grand Prix motor racing, Grand Prix race track built in 1984, and a long configuration, built in the 1920s ...
test track in Germany has also seen Lexus prototype testing.


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. L-finesse is represented by three Japanese kanji characters which translate as "Intriguing Elegance, Incisive Simplicity, and Seamless Anticipation". Design characteristics, including a fastback profile, lower-set Grille (car), grille, and the use of both convex and concave surfaces, are derived from Japanese cultural motifs (e.g. the phrase ''kirikaeshi'' in arrowhead shapes). While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars, automotive design analyses described L-finesse as adding a distinctive nature and embrace of Japanese design identity. Opinions varied for L-finesse's debut on the GS; ''Sports Car International'' analysis praised the vehicle's in-person appearance; ''Automobile Magazine'' criticized the daring of its forward styling, and compared subsequent rival models for design similarities. 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. L-finesse exhibitions were presented at Milan's Salone del Mobile from 2005 through 2009.


Production


Assembly plants

The first Lexus vehicles were manufactured in Toyota's Tahara plant, a computerized manufacturing plant in Japan. 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. 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. Front-wheel drive cars, such as the ES and HS, have been produced in the Fukuoka Prefecture. Toyota Motor Kyushu's Kokura plant in Kitakyushu, 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. 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, Ontario, 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 (Toyota Motor Manufacturing Kentucky, TMMK, Inc.). In January 2020, Toyota Kirloskar Motor of India started assembling the ES sedan in its Bidadi plant. Toyota planned to produce Lexus-branded EVs in its Shanghai factory beginning in 2027, which will be wholly-owned (the second after Tesla, Inc., Tesla's Gigafactory Shanghai and the first by a Japanese automaker). Relative to Toyota models, Lexus vehicles are built according to different quality control standards, including more stringent body panel fit tolerances and paint quality requirements. Their manufacture involves different assembly lines, molds, welding processes, and manufacturing equipment. Lexus plant workers also undergo a more selective screening process. Production vehicles are given visual inspections for flaws, individually test-driven at high speeds, and subjected to vibration tests.


Quality rankings

In the 2000s (decade), ''
Consumer Reports Consumer Reports (CR), formerly Consumers Union (CU), is an American nonprofit consumer organization dedicated to independent product testing, investigative journalism, consumer-oriented research, public education, and consumer advocacy. Founded ...
'' named Lexus among the top five most reliable brands in its Annual Car Reliability Surveys of over one million vehicles across the U.S.


Service

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. Dealerships typically offer complimentary loaner cars or "courtesy cars" and free car washes, and some have added on-site cafes and designer boutiques. Service bays are lined with large picture windows for owners to watch the servicing of their vehicle. 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. An online owner publication, ''Lexus Magazine'', features automotive and lifestyle articles and is published online monthly and on a mobile site. Since 2002, Lexus has scored consecutive top ratings in the ''Auto Express'' and 76,000-respondent ''Top Gear (magazine), Top Gear'' customer satisfaction surveys in the UK. Lexus has also repeatedly topped the The Luxury Institute, Luxury Institute, New York surveys in the U.S. 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"), and some dealerships have incorporated training at upscale establishments such as Nordstrom department stores and Ritz-Carlton hotels.


Motorsport

Lexus first entered the motorsport arena in 1999 when its racing unit, Team Lexus, fielded two GS 400 race vehicles in the List of motorsport championships#Touring car, Motorola Cup North American Street Stock Championship Touring car racing, touring car series. In its 1999 inaugural season, Team Lexus achieved its first victory with its sixth race at Road Atlanta. Led by Sports Car Club of America and International Motor Sports Association driver Chuck Goldsborough, based in Baltimore, Maryland, 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. Team Lexus won its first IS 300 victory that year at the Virginia International Raceway. In 2002, Team Lexus' competitive efforts in the Grand-Am Cup ST1 (KONI Sports Car Challenge#Vehicles, Street Tuner) class achieved victories in the Drivers' and Team Championships, as well as a sweep of the top three finishes at Circuit Mont-Tremblant in Quebec, Canada. 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 Super GT#GT500, GT500 class. In the first race of the 2006 series, an SC 430 took the chequered flag, and drivers André Lotterer and Juichi Wakisaka raced the SC 430 to capture the GT500 championship for that year. In 2007, another SC 430 won the GT500 opening round race. In 2006, Lexus raced a hybrid vehicle for the first time, entering a GS 450h performance hybrid sedan in partnership with SARD, Sigma Advanced Racing Development at the 24 Hours of Tokachi race in Hokkaido, Japan. Lexus Canada also entered the GS 450h in 2007's Targa Newfoundland event. In 2009, Lexus Super GT Team SC 430 and IS 350 racers won the GT500 and GT300 championships, respectively. Lexus' participation in Endurance racing (motorsport), endurance racing further includes the 24 Hours of Daytona, 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. In 2005, Lexus was runner-up, and in 2006, it won the championship. 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 Technologies, 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. In 2008, Lexus won its third consecutive win at Daytona. For the 2010 Rolex Sports Car Series season, 2010 season, Lexus departed from the Rolex Sports Car Series, and Ganassi Racing switched to
BMW Bayerische Motoren Werke AG, trading as BMW Group (commonly abbreviated to BMW (), sometimes anglicised as Bavarian Motor Works), is a German multinational manufacturer of vehicles and motorcycles headquartered in Munich, Bavaria, Germany. Th ...
/Dinan Cars, Dinan engines. The Lexus LFA#Motorsport, LF-A prototype also competed on the Nürburgring from 2008 to 2011 in VLN endurance races and in the 24 Hours Nürburgring, also with the IS F. On 14 May 2011, a CT 200h tuned up by Gazoo Racing competed in the Adenauer ADAC Rundstrecken-Trophy, a six-hour endurance race. 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 WeatherTech SportsCar Championship, 2017 in the GT Daytona Manufacturer's Championship. They then improved to 5th in 2018 WeatherTech SportsCar Championship, 2018 with the #14 achieving 5th and the #15 getting 10th in the Team's Championship. 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 2019 Sports Car Challenge of Mid-Ohio, Mid-Ohio before winning the next race at 2019 Chevrolet Sports Car Classic, Belle Isle. As of the result of Lime Rock Park, Lexus are second in the 2019 WeatherTech SportsCar Championship, 2019 Manufacturer's Championship and the #12 is third with the #14 in 5th despite that being the winning car.


