Lexus

Company name	Lexus
Slogan	The Pursuit of Perfection
Company logo
Company type	Division
Foundation	1989
Founder	Eiji Toyoda
Location	Toyota, Aichi, Japan
Area served	Worldwide
Industry	Automotive industry
Products	Automobiles
Services	Automotive financing
Parent	Toyota Motor Corporation ()()
Divisions	F marque
Homepage	Lexus.comLexus.co.ukLexus.euLexus.jp

Lexus is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. Lexus vehicles are officially marketed in over 70 countries and territories worldwide. The Lexus marque has ranked among the ten largest Japanese global brands in market value, and the brand is a major participant in the premium automotive sector. The division's world headquarters are located in Toyota, Aichi, Japan, with major operational centers in Brussels, Belgium, and Torrance, California, United States.

Lexus originated from a clandestine flagship sedan project that began in 1983. This effort developed into the original Lexus LS, which was the first vehicle to wear the Lexus marque upon its launch in 1989. In following years, Lexus added sedan, coupé, convertible, and SUV models. In 2005, a hybrid version of the RX crossover debuted, and additional hybrid models were subsequently introduced to the Lexus lineup. In 2007, Lexus launched its F marque performance division with the debut of the IS F sport sedan, followed by the LFA supercar in 2009.

From the start of production, Lexus vehicles have been consistently 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 built outside the country, the Ontario, Canada-produced RX 330, began in 2003. Following a corporate reorganization from 2001 to 2005, Lexus also operates its own design, engineering, and manufacturing centers, solely responsible for the division's vehicles.

Since the 2000s, Lexus has increased sales outside its largest market in the United States through an ongoing global expansion. The division inaugurated dealerships in Japan's domestic market in 2005, becoming the first Japanese premium car marque to launch in its country of origin. This question prompted Toyota to embark on a top-secret project, code-named F1 (“Flagship One”). The F1 project, whose finished product was ultimately the Lexus LS 400, aimed to develop a flagship sedan that would expand Toyota’s product line, giving it a foothold in the premium segment and offering both longtime and new customers an upmarket product. The F1 project followed the success of the Toyota Supra sports car and the premium Toyota Cressida models. Both the Supra and Cressida were rear-wheel drive cars with a powerful 7M-GE/7M-GTE inline-six engine. The largest sedan Toyota built at the time was the limited-production, 1960s-vintage Toyota Century, its domestic flagship and sole V8-powered model, The Century was conservatively styled for the Japanese market, and along with the Crown not slated for export. In 1986, Honda launched its Acura 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, itself launched in Japan in 1985 as a rival to the Toyota Crown and the Nissan Cedric/Gloria. In 1987, Nissan unveiled its plans for a premium brand, Infiniti, and revised its flagship Nissan President sedan in standard wheelbase form for export as the Infiniti Q45, which it launched in 1990. During this time, Mazda also considered developing an upscale marque, to be called Amati, but its plans did not come to fruition. During that time, several F1 designers rented a home in Laguna Beach, California to observe the lifestyles and tastes of American upper class consumers.

Brand development

In 1986, Toyota’s longtime advertising agency Saatchi & Saatchi formed a specialized unit, Team One, to handle marketing for the new premium brand. 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 primetime drama Dynasty),

The etymology of the Lexus name has been attributed to the combination of the words "luxury" and "elegance," and another theory claims it is an acronym for "luxury exports to the U.S." The injunction threatened to delay the division's launch and marketing efforts. The Lexus logo was developed by Molly Designs and Hunter Communications. The final design for the Lexus logo featured a stylized “L” within an oval, and according to Toyota, was rendered using a precise mathematical formula.

Launch

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

The LS 400 debuted in January 1989 at the North American International Auto Show in Detroit. The LS 400 was sold along with a smaller sibling, the Toyota Camry-based ES 250.

