Lexus
Encyclopedia
is the luxury vehicle division of Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese automaker Toyota Motor Corporation. First introduced in 1989 in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has ranked among the ten largest Japanese global brand
Brand
The American Marketing Association defines a brand as a "Name, term, design, symbol, or any other feature that identifies one seller's good or service as distinct from those of other sellers."...

s in market value. Lexus is headquartered in Toyota City
Toyota, Aichi
is a city located in the Mikawa region of Aichi Prefecture, Japan, east of Nagoya.Toyota's main plant, the Tsutsumi plant, is located here. The longstanding ties between the Toyota Motor Corporation and the town of Toyota-shi, formerly known as Koromo, gave the town its current...

, Japan, with major operational centers in Brussels
Brussels
Brussels , officially the Brussels Region or Brussels-Capital Region , is the capital of Belgium and the de facto capital of the European Union...

, Belgium
Belgium
Belgium , officially the Kingdom of Belgium, is a federal state in Western Europe. It is a founding member of the European Union and hosts the EU's headquarters, and those of several other major international organisations such as NATO.Belgium is also a member of, or affiliated to, many...

, and Torrance, California
Torrance, California
Torrance is a city incorporated in 1921 and located in the South Bay region of Los Angeles County, California, United States. Torrance has of shore-front beaches on the Pacific Ocean, quieter and less well-known by tourists than others on the Santa Monica Bay, such as those of neighboring...

, United States.

Lexus originated from a clandestine flagship sedan project, code-named F1, which began in 1983 and culminated in the launch of the original Lexus LS
Lexus LS
The Lexus LS is a full-size luxury sedan that serves as the flagship model of Lexus, the luxury division of Toyota. Four generations of the sedan have been produced, all equipped with V8 engines and rear-wheel drive, although since 2006 all-wheel drive, hybrid, and long-wheelbase variants have also...

 in 1989. Subsequently, the division added sedan, coupé
Coupé
A coupé or coupe is a closed car body style , the precise definition of which varies from manufacturer to manufacturer, and over time...

, convertible
Convertible
A convertible is a type of automobile in which the roof can retract and fold away having windows which wind-down inside the doors, converting it from an enclosed to an open-air vehicle...

, and SUV
Sport utility vehicle
A sport utility vehicle is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. It is usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not all four-wheel...

 models. In 2005, a hybrid
Hybrid vehicle
A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle. The term most commonly refers to hybrid electric vehicles , which combine an internal combustion engine and one or more electric motors.-Power:...

 version of the RX
Lexus RX
The Lexus RX is a crossover sport utility vehicle sold since 1998 by Lexus, the luxury division of the Japanese automobile manufacturer Toyota. Three generations of the Lexus RX have been produced to date, the first being compact in size, and the latter two classified as mid-size...

 crossover debuted, and additional hybrid models later joined the division's lineup. In 2007, Lexus launched its own F marque performance division with the debut of the IS F sport sedan, followed by the LFA
Lexus LFA
The Lexus LFA is a 2-seat exotic sports coupe produced by Lexus as a concept car, "halo" vehicle, racing prototype, and production model. It is the second model in the F marque line of performance vehicles from Lexus, following the IS F...

 supercar in 2009.

From the start of production, Lexus vehicles have been produced in Japan, with manufacturing centered in the Chūbu
Chubu region
The is the central region of Honshū, Japan's main island. Chūbu has a population estimate of 21,886,324 as of 2008.Chūbu, which means "central region", encompasses nine prefectures : Aichi, Fukui, Gifu, Ishikawa, Nagano, Niigata, Shizuoka, Toyama, Yamanashi, and often Mie.It is located directly...

 and Kyūshū
Kyushu
is the third largest island of Japan and most southwesterly of its four main islands. Its alternate ancient names include , , and . The historical regional name is referred to Kyushu and its surrounding islands....

 regions, and in particular at Toyota's Tahara
Tahara plant
Tahara plant is an automobile plant in Tahara, Aichi, Japan owned by Toyota Motor Corporation. It is a highly computerized and robotized plant and produces the Lexus brand of vehicles including the Lexus LS, Lexus LS Hybrid, Lexus GS, Lexus IS, Lexus GX, and Lexus LX models. Several Toyota...

, Aichi
Aichi Prefecture
is a prefecture of Japan located in the Chūbu region. The region of Aichi is also known as the Tōkai region. The capital is Nagoya. It is the focus of the Chūkyō Metropolitan Area.- History :...

, Chūbu and Miyata
Miyata, Fukuoka
Miyata was a town located in Kurate District, Fukuoka Prefecture, Japan.As of 2003, the town had an estimated population of 20,984 and a density of 399.77 persons per km². The total area was 52.49 km²....

, Fukuoka
Fukuoka Prefecture
is a prefecture of Japan located on Kyūshū Island. The capital is the city of Fukuoka.- History :Fukuoka Prefecture includes the former provinces of Chikugo, Chikuzen, and Buzen....

, Kyūshū plants. Assembly of the first Lexus built outside the country, the Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

-produced RX 330, began in 2003. Following a corporate reorganization from 2001 to 2005, Lexus also operates its own design
Automotive design
Automotive design is the profession involved in the development of the appearance, and to some extent the ergonomics, of motor vehicles or more specifically road vehicles. This most commonly refers to automobiles but also refers to motorcycles, trucks, buses, coaches, and vans...

, engineering
Automotive engineering
Modern automotive engineering, along with aerospace engineering and marine engineering, is a branch of vehicle engineering, incorporating elements of mechanical, electrical, electronic, software and safety engineering as applied to the design, manufacture and operation of motorcycles, automobiles,...

, 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 dealership
Car dealership
A car dealership or vehicle local distribution is a business that sells new or used cars at the retail level, based on a dealership contract with an automaker or its sales subsidiary. It employs automobile salespeople to do the selling...

s in Japan's domestic market in 2005, becoming the first Japanese premium car marque to launch in its country of origin
Country of origin
Country of origin , is the country of manufacture, production, or growth where an article or product comes from...

. Further debuts in Southeast Asia
Southeast Asia
Southeast Asia, South-East Asia, South East Asia or Southeastern Asia is a subregion of Asia, consisting of the countries that are geographically south of China, east of India, west of New Guinea and north of Australia. The region lies on the intersection of geological plates, with heavy seismic...

, Latin America
Latin America
Latin America is a region of the Americas where Romance languages  – particularly Spanish and Portuguese, and variably French – are primarily spoken. Latin America has an area of approximately 21,069,500 km² , almost 3.9% of the Earth's surface or 14.1% of its land surface area...

, and other export
Export
The term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...

 regions have since followed. The division's lineup has also been expanded to reflect regional specifications in model and powertrain
Powertrain
In a motor vehicle, the term powertrain or powerplant refers to the group of components that generate power and deliver it to the road surface, water, or air. This includes the engine, transmission, drive shafts, differentials, and the final drive...

 configurations.