Marketing

From its inception, Lexus has been advertised to luxury consumers using specific Marketing strategy, 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), and accompanied by vehicles that performed unusual stunts onscreen. The first decade of Lexus commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless", "pursuit", and "perfection", while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera. Examples included the champagne glass "Balance (advertisement), Balance" (1989) and rolling "Ball Bearing (advertisement), Ball Bearing" (1992). In the 2000s (decade), commercials included descriptions of features, or a narration of the events onscreen, and were often targeted at the marque's German competitors. An annual "December to Remember" campaign featured scenes of family members surprising loved ones with the gift of a new Lexus. 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 Intelligent Parking Assist System, self-parking system, and in a 2010 LFA spot showing its engine sound shattering a glass via resonance frequency. 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. A reputation for dependability, bolstered by reliability surveys, also became a primary factor in attracting new customers from rival premium makes. Lexus has since grown to command higher premium pricing, price premiums than rival Japanese makes, with new models further increasing in price and reaching the more than $100,000 ultra-luxury category long dominated by rival European marques. Automotive analysts have also noted Lexus' relative newcomer status as a marketing challenge for the brand, although some have debated the requirement of a long history. European rivals have marketed their decades of heritage and pedigree, whereas Lexus' reputation rests primarily upon its perceived quality and shared history with parent company Toyota. Several analysts have stated that Lexus will have to develop its own heritage over time by highlighting technological innovations and producing substantial products. Lexus' marketing efforts have extended to sporting and charity event sponsorships, including the US Open (tennis), U.S. Open tennis Grand Slam event from 2005 to 2009, and the United States Golf Association's U.S. Open (golf), U.S. Open, U.S. Women's Open, U.S. Senior Open, and U.S. Amateur tournaments since 2007. Lexus has organized an annual Champions for Charity golf series in the U.S. since 1989. Endorsement contracts have also been signed with professional athletes Hideki Matsuyama, Andy Roddick, Annika Sörenstam, and Peter Jacobsen. Since 2008, Lexus has run the video website L Studio. Shows on L Studio include ''Web Therapy (TV series), Web Therapy''. Lexus unveiled its new "Experience Amazing" tagline in the U.S. in a 60-second advertisement at the February 2017 Super Bowl LI. The new tagline replaced Lexus's previous slogans, "Amazing in Motion" and "The Pursuit of Perfection". On 30 March 2018, Lexus premiered a fake partnership with 23andMe, 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 Fools' Day, April Fool's Day joke. Lexus has renewed its sponsorship of the Esports Awards on 23 October 2024. As part of the partnership, Lexus will present awards for "Esports Content Creator of the Year" and "Esports Organization of Year" during the second half of the awards ceremony, which will take place in November 2024. The first half of the awards was presented in July 2024 during the 2024 Esports World Cup, Esports World Cup in Riyadh, Saudi Arabia. Financial terms of this continued partnership were not disclosed.


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

* The Championship by Lexus * Slide (hoverboard)


References


Notes


Bibliography

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External links

* {{Authority control Lexus, 1989 establishments in Japan 1989 establishments in the United States Toyota brands and marques Car manufacturers of Japan Companies based in Aichi Prefecture Japanese brands Luxury motor vehicle manufacturers Vehicle manufacturing companies established in 1989 Car brands