At its launch, the LS 400 was widely praised for its quietness, well-appointed and ergonomic interior, engine performance, build quality, aerodynamics, fuel economy, and value, although it was criticized by some automobile columnists for derivative styling and a suspension regarded as too compromising of handling for ride comfort. and was rated by Car and Driver magazine as better than both the Mercedes-Benz 420 SEL and the BMW 735i in terms of ride, handling, and performance. The LS 400 also won major motoring awards from publications including Automobile Magazine and Wheels Magazine. Despite being an upstart, Lexus established instant customer loyalty and its debut was generally regarded as a major shock to the pedigree luxury marques. BMW's and Mercedes-Benz's U.S. sales figures dropped 29% and 19%, respectively, with BMW executives accusing Lexus of dumping in that market, while 35% of Lexus buyers traded in a Lincoln or Cadillac to make their purchase.

By 1989's end, 16,392 LS 400 and ES 250 sedans had been 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. the vast majority being the LS model. In 1991, Lexus launched its first sports coupe, the SC 400, which shared the LS 400’s V8 engine and rear-wheel drive design. At the conclusion of 1991, Lexus had become the top-selling premium car import in the U.S., with sales reaching a total of 71,206 vehicles. The marque also began increasing U.S. model prices past those of comparable American premium makes, but still below high-end European models;

In 1993, Lexus launched the mid-size GS 300 sports sedan, based on the Toyota Aristo, which had sold for two years prior in Japan. That same year, Lexus also became one of the first marques to debut a certified pre-owned program, with the aim of improving trade-in model values. In 1994, the marque introduced the second generation LS 400, a complete redesign of its flagship model. In May 1995, sales were threatened by the U.S. government's proposal of 100% tariffs on upscale Japanese cars in response to the widening U.S.-Japan trade deficit. 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. The marque's plans for developing an SUV model had accelerated during the U.S.-Japan tariff discussions of 1995. The same year, Lexus made its debut in South America's most populous country when it launched sales in Brazil. In 1999, Lexus recorded its one-millionth vehicle sold in the U.S. market, The GX 470 mid-size SUV debuted in 2002, followed by the second generation RX 330 in 2003. The following year, Lexus recorded its two-millionth U.S. vehicle sale, and debuted the first luxury-branded production hybrid SUV, the RX 400h. This vehicle used a Lexus Hybrid Drive system which combined gasoline and electric motors for increased power, fuel efficiency, and lower emissions relative to gasoline-only equivalents.

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 major world 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 quotas, 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. The IS, GS, and SC models became available in Japan that year, ending domestic sales of Toyota-branded models under the Altezza, Aristo, and Soarer nameplates, respectively. Lexus models sold in Japan featured higher specifications and a price premium (from ¥1-million and up) compared with their discontinued Toyota counterparts. affected by the contraction of the domestic auto market and price increases,

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, 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.

Hybrids and F models

In 2006, Lexus began sales of the GS 450h, a V6 hybrid performance sedan, and launched the fourth generation flagship LS line, comprising both standard- and long-wheelbase V8 (LS 460 and LS 460 L) and hybrid (LS 600h and LS 600h L) versions. The LS 600h L subsequently went on sale as the most expensive sedan ever produced in Japan, with a sticker price of approximately . By the end of 2006, Lexus' annual sales had reached 475,000 vehicles worldwide. accompanied by a supercar concept, the LF-A.

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. Automotive columnists noted Lexus' increased emphasis on sporty models as an effort to bolster the marque's performance credentials and target rivals from Mercedes-Benz's AMG and BMW's M divisions. While previous Lexus models such as the SC 400 and GS 400 had received favorable reactions from sport luxury buyers, other Lexus models had been characterized as favoring comfort over sporty road feel and handling, compared with European rivals. By the end of 2007, Lexus worldwide sales had surpassed 500,000 vehicles for the year, 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.