1980s: The F1 project

In 1983, Toyota chairman Eiji Toyoda
Eiji Toyoda
is a prominent Japanese industrialist, who was largely responsible for bringing Toyota Motor Corporation to profitability and worldwide prominence during his tenure as president and later chairman.-Career:...

 summoned a secret meeting of company executives, to whom he posed the question, “Can we create a luxury vehicle to challenge the world's best?” This question prompted Toyota to embark on a top-secret project, code-named F1 (“Flagship One”). The F1 project, whose finished product was ultimately the Lexus LS 400
Lexus LS
The Lexus LS is a full-size luxury sedan that serves as the flagship model of Lexus, the luxury division of Toyota. Four generations of the sedan have been produced, all equipped with V8 engines and rear-wheel drive, although since 2006 all-wheel drive, hybrid, and long-wheelbase variants have also...

, 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
Toyota Supra
The Toyota Supra is a sports car/grand tourer that was produced by Toyota Motor Company from 1979 to 2002. The styling of the Toyota Supra was derived from the Toyota Celica, but it was both longer and wider. Starting in mid-1986, the Supra became its own model and was no longer based on the Celica...

 sports car and the premium Toyota Cressida
Toyota Cressida
The Toyota Cressida was a mid-size sedan marketed by Toyota from December 1976 to February 1993 through four generations. It was the flagship sedan of Toyota in the United States. The same chassis with slightly different bodies was available in other countries as the Toyota Mark II, Toyota Chaser...

 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
Toyota Century
The Toyota Century is a large four-door limousine produced mainly for the Japanese market, serving as Toyota's flagship car. Production of the Century began in 1967 and the model received only minor changes until a redesign in 1997. The Century derived its name from the 100th anniversary of the...

, its domestic flagship and sole V8-powered model, followed by the inline-six-engined Toyota Crown
Toyota Crown
The Toyota Crown is a line of full-size luxury sedans by Toyota. The range was primarily available in Japan and some other Asian countries, originally designed to serve as a taxi...

 premium sedan. The Century was conservatively styled for the Japanese market, and along with the Crown not slated for export. F1 designers targeted their new sedan at international markets and began development on a new V8 engine.

The opportunity for Japanese manufacturers to export more expensive models had grown in the 1980s due to voluntary export restraints
Voluntary Export Restraints
A voluntary export restraint or voluntary export restriction is a government imposed limit on the quantity of goods that can be exported out of a country during a specified period of time....

, negotiated by the Japanese government and U.S. trade representatives, restricting mainstream car sales. In 1986, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

 launched its Acura
Acura
Acura is the luxury vehicle division of Japanese automaker Honda Motor Company. The brand has been available in the United States and Canada since March 1986, marketing luxury, performance, and near-performance vehicles. It was introduced to Hong Kong in 1991, Mexico in 2004, and China in 2006...

 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
Honda Legend
The Honda Legend is a mid-size luxury car made by the Japanese automaker Honda. It was the result of Project XX, a joint agreement started in November 1981 with the Austin Rover Group of Great Britain and was mechanically related to the Rover 800 series....

, itself launched in Japan in 1985 as a rival to the Toyota Crown and the Nissan Cedric
Nissan Cedric
The Nissan Cedric is a large automobile produced by Nissan since 1960. It was developed to provide upscale transportation, competing with the Prince Skyline and Gloria which were later merged into the Nissan family...

/Gloria
Nissan Gloria
The Gloria is a large luxury car made from 1959 by the Prince Motor Company, and later by Nissan Motors since its merger with the former - hence being originally marketed as Prince Gloria and later as Nissan Gloria...

. In 1987, Nissan unveiled its plans for a premium brand, Infiniti
Infiniti
is the luxury division of automaker Nissan. Infiniti officially started selling vehicles on November 8, 1989 in North America. Marketing operations have since grown to include the Middle East, South Korea, Russia, Taiwan, China, Ukraine and the United Kingdom. Infiniti began sales in additional...

, and revised its flagship Nissan President
Nissan President
The Nissan President was a Japanese luxury limousine produced by Nissan from 1965 to 2010. The car was mainly used by corporate executives and government officers. It was a luxury sedan specifically aimed to the Japanese market, where its main competitor was the Toyota Century.The President was...

 sedan in standard wheelbase form for export as the Infiniti Q45
Infiniti Q45
The Infiniti Q45 was a full-size luxury car sold by Nissan's Infiniti marque from 1990 until 2006. It is a rear wheel drive, four-door sedan powered by a V8 engine. Early generations were based on the automaker's Japanese-market flagship sedan, the Nissan President, while models produced after 1997...

, which it launched in 1990. During this time, Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

 also considered developing an upscale marque, to be called Amati, but its plans did not come to fruition.

Toyota researchers visited the U.S. in May 1985 to conduct focus group
Focus group
A focus group is a form of qualitative research in which a group of people are asked about their perceptions, opinions, beliefs and attitudes towards a product, service, concept, advertisement, idea, or packaging...

s and market research
Market research
Market research is any organized effort to gather information about markets or customers. It is a very important component of business strategy...

 on luxury consumers. During that time, several F1 designers rented a home in Laguna Beach, California
Laguna Beach, California
Laguna Beach is a seaside resort city and artist community located in southern Orange County, California, United States, approximately southwest of the county seat of Santa Ana...

 to observe the lifestyles and tastes of American upper class
American upper class
See: millionaire for more details-Millionaires:See also: MillionairesHouseholds with net worths of $1 million or more may be identified as members of the upper-most socio-economic demographic, depending on the class model used...

 consumers. Meanwhile, F1 engineering teams conducted prototype testing on locations ranging from the German autobahn to U.S. roads. Toyota’s market research concluded that a separate brand and sales channel were needed to present its new flagship 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 & Saatchi
Saatchi & Saatchi is a global advertising agency network with 140 offices in 80 countries and over 6,500 staff. It was founded in London in 1970 but now headquartered in New York. The parent company of the agency group was known as Saatchi & Saatchi PLC from 1976 to 1994, was listed on the London...

 formed a specialized unit, Team One, to handle marketing for the new premium brand. Image consulting firm Lippincott & Margulies was hired to develop a list of 219 prospective names; Vectre, Verone, Chaparel, Calibre and Alexis were chosen as top candidates. While Alexis quickly became the front runner, 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
Dynasty (TV series)
Dynasty is an American prime time television soap opera that aired on ABC from January 12, 1981 to May 11, 1989. It was created by Richard & Esther Shapiro and produced by Aaron Spelling, and revolved around the Carringtons, a wealthy oil family living in Denver, Colorado...

), and as a result the first letter was removed and the "i" replaced with a "u" to morph the name to Lexus.

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." According to Team One interviews, the brand name has no specific meaning and simply denotes a luxurious and technological image. Just prior to the release of the first vehicles, database service LexisNexis
LexisNexis
LexisNexis Group is a company providing computer-assisted legal research services. In 2006 it had the world's largest electronic database for legal and public-records related information...

 obtained a temporary injunction
Injunction
An injunction is an equitable remedy in the form of a court order that requires a party to do or refrain from doing certain acts. A party that fails to comply with an injunction faces criminal or civil penalties and may have to pay damages or accept sanctions...

 forbidding the name Lexus from being used as they stated it might cause confusion. The injunction threatened to delay the division's launch and marketing efforts. Upon reflection, a 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." The Lexus logo was developed by Molly Designs and Hunter Communications. The final design for the Lexus logo featured a stylized “L” within an oval, and according to Toyota, was rendered using a precise mathematical formula. The first teaser ads featuring the Lexus name and logo, designed by Team One, appeared at the Chicago, Los Angeles, and New York auto shows in 1988.

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
V8 engine
A V8 engine is a V engine with eight cylinders mounted on the crankcase in two banks of four cylinders, in most cases set at a right angle to each other but sometimes at a narrower angle, with all eight pistons driving a common crankshaft....

 gasoline engine
Four-stroke cycle
A four-stroke engine, also known as four-cycle, is an internal combustion engine in which the piston completes four separate strokes—intake, compression, power, and exhaust—during two separate revolutions of the engine's crankshaft, and one single thermodynamic cycle.There are two...

 and rear-wheel drive. The LS 400 debuted in January 1989 at the North American International Auto Show
North American International Auto Show
The North American International Auto Show is an annual auto show held in Detroit, Michigan at Cobo Center, usually in January. It is among the largest auto shows in North America.-History:...

 in Detroit, and officially went on sale the following September at a network of 81 new Lexus dealerships across the U.S. The LS 400 was sold along with a smaller sibling, the Toyota Camry-based ES 250
Lexus ES
The Lexus ES series is a family of mid-size luxury sedans sold by Lexus since 1989. Now in its fifth generation, the series has been consistently built on the Toyota Camry platform with a V6 engine, automatic transmission, and front-wheel drive...

. The launch of Lexus was heralded by a multimillion dollar advertising campaign in both television and print media.

At its debut, the LS 400 was widely praised for its quietness, well-appointed and ergonomic interior, engine performance, build quality, aerodynamics
Aerodynamics
Aerodynamics is a branch of dynamics concerned with studying the motion of air, particularly when it interacts with a moving object. Aerodynamics is a subfield of fluid dynamics and gas dynamics, with much theory shared between them. Aerodynamics is often used synonymously with gas dynamics, with...

, fuel economy
Fuel economy in automobiles
Fuel usage in automobiles refers to the fuel efficiency relationship between distance traveled by an automobile and the amount of fuel consumed....

, and value, although it was criticized by some automobile columnists for derivative styling and a suspension
Suspension (vehicle)
Suspension is the term given to the system of springs, shock absorbers and linkages that connects a vehicle to its wheels. Suspension systems serve a dual purpose — contributing to the car's roadholding/handling and braking for good active safety and driving pleasure, and keeping vehicle occupants...

 regarded as too compromising of handling for ride comfort. The LS 400 debuted at in the U.S. (in some markets, it was priced against mid-size six-cylinder Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...

 and BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...

 models) and was rated by Car and Driver
Car and Driver
Car and Driver is an American automotive enthusiast magazine. Its total circulation is 1.31 million. It is owned by Hearst Magazines, who purchased prior owner Hachette Filipacchi Media U.S. in 2011...

 magazine as better than both the Mercedes-Benz 420 SEL
Mercedes-Benz W126
The Mercedes-Benz W126 is a series of flagship vehicles manufactured by German automotive marque Mercedes-Benz. Premiering in September 1979 as the successor to the earlier W116 line, the W126 was the second generation of the Mercedes-Benz flagship to officially bear the S-Class name referring to...

 and the BMW 735i
BMW E32
After almost 7 years in development since September 1979, in July 1986, BMW introduced the second generation of the 7 series, known internally as the E32. Aimed at the high end of the luxury market, the car offered some of the latest innovations in automotive technology, and a new, top-of-the-line...

 in terms of ride, handling, and performance. The LS 400 also won major motoring awards from publications including Automobile Magazine
Automobile Magazine
Automobile magazine is an automobile magazine in the United States and is owned by Source Interlink. It was founded by a group of former employees of Car and Driver magazine, led by that publications’s former editor, David E. Davis, and originally published by News Corporation...

 and Wheels Magazine
Wheels magazine
Wheels is an Australian automotive magazine published monthly by ACP Magazines. The publication is well-renowned by Australian car enthusiasts...

. 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
Dumping (pricing policy)
In economics, "dumping" is any kind of predatory pricing, especially in the context of international trade. It occurs when manufacturers export a product to another country at a price either below the price charged in its home market, or in quantities that cannot be explained through normal market...

 in that market, while 35% of Lexus buyers traded in a Lincoln or Cadillac to make their purchase.
In December 1989, Lexus initiated a voluntary recall of all 8,000 LS 400s sold to date, based upon two customer complaints over defective wiring and an overheated brake light. In a sweeping 20-day operation which replaced the parts on all affected vehicles, Lexus sent technicians to pick up, repair, and return cars to customers free of charge, and also flew in personnel and rented garage space for owners in remote locations. This response was lauded in media publications and helped establish the marque's early reputation for customer service
Customer service
Customer service is the provision of service to customers before, during and after a purchase.According to Turban et al. , “Customer service is a series of activities designed to enhance the level of customer satisfaction – that is, the feeling that a product or service has met the customer...

.

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.

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 vast 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
Lexus SC
The Lexus SC is a personal luxury coupé that was retailed by Lexus, and built from 1991 through 2010. It features a front engine, rear-wheel drive design and seating for up to four passengers. The first generation SC debuted as the V8-powered SC 400 in 1991, and the I6-powered SC 300 was added in...

, which shared the LS 400’s 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 a total of 71,206 vehicles. That year, Lexus ranked highest in J.D. Power and Associates
J.D. Power and Associates
J.D. Power and Associates is a global marketing information services firm founded in 1968 by James David Power III. The firm conducts surveys of customer satisfaction, product quality, and buyer behavior for industries ranging from cars to marketing and advertising firms. The firm is best known for...

' 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% to nearly .

In 1993, Lexus launched the mid-size GS 300
Lexus GS
The Lexus GS is a series of mid-size luxury sports sedans / executive cars sold by Lexus since 1993. Designed to fill the gap between the ES and LS, and to provide Lexus with a performance sedan to compete in the mid-luxury class, three generations of the GS have been produced to date...

 sports sedan, based on the Toyota Aristo, 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 also became one of the first marques to debut a certified pre-owned
Certified Pre-Owned
A Certified Pre-Owned or CPO, car is a type of used car.Most often late-model, they differ from run of the mill used cars by having been inspected, refurbished, and certified by a manufacturer or other certifying authority. They also typically include an extended warranty, special financing, and...

 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% tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....

s 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.
In 1996, Lexus debuted its first sport utility vehicle, the LX 450
Lexus LX
The Lexus LX is a full-size sport utility vehicle sold by Lexus since 1996. Three generations of the Lexus LX have been produced, all based heavily on the long-running Toyota Land Cruiser series of SUVs. The first generation LX 450 debuted in 1996 as Lexus' first entry into the SUV market. Its...