In 2008, amidst the late-2000s recession and a weakened world car market, global sales fell 16% to 435,000, with declines in markets such as the U.S. and Europe where deliveries fell by 21% and 27.5%, 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,

2010s: Recent developments

In early 2010, Lexus underwent a gradual sales recovery in North America and Asia as the marque focused on adding hybrids and new model derivatives. Sales in the U.S. for the first half of 2010 held steady despite the 2009–2010 Toyota vehicle recalls, several of which included Lexus models. 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, 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. Although the publication knew of no reported incidents, the GX 460 received updated stability control software. In late 2010, the CT 200h went on sale in Europe, with exports to follow in the U.S. and other regions in 2011. By the end of the year, Lexus had expanded sales of lower-displacement regional models, 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. In April 2011, Lexus' U.S. executives indicated that due to vehicle shortages amidst close competition from European rivals, they did not expect to remain as the top-selling premium car brand in the country for that year.||33,365 |- |Europe||17,857 |- |United States||229,329 |- ! style="background:#DCDCDC;" | Type production, 2009 ! style="background:#DCDCDC;" | Units |- |Passenger vehicles||222,684 |- |Crossover SUVs||96,610 |- |Hybrid vehicles|||60,625 |- ! style="background:#DCDCDC;" | Line production, 2009 ! style="background:#DCDCDC;" | Units |- | Japan production||255,012 |- | Canada production|| 64,282 |- | style="text-align:right;" | Total || 319,294 |} As of 2011, coordination of worldwide Lexus division product strategy involves Kazuo Ohara, managing officer, and Andrew Kirby, general manager, at the marque's global Product & Marketing Planning division. Other executives at Lexus' global headquarters, located in Toyota City, Aichi, include Kiyotaka Ise, general manager of the Lexus Development Center, and Nobuyori Kodaira, managing officer of Lexus Japan Sales & Marketing.

In the U.S., Lexus operations are headed by Mark Templin, group vice president and general manager of the U.S. Lexus division, located in Southern California. In Europe, Lexus operations are headed by Andy Pfeiffenberger, vice president of 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.

Regional operations

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, By contrast, in Japan all 143 dealerships in the country are owned and operated by Lexus. Other officially-sanctioned regional distributors have sold Lexus models prior to the launch of, or in absence of, a dedicated dealership network. However, automotive analysts estimate that the Lexus division contributes a disproportionate share of Toyota's profits, relative to its limited production and sales volume. In 2009, Interbrand ranked Lexus as Japan's seventh largest brand, between Panasonic and Nissan, based on revenue, earnings, and market value. 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. Media reports have indicated plans for a GS F sedan and IS F coupe. and the second letter refers to car body style or type (e.g. in LS and SC), while 'X' refers to 'luxury utility vehicle' or SUV. On hybrids, the three digits refer to the combined gasoline-electric output. Since the marque's inception, design targets have ranged from aerodynamics and ride quality to interior ergonomics. The backronym "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 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 Optitron gauges, SmartAccess, a smart key entry and startup system, other models have featured touchscreen controls (through the 2009 model year) as a navigation screen interface. 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 systems are offered via high-end audio purveyor Mark Levinson. In 2006, the LS 460 debuted the first ceiling air diffusers and infrared body temperature sensors in a car. Telematics 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 in an automobile with the LS 460, 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 headlamps.

Safety features on Lexus models range from stability and handling programs (Vehicle Stability Control and Vehicle Dynamics Integrated Management) to backup cameras, swivel headlights, and sonar warning systems. The Lexus Pre-Collision System (PCS) integrates multiple safety systems. 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 flagship uses a dedicated platform, The Nürburgring 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". and the use of both convex and concave surfaces, While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars, Automobile Magazine criticized the daring of its forward styling, and compared subsequent rival models for design similarities. L-finesse exhibitions were presented at Milan's Salone del Mobile from 2005 through 2009.