. The marque's plans for developing an SUV model had accelerated during the U.S.-Japan tariff discussions of 1995. In 1998, Lexus added the first luxury-branded crossover SUV
Crossover SUV
A crossover SUV is a vehicle built on a car platform and combining, in highly variable degrees, features of a sport utility vehicle with features from a passenger vehicle, especially those of a station wagon or hatchback.Using the unibody construction typical of passenger vehicles, the crossover...

, the RX 300
Lexus RX
The Lexus RX is a crossover sport utility vehicle sold since 1998 by Lexus, the luxury division of the Japanese automobile manufacturer Toyota. Three generations of the Lexus RX have been produced to date, the first being compact in size, and the latter two classified as mid-size...

, and the second generation GS 300 and GS 400 sedans. The RX crossover targeted suburban buyers who desired an upmarket SUV but did not need the LX's off-road capability; it was particularly successful, becoming the marque's top-selling model ahead of the ES 300. 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, and was ranked as the top-selling premium car make in the U.S. overall.

2000s: Global reorganization

In 2000, Lexus introduced the IS
Lexus IS
The Lexus IS is a series of entry-level luxury cars / compact executive cars sold by Lexus since 1998. The IS was introduced as an entry-level sport model slotted below the ES in the Lexus lineup...

 line, a new series of entry-level sport sedans. In 2001, the marque debuted its first convertible, the SC 430, and the third generation LS 430. 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
Hybrid Synergy Drive
Hybrid Synergy Drive is a set of hybrid car technologies developed by Toyota and used in the company's Auris, Prius, Highlander Hybrid, Camry Hybrid, Estima, Alphard, Lexus CT, Lexus RX 400h/RX 450h, Lexus GS 450h, Lexus LS 600h/LS 600hL, and Lexus HS 250h automobiles. Toyota also licenses its HSD...

 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 quota
Import quota
An import quota is a type of protectionist 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....

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. 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 ¥
¥
¥ is a currency sign used by the Japanese yen and the Chinese yuan currencies. The symbol resembles a Latin letter Y with a double stroke. The base unit of both currencies shared the same Chinese character pronounced yuán in Mandarin Chinese and en in Standard Japanese...

1-million and up) 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.

Hybrids and F models

In 2006, Lexus began sales of the GS 450h, a V6
V6 engine
A V6 engine is a V engine with six cylinders mounted on the crankcase in two banks of three cylinders, usually set at either a right angle or an acute angle to each other, with all six pistons driving a common crankshaft...

 hybrid performance sedan, and launched the fourth generation flagship LS line, comprising both standard- and long-wheelbase
Wheelbase
In both road and rail vehicles, the wheelbase is the distance between the centers of the front and rear wheels.- Road :In automobiles, the wheelbase is the horizontal distance between the center of the front wheel and the center of the rear wheel...

 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. In January 2007, Lexus announced a new F marque performance division, which would produce racing-inspired versions of its performance models. The first of this line, the IS F, made its debut at the 2007 North American International Auto Show, accompanied by a supercar
Supercar
Supercar is a term used most often to describe an expensive high end car. It has been defined specifically as "a very expensive, fast or powerful car"...

 concept, the LF-A
Lexus LF
The Lexus LF line is a series of concept cars built by Lexus, the luxury vehicle division of Toyota Motor Corporation. The "LF" designation refers to Lexus Future. The LF Series vehicles include three coupes/convertibles: the LF-A, the LF-A Roadster, and the LF-C; three sedans: the LF-S, LF-Sh, and...

.

In October 2007, Lexus entered the Specialty Equipment Market Association
SEMA
Specialty Equipment Market Association of the automobile aftermarket was formed in 1963 by Roy Richter, Ed Iskenderian, Willie Garner, Bob Hedman, John Bartlett, Phil Weiand, Jr., Al Segal, Dean Moon, and Vic Edelbrock, Jr...

 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
Mercedes-AMG
Mercedes-AMG GmbH, commonly known as AMG, is a subsidiary of the Mercedes-Benz car company specializing in high-performance luxury cars....

 and BMW's M
BMW M
BMW M GmbH is a subsidiary of German car manufacturer BMW AG.BMW M, also known as M-Technik or just "M" was initially created to facilitate BMW’s racing program, which was very successful in the 1960s and 1970s...

 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 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.

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
Lexus HS
The Lexus HS is a dedicated hybrid vehicle introduced by Lexus as a new entry-level luxury compact sedan in 2009. It is classified as a compact under Japanese regulations concerning vehicle exterior dimensions and engine displacement...

, a dedicated hybrid sedan for North America and Japan, the RX 450h
Lexus RX (AL10)
The Lexus RX is the third generation of the Lexus RX series of crossover SUVs, sold by Lexus since 2009. The vehicle series is a complete redesign of Lexus' crossover model line, with models debuting in 2009 including the RX 350 and RX 450h...

, the second generation hybrid SUV replacing the earlier RX 400h, and later that year debuted the production LFA
Lexus LFA
The Lexus LFA is a 2-seat exotic sports coupe produced by Lexus as a concept car, "halo" vehicle, racing prototype, and production model. It is the second model in the F marque line of performance vehicles from Lexus, following the IS F...

 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 ten consecutive years.

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
2009–2010 Toyota vehicle recalls
Three separate but related recalls of automobiles by Toyota Motor Corporation occurred at the end of 2009 and start of 2010. Toyota initiated the recalls, the first two with the assistance of the U.S. National Highway Traffic Safety Administration , after reports that several vehicles experienced...

, 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
Patch (computing)
A patch is a piece of software designed to fix problems with, or update a computer program or its supporting data. This includes fixing security vulnerabilities and other bugs, and improving the usability or performance...

, one week after Consumer Reports
Consumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...

 issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow stability control
Electronic stability control
Electronic stability control is a computerized technology that may potentially improve the safety of a vehicle's stability by detecting and minimizing skids. When ESC detects loss of steering control, it automatically applies the brakes to help "steer" the vehicle where the driver intends to go...

 response to a high-speed emergency turn. Although the publication knew of no reported incidents, the GX 460 received updated stability control software.

At the Geneva Motor Show in March 2010, Lexus introduced the CT 200h
Lexus CT
The Lexus CT 200h is a hybrid electric automobile introduced by Lexus and is an entry-level luxury hatchback. It made its debut at the March 2010 Geneva Auto Show, six months after the unveiling of the LF-Ch concept car; it is primarily targeted at the European market but will be sold worldwide and...

, a compact four-door hybrid hatchback
Hatchback
A Hatchback is a car body style incorporating a shared passenger and cargo volume, with rearmost accessibility via a rear third or fifth door, typically a top-hinged liftgate—and features such as fold-down rear seats to enable flexibility within the shared passenger/cargo volume. As a two-box...

 initially designed for the European market. 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
2011 Tōhoku earthquake and tsunami
The 2011 earthquake off the Pacific coast of Tohoku, also known as the 2011 Tohoku earthquake, or the Great East Japan Earthquake, was a magnitude 9.0 undersea megathrust earthquake off the coast of Japan that occurred at 14:46 JST on Friday, 11 March 2011, with the epicenter approximately east...

 caused severe disruption to Lexus' Japan-based production lines. The resulting reduction in vehicle shipments to key export regions such as the U.S. hindered the marque's near-term sales prospects. 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.

Management

Total sales and production
Regional sales, 2010 Units
Japan 33,365
Europe 17,857
United States 229,329
Type production, 2010 Units
Passenger vehicles 205,070
Crossover SUVs 159,560
Hybrid vehicle
Hybrid vehicle
A hybrid vehicle is a vehicle that uses two or more distinct power sources to move the vehicle. The term most commonly refers to hybrid electric vehicles , which combine an internal combustion engine and one or more electric motors.-Power:...

s
66,226
Line production, 2010 Units
Japan production 283,012
Canada production 81,618
Total 364,630

Through 2011, coordination of worldwide Lexus division product strategy involves Kazuo Ohara, managing officer, and Karl Schlicht, 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
Southern California
Southern California is a megaregion, or megapolitan area, in the southern area of the U.S. state of California. Large urban areas include Greater Los Angeles and Greater San Diego. The urban area stretches along the coast from Ventura through the Southland and Inland Empire to San Diego...

. 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, with separately owned and operated Lexus showroom
Showroom
The word showroom has two distinct meanings including:-Marketing location:A showroom is a large space used to display products for sale, such as automobiles, furniture, appliances, carpet or apparel. The World's most famous locations for a showroom are the Champs Elysees in Paris or the 5th Avenue...

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
Distribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...

; 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.

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 cycles, and exchange rate
Exchange rate
In finance, an exchange rate between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency...

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
Profit margin, net margin, net profit margin or net profit ratio all refer to a measure of profitability. It is calculated by finding the net profit as a percentage of the revenue.Net profit Margin = x100...

s rather than sales volume, with historically fewer price incentive
Incentive
In economics and sociology, an incentive is any factor that enables or motivates a particular course of action, or counts as a reason for preferring one choice to the alternatives. It is an expectation that encourages people to behave in a certain way...

s than rival brands. In 2006, Lexus entered Interbrand
Interbrand
Interbrand, a division of Omnicom, is a global branding consultancy, specializing in vast brand services, including brand analytics, brand strategy, brand valuation, corporate design, digital brand management, and naming...

's list of the Top 100 Global Brands
BrandZ
BrandZ is a brand equity database. It holds data from over 650,000 consumers and professionals across 31 countries, comparing over 23,000 brands...

 for the first time, with an estimated brand value of approximately annually. In 2009, Interbrand ranked Lexus as Japan's seventh largest brand, between Panasonic
Panasonic
Panasonic is an international brand name for Japanese electric products manufacturer Panasonic Corporation, which was formerly known as Matsushita Electric Industrial Co., Ltd...

 and Nissan, based on revenue, earnings, and market value.

Vehicle lineup

The Lexus lineup includes five sedans, namely the compact
Compact executive car
Compact executive car is a car classification term applied to premium cars smaller than executive cars. In European classification, compact executive cars are part of the D-segment. In North American terms, close equivalents are compact premium car, compact luxury car, entry-level luxury car and...

 IS and HS models, mid-size
Mid-size car
A mid-size car is the North American/Australian standard for an automobile with a size equal to or greater than that of a compact...

 ES and GS models, and the full-size
Full-size car
A full-size car is a marketing term used in North America for an automobile larger than a mid-size car. In the United States, the EPA uses "large car" to denote full-size cars....

 LS flagship, along with two convertibles, the IS C and SC. Three SUVs are produced, increasing in size from the crossover RX, the mid-size GX, to the full-size LX. Hybrid models include the CT hatchback, HS sedan, and variants of the GS, LS, and RX. The F marque line produces a variant of the IS sedan and the LFA coupe.

F marque

Lexus produces its highest-performance models under its F marque division. The name refers to Flagship and Fuji Speedway
Fuji Speedway
is a race track standing in the foothills of Mount Fuji, in Oyama, Suntō District, Shizuoka Prefecture, Japan. It was built in the early 1960s and hosted the first Formula One race in Japan in 1976. In the 1980s, Fuji Speedway was used for the FIA World Sportscar Championship and national racing...

 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. F-Sport succeeded an earlier in-house tuning effort, the TRD
Toyota Racing Development
Toyota Racing Development or TRD is the in-house tuning shop for all Toyota, Lexus, and Scion cars. TRD is responsible both for improving street cars for more performance and supporting Toyota's racing interests around the world. TRD produces various tuning products and accessories, including...

-based L-Tuned, which had offered performance packages on the IS and GS sedans in the early 2000s.

Model nomenclature

Lexus production models are named alphanumeric
Alphanumeric
Alphanumeric is a combination of alphabetic and numeric characters, and is used to describe the collection of Latin letters and Arabic digits or a text constructed from this collection. There are either 36 or 62 alphanumeric characters. The alphanumeric character set consists of the numbers 0 to...

ally using two-letter designations followed by three digits. The first letter indicates relative status in the Lexus model range (ranking
Ranking
A ranking is a relationship between a set of items such that, for any two items, the first is either 'ranked higher than', 'ranked lower than' or 'ranked equal to' the second....

), and the second letter refers to car body style
Car body style
Automobiles' body styles are highly variable. Some body styles remain in production, while others become less common or obsolete. They may or may not correlate to a car's price, size or intended market classification. The same car model might be available in multiple body styles comprising a...

 or type (e.g. LS for 'luxury sedan'). The three digits indicate engine displacement
Engine displacement
Engine displacement is the volume swept by all the pistons inside the cylinders of an internal combustion engine in a single movement from top dead centre to bottom dead centre . It is commonly specified in cubic centimeters , litres , or cubic inches...

 in liters multiplied by a factor of one hundred (e.g. 350 for a 3.5 L engine). 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
Sport utility vehicle
A sport utility vehicle is a generic marketing term for a vehicle similar to a station wagon, but built on a light-truck chassis. It is usually equipped with four-wheel drive for on- or off-road ability, and with some pretension or ability to be used as an off-road vehicle. Not all four-wheel...

' or SUV. On hybrids, the three digits refer to the combined gasoline-electric output. For certain models, a lower case letter placed after the alphanumeric designation indicates powerplant type ('h' for hybrid, 'd' for diesel), while capital letter(s) placed at the end indicates a class subtype (e.g. 'L' for long-wheelbase, 'C' for coupe, 'AWD' for all-wheel drive). On F marque models, the two-letter designation and the letter 'F' are used with no numbers or hyphens (e.g. IS F).

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
Ride quality refers to the degree of protection offered vehicle occupants from uneven elements in the road surface, or the terrain if driving off-road. A car with very good ride quality is also a comfortable car to ride in. Cars which disturb vehicle occupants with major or minor road...

 to interior ergonomics. The backronym
Backronym
A backronym or bacronym is a phrase constructed purposely, such that an acronym can be formed to a specific desired word. Backronyms may be invented with serious or humorous intent, or may be a type of false or folk etymology....