Production

Many Lexus vehicles are manufactured in Toyota's flagship Tahara plant, a highly sophisticated, computerized manufacturing plant in Japan. Lexus production techniques include methods and standards of quality control that differ from Toyota models. At the Tahara plant, separate assembly lines were developed for Lexus vehicles, along with new molds and specialized manufacturing equipment. Lexus plant workers, typically veteran technicians, are identified via repeated performance evaluations and ranked according to skill grade, with limited applicants accepted. The highest level takumi (Japanese for "artisan") engineers are responsible for maintaining production standards at key points in the assembly process, such as testing engine performance. The Kokura plant in Kitakyūshū, Fukuoka, which opened in 2008, is a dedicated hybrid production site for Lexus models such as the gasoline-electric RX. Front-wheel drive cars, such as the ES and HS, are produced in the Fukuoka Prefecture. In 2006, J.D. Power named the Miyata plant, then the site of ES and IS model production, as its recipient of the Platinum award for worldwide plant quality, and in 2009 the Higashi Fuji plant, site of SC production, received the same recognition. J.D. Power has named Lexus the most reliable brand in the U.S. fourteen times since 1995, according to its Vehicle Dependability Survey of over 53,000 vehicle owners and the first three years of ownership. In the 2000s, Consumer Reports also named Lexus among the top five most reliable brands in its Annual Car Reliability Surveys of over one million vehicles across the U.S.

{| class="wikitable" style="float:left;"' |- ! colspan="4"| Assembly sites by model Dealerships typically offer complimentary loaner cars or "courtesy cars" and free car washes, 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 customer satisfaction surveys in the UK. Lexus has also repeatedly topped the 79,000-respondent J.D. Power Customer Service Index and Luxury Institute, New York surveys in the U.S. As a result of service satisfaction levels, the marque has one of the highest customer loyalty rates in the industry. 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 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. 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.

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, 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 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 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. 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 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 season, Lexus departed from the Rolex Sports Car Series, and Ganassi Racing switched to BMW/Dinan engines. The LF-A prototype also competed on the Nürburgring since 2008 in VLN endurance races and in the 24 Hours Nürburgring, also with the IS F. On May 14, 2011, a Lexus CT 200h tuned up by Gazoo Racing competed in the Adenauer ADAC Rundstrecken-Trophy, a six hour endurance race.

Marketing

, a concept model produced for the film Minority Report|alt=Futuristic two-door concept car displayed in front of a banner labeled 'Minority Report.']] From its inception, Lexus was advertised to luxury consumers using specific marketing strategies, with a consistent motif used for the marque's advertisements. Beginning in 1989, television ads were commonly narrated by film and television actor James Sloyan (who was the voice of "Mr. Lexus" from its launch), The first decade of 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. or a narration of the events onscreen, and are often targeted at the marque's German competitors. Since 2001, an annual "December to Remember" campaign features scenes of family members surprising loved ones with the gift of a new Lexus. In 2009, after twenty years of featuring James Sloyan, Lexus hired actor James Remar for ad voice-overs. Adapted from the original 1989 version, the Lexus slogan is "The Pursuit of Perfection."

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. Lexus has since grown to command higher price premiums than rival Japanese makes, with new models further increasing in price and reaching the over- ultra-luxury category long dominated by rival European marques.

, a full-size glass art model|alt=Translucent glass model in the shape of a coupe.]] 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. Lexus has organized an annual Champions for Charity golf series in the U.S. since 1989. Endorsement contracts have also been signed with pro athletes Andy Roddick, Annika Sörenstam, and Peter Jacobsen.

See also

Balance (advertisement)

Ball Bearing (advertisement)

List of hybrid vehicles

List of Japanese cars

The Championship by Lexus

Toyota Century

References

Notes

Bibliography

External links

Official sites for Australia, Canada, Chile, China, Europe, Japan, Philippines, UK, USA, Singapore

Lexus-reviews.com - independent site reviewing customers experience at local dealerships

* Category:Automotive companies of Japan Category:Car manufacturers of Japan Category:Companies based in Aichi Prefecture Category:Companies established in 1989 Category:Japanese luxury motor vehicle marques Category:Toyota