 "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
Leather is a durable and flexible material created via the tanning of putrescible animal rawhide and skin, primarily cattlehide. It can be produced through different manufacturing processes, ranging from cottage industry to heavy industry.-Forms:...

 seat stitching. Design elements from the marque's concept vehicle line, the LF series
Lexus LF
The Lexus LF line is a series of concept cars built by Lexus, the luxury vehicle division of Toyota Motor Corporation. The "LF" designation refers to Lexus Future. The LF Series vehicles include three coupes/convertibles: the LF-A, the LF-A Roadster, and the LF-C; three sedans: the LF-S, LF-Sh, and...

 (including the 2003 LF-S and 2004 LF-C), have been incorporated in production models.

Vehicle cabins have incorporated electroluminescent
Electroluminescence
Electroluminescence is an optical phenomenon and electrical phenomenon in which a material emits light in response to the passage of an electric current or to a strong electric field...

 Optitron gauges, SmartAccess, a smart key
Advanced Key
Smart key is an electronic access and authorization system which is available as an option or standard in several cars. It was first used by Mercedes-Benz in 1998.-How it works:...

 entry and startup system, and multimedia features. Beginning with the 2010 RX and HS models, the Remote Touch
Remote Touch
Remote Touch is a vehicle interface system developed by Lexus for use in conjunction with in-car information, configuration, and entertainment systems. The Remote Touch controller, which is similar to a computer mouse or joystick, allows the driver to operate an on-screen cursor on the vehicle's...

 system, featuring a computer mouse-like controller with haptic feedback, was introduced; other models have featured touchscreen
Touchscreen
A touchscreen is an electronic visual display that can detect the presence and location of a touch within the display area. The term generally refers to touching the display of the device with a finger or hand. Touchscreens can also sense other passive objects, such as a stylus...

 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
Nakamichi
is an historic Japanese high end audio company most famous for its innovative and very high quality audio cassette decks.In 1972, Nakamichi launched its first Nakamichi-brand products, home audio gear that included the world's first three-head cassette deck...

. Since 2001, optional surround sound
Surround sound
Surround sound encompasses a range of techniques such as for enriching the sound reproduction quality of an audio source with audio channels reproduced via additional, discrete speakers. Surround sound is characterized by a listener location or sweet spot where the audio effects work best, and...

 systems are offered via high-end audio
High-end audio
High-end audio is a term used to describe a class of consumer home audio equipment marketed to audio enthusiasts on the basis of high price or quality, and esoteric or novel sound reproduction technologies. High-end audio can refer simply to the price, to the build quality of the components, or to...

 purveyor Mark Levinson
Mark Levinson
The company Mark Levinson, now owned by Madrigal Audio Laboratories specializes in high-end digital audio processors, integrated amplifiers, power amplifiers, pre amplifiers, and CD players...

. For reduced cabin noise, the first LS 400 introduced sandwich steel
Steel
Steel is an alloy that consists mostly of iron and has a carbon content between 0.2% and 2.1% by weight, depending on the grade. Carbon is the most common alloying material for iron, but various other alloying elements are used, such as manganese, chromium, vanadium, and tungsten...

 plating, and later models added acoustic glass. In 2006, the LS 460 debuted the first ceiling air diffusers and infrared
Infrared
Infrared light is electromagnetic radiation with a wavelength longer than that of visible light, measured from the nominal edge of visible red light at 0.74 micrometres , and extending conventionally to 300 µm...

 body temperature sensors in a car. Telematics
Telematics
Telematics typically is any integrated use of telecommunications and informatics, also known as ICT...

 services include G-Book
G-Book
G-Book is a telematics subscription service currently provided by Toyota Motor Corporation in Japan for its Toyota- and Lexus-branded vehicles. G-Book allows users to link with cellphones , personal digital assistants 's, personal computers and G-Book equipped cars across Japan...

 with G-Link in Asia and Lexus Enform
Safety Connect
Safety Connect is a subscription-based telematics system introduced by Toyota Motor Corporation in 2009 for its Toyota-branded and Lexus models. The system provides communications, roadside assistance, car safety, remote diagnostics, and other services...

 in North America.

In 2006, Lexus incorporated the first production eight-speed automatic transmission
Automatic transmission
An automatic transmission is one type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually...

 in an automobile with the LS 460, and the gearbox was later adapted for the GS 460 and IS F models. Continuously variable transmission
Continuously variable transmission
A continuously variable transmission is a transmission that can change steplessly through an infinite number of effective gear ratios between maximum and minimum values. This contrasts with other mechanical transmissions that offer a fixed number of gear ratios...

s, regenerative brake
Regenerative brake
A regenerative brake is an energy recovery mechanism which slows a vehicle or object down by converting its kinetic energy into another form, which can be either used immediately or stored until needed...

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
Pollution
Pollution is the introduction of contaminants into a natural environment that causes instability, disorder, harm or discomfort to the ecosystem i.e. physical systems or living organisms. Pollution can take the form of chemical substances or energy, such as noise, heat or light...

 and oil reliance
Oil depletion
Oil depletion occurs in the second half of the production curve of an oil well, oil field, or the average of total world oil production. The Hubbert peak theory makes predictions of production rates based on prior discovery rates and anticipated production rates. Hubbert curves predict that the...

. 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
Light-emitting diode
A light-emitting diode is a semiconductor light source. LEDs are used as indicator lamps in many devices and are increasingly used for other lighting...

 headlamps.

Safety features on Lexus models range from stability and handling programs (Vehicle Stability Control
Electronic stability control
Electronic stability control is a computerized technology that may potentially improve the safety of a vehicle's stability by detecting and minimizing skids. When ESC detects loss of steering control, it automatically applies the brakes to help "steer" the vehicle where the driver intends to go...

 and Vehicle Dynamics Integrated Management
Vehicle Dynamics Integrated Management
Vehicle Dynamics Integrated Management is an integrated vehicle handling and software control system developed by Toyota. It involves an omnibus computer linkage of traction control, electronic stability control, electronic steering, and other systems, with the intent of improving responsiveness...

) to backup cameras, swivel headlights, and sonar warning systems. The Lexus Pre-Collision System
Precrash system
A precrash system is an automobile safety system designed to reduce the severity of an accident. Also known as forward collision warning systems they use radar and sometimes laser sensors to detect an imminent crash...

 (PCS) integrates multiple safety systems. In 2007, Lexus introduced the first car safety systems with infrared and pedestrian detection capabilities, lane keep assist
Lane departure warning system
In road-transport terminology, a lane departure warning system is a mechanism designed to warn a driver when the vehicle begins to move out of its lane on freeways and arterial roads. These systems are designed to minimize accidents by addressing the main causes of collisions: driver error,...

, a Driver Monitoring System
Driver Monitoring System
Driver Monitoring System, also known as Driver Attention Monitor, is a vehicle safety system first developed by Toyota in 2006 for its and Lexus latest models. It was first offered on the GS 450h. The system's functions co-operate with the Pre-Collision System . The system uses infrared sensors to...

 with facial recognition
Facial recognition system
A facial recognition system is a computer application for automatically identifying or verifying a person from a digital image or a video frame from a video source...

 monitoring of driver attentiveness, and rear pre-collision whiplash
Whiplash (medicine)
Whiplash is a non-medical term describing a range of injuries to the neck caused by or related to a sudden distortion of the neck associated with extension. The term "whiplash" is a colloquialism...

 protection, as part of the LS 460 PCS. As a safety precaution, Lexus GPS navigation systems
Automotive navigation system
An automotive navigation system is a satellite navigation system designed for use in automobiles. It typically uses a GPS navigation device to acquire position data to locate the user on a road in the unit's map database. Using the road database, the unit can give directions to other locations...

 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
Automobile platform
An automobile platform is a shared set of common design, engineering, and production efforts, as well as major components over a number of outwardly distinct models and even types of automobiles, often from different, but related marques...

. The LS flagship uses a dedicated platform, while the entry-level Lexus ES had been chided for being too similar to the Toyota Camry, its shared platform cousin, in both styling and powertrain design. The Nürburgring
Nürburgring
The Nürburgring is a motorsport complex around the village of Nürburg, Germany. It features a modern Grand Prix race track built in 1984, and a much longer old North loop track which was built in the 1920s around the village and medieval castle of Nürburg in the Eifel mountains. It is located about...

 test track in Germany has also seen Lexus prototype testing.

L-finesse

Lexus introduced a new design language
Design language
A design language or design vocabulary is an overarching scheme or style that guides the design of a complement of products or architectural settings...

 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
Kanji
Kanji are the adopted logographic Chinese characters hanzi that are used in the modern Japanese writing system along with hiragana , katakana , Indo Arabic numerals, and the occasional use of the Latin alphabet...

 characters which translate as "Intriguing Elegance, Incisive Simplicity, and Seamless Anticipation". Design characteristics, including a fastback
Fastback
A fastback is a car body style whose roofline slopes continuously down at the back. The word can also designate the car itself. The style is seen on two-door coupés as well as four-door sedans.-History:...

 profile, lower-set grille
Grille
A grille or grill is an opening of several slits side by side in a wall or metal sheet or other barrier, usually to let air or water enter and/or leave but keep larger objects including people and animals in or out.-Spelling:In the United States, "grille" is used to differentiate the automotive...

, and the use of both convex and concave surfaces, are derived from Japanese cultural motifs (e.g. the phrase kirikaeshi
Kirikaeshi
, literal meaning "cutting repeatedly", is a kendo exercise, combining the practice of attacking and receiving strikes and is meant to develop physical strength, spirit, and vigor.It is also known as "striking repeatedly"....

 in arrowhead shapes). While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars, automotive design
Automotive design
Automotive design is the profession involved in the development of the appearance, and to some extent the ergonomics, of motor vehicles or more specifically road vehicles. This most commonly refers to automobiles but also refers to motorcycles, trucks, buses, coaches, and vans...

 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
Sports Car International
Sports Car International was an automobile magazine in the United States published by Ross Periodicals Inc. that was focused on sports cars. The magazine was published from 1986 to 2008. Its business offices were located in Novato, California....

s 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. L-finesse exhibitions were presented at Milan
Milan
Milan is the second-largest city in Italy and the capital city of the region of Lombardy and of the province of Milan. The city proper has a population of about 1.3 million, while its urban area, roughly coinciding with its administrative province and the bordering Province of Monza and Brianza ,...

's Salone del Mobile
Salone del Mobile
The Milan Furniture Fair is a furniture fair held annually in Milan. It is the largest trade fair of its kind in the world. The show showcases the latest in furniture and design from countries around the world....

 from 2005 through 2009.

Production

Many Lexus vehicles are manufactured in Toyota's flagship Tahara plant
Tahara plant
Tahara plant is an automobile plant in Tahara, Aichi, Japan owned by Toyota Motor Corporation. It is a highly computerized and robotized plant and produces the Lexus brand of vehicles including the Lexus LS, Lexus LS Hybrid, Lexus GS, Lexus IS, Lexus GX, and Lexus LX models. Several Toyota...

, a highly sophisticated, computerized manufacturing plant in Japan. Lexus production techniques include methods and standards of quality control
Quality control
Quality control, or QC for short, is a process by which entities review the quality of all factors involved in production. This approach places an emphasis on three aspects:...

 that differ from Toyota models. At the Tahara plant, separate assembly line
Assembly line
An assembly line is a manufacturing process in which parts are added to a product in a sequential manner using optimally planned logistics to create a finished product much faster than with handcrafting-type methods...

s were developed for Lexus vehicles, along with new molds and specialized manufacturing equipment. Welding
Welding
Welding is a fabrication or sculptural process that joins materials, usually metals or thermoplastics, by causing coalescence. This is often done by melting the workpieces and adding a filler material to form a pool of molten material that cools to become a strong joint, with pressure sometimes...

 processes, body panel fit tolerances, and paint quality requirements are more stringent. 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
Takumi
is a Japanese video game company that is famous for developing arcade shoot 'em ups.Following Toaplan's bankruptcy, some of the former staff went to Takumi...

 (Japanese for "artisan") engineers are responsible for maintaining production standards at key points in the assembly process, such as testing engine performance. Production vehicles are given visual inspections for flaws, individually test-driven at high speeds, and subjected to vibration
Vibration
Vibration refers to mechanical oscillations about an equilibrium point. The oscillations may be periodic such as the motion of a pendulum or random such as the movement of a tire on a gravel road.Vibration is occasionally "desirable"...

 tests.

The North American–market RX 350 (since the 2004 model year) is produced in the city of Cambridge
Cambridge, Ontario
Cambridge is a city located in Southern Ontario at the confluence of the Grand and Speed rivers in the Regional Municipality of Waterloo, Ontario, Canada. It is an amalgamation of the City of Galt, the towns of Preston and Hespeler, and the hamlet of Blair.Galt covers the largest portion of...

, in Ontario, Canada, which is the first Lexus production site located outside of Japan. In addition to the Tahara factory, Lexus vehicles have been produced at the Miyata plant (Toyota Motor Kyushu) in Miyawaka, Fukuoka
Miyawaka, Fukuoka
is a city located in Fukuoka, Japan. The city was founded on February 11, 2006, from the merger of the towns of Miyata and Wakamiya, both from Kurate District....

, Higashi Fuji plant (Kanto Auto Works) in Susono, Shizuoka
Susono, Shizuoka
is a city in eastern Shizuoka Prefecture, Japan. As of February 2010, the city has an estimated population of 54,027 and a density of 390 persons per km²...

, and Sanage plant (Toyota Boshoku
Toyota Boshoku
Toyota Boshoku Corporation is a Japanese corporation. It is a member of the Toyota Group of companies. The Toyota Boshoku Corporation has recently entered into the North America market via Toyota Boshoku America...

; Araco) in Toyota City, Aichi. 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
Front-wheel drive
Front-wheel drive is a form of engine/transmission layout used in motor vehicles, where the engine drives the front wheels only. Most modern front-wheel drive vehicles feature a transverse engine, rather than the conventional longitudinal engine arrangement generally found in rear-wheel drive and...

 cars, such as the ES and HS, are produced in the Fukuoka Prefecture
Fukuoka Prefecture
is a prefecture of Japan located on Kyūshū Island. The capital is the city of Fukuoka.- History :Fukuoka Prefecture includes the former provinces of Chikugo, Chikuzen, and Buzen....

. Through the late 2000s, most sedan and SUV production has occurred in Japan at the Tahara plant in Aichi and Miyata plant in Fukuoka.

In 2005, J.D. Power and Associates bestowed its Platinum award for worldwide plant quality on the Tahara plant for the fourth consecutive year, stating that it has the fewest defects of any manufacturing plant in the world. 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
Reliability engineering
Reliability engineering is an engineering field, that deals with the study, evaluation, and life-cycle management of reliability: the ability of a system or component to perform its required functions under stated conditions for a specified period of time. It is often measured as a probability of...

 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
Consumer Reports
Consumer Reports is an American magazine published monthly by Consumers Union since 1936. It publishes reviews and comparisons of consumer products and services based on reporting and results from its in-house testing laboratory. It also publishes cleaning and general buying guides...

 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.
Assembly sites by model
Plant Owner Location Model(s)
Tahara Toyota Motor Corp. Tahara
Tahara, Aichi
is a city located in Aichi Prefecture, Japan. As of August 2011, the city had an estimated population of 63,886 and a population density of 338 persons per km². The total area was 188.81 km².-Geography:...

, Aichi Prefecture
Aichi Prefecture
is a prefecture of Japan located in the Chūbu region. The region of Aichi is also known as the Tōkai region. The capital is Nagoya. It is the focus of the Chūkyō Metropolitan Area.- History :...

LS
Lexus LS
The Lexus LS is a full-size luxury sedan that serves as the flagship model of Lexus, the luxury division of Toyota. Four generations of the sedan have been produced, all equipped with V8 engines and rear-wheel drive, although since 2006 all-wheel drive, hybrid, and long-wheelbase variants have also...

, GS
Lexus GS
The Lexus GS is a series of mid-size luxury sports sedans / executive cars sold by Lexus since 1993. Designed to fill the gap between the ES and LS, and to provide Lexus with a performance sedan to compete in the mid-luxury class, three generations of the GS have been produced to date...

, IS
Lexus IS
The Lexus IS is a series of entry-level luxury cars / compact executive cars sold by Lexus since 1998. The IS was introduced as an entry-level sport model slotted below the ES in the Lexus lineup...

, GX
Lexus GX
The Lexus GX is a mid-size sport utility vehicle sold in North American and Eurasian markets by Lexus. The first generation GX 470 was introduced at the North American International Auto Show in 2002 as a 2003 model, and subsequently became the third SUV to enter Lexus' lineup. The 4.7 L V8...

Kokura Toyota Motor Kyushu, Inc. Kitakyūshū, Fukuoka Prefecture
Fukuoka Prefecture
is a prefecture of Japan located on Kyūshū Island. The capital is the city of Fukuoka.- History :Fukuoka Prefecture includes the former provinces of Chikugo, Chikuzen, and Buzen....

CT
Lexus CT
The Lexus CT 200h is a hybrid electric automobile introduced by Lexus and is an entry-level luxury hatchback. It made its debut at the March 2010 Geneva Auto Show, six months after the unveiling of the LF-Ch concept car; it is primarily targeted at the European market but will be sold worldwide and...

, HS
Lexus HS
The Lexus HS is a dedicated hybrid vehicle introduced by Lexus as a new entry-level luxury compact sedan in 2009. It is classified as a compact under Japanese regulations concerning vehicle exterior dimensions and engine displacement...

, RX
Lexus RX
The Lexus RX is a crossover sport utility vehicle sold since 1998 by Lexus, the luxury division of the Japanese automobile manufacturer Toyota. Three generations of the Lexus RX have been produced to date, the first being compact in size, and the latter two classified as mid-size...

Miyata Toyota Motor Kyushu, Inc. Miyawaka
Miyawaka, Fukuoka
is a city located in Fukuoka, Japan. The city was founded on February 11, 2006, from the merger of the towns of Miyata and Wakamiya, both from Kurate District....

, Fukuoka Prefecture
Fukuoka Prefecture
is a prefecture of Japan located on Kyūshū Island. The capital is the city of Fukuoka.- History :Fukuoka Prefecture includes the former provinces of Chikugo, Chikuzen, and Buzen....

ES
Lexus ES
The Lexus ES series is a family of mid-size luxury sedans sold by Lexus since 1989. Now in its fifth generation, the series has been consistently built on the Toyota Camry platform with a V6 engine, automatic transmission, and front-wheel drive...

, IS
Lexus IS
The Lexus IS is a series of entry-level luxury cars / compact executive cars sold by Lexus since 1998. The IS was introduced as an entry-level sport model slotted below the ES in the Lexus lineup...

, RX
Lexus RX
The Lexus RX is a crossover sport utility vehicle sold since 1998 by Lexus, the luxury division of the Japanese automobile manufacturer Toyota. Three generations of the Lexus RX have been produced to date, the first being compact in size, and the latter two classified as mid-size...

Motomachi Toyota Motor Corp. Toyota City
Toyota, Aichi
is a city located in the Mikawa region of Aichi Prefecture, Japan, east of Nagoya.Toyota's main plant, the Tsutsumi plant, is located here. The longstanding ties between the Toyota Motor Corporation and the town of Toyota-shi, formerly known as Koromo, gave the town its current...

, Aichi Prefecture
Aichi Prefecture
is a prefecture of Japan located in the Chūbu region. The region of Aichi is also known as the Tōkai region. The capital is Nagoya. It is the focus of the Chūkyō Metropolitan Area.- History :...

LFA
Lexus LFA
The Lexus LFA is a 2-seat exotic sports coupe produced by Lexus as a concept car, "halo" vehicle, racing prototype, and production model. It is the second model in the F marque line of performance vehicles from Lexus, following the IS F...

Higashi Fuji Kanto Auto Works, Ltd. Susono
Susono, Shizuoka
is a city in eastern Shizuoka Prefecture, Japan. As of February 2010, the city has an estimated population of 54,027 and a density of 390 persons per km²...

, Shizuoka Prefecture
Shizuoka Prefecture
is a prefecture of Japan located in the Chūbu region on Honshu island. The capital is the city of Shizuoka.- History :Shizuoka prefecture was formed from the former Tōtōmi, Suruga and Izu provinces.The area was the home of the first Tokugawa Shogun...

SC
Lexus SC
The Lexus SC is a personal luxury coupé that was retailed by Lexus, and built from 1991 through 2010. It features a front engine, rear-wheel drive design and seating for up to four passengers. The first generation SC debuted as the V8-powered SC 400 in 1991, and the I6-powered SC 300 was added in...

Sanage Toyota Boshoku Corp. Toyota City
Toyota, Aichi
is a city located in the Mikawa region of Aichi Prefecture, Japan, east of Nagoya.Toyota's main plant, the Tsutsumi plant, is located here. The longstanding ties between the Toyota Motor Corporation and the town of Toyota-shi, formerly known as Koromo, gave the town its current...

, Aichi Prefecture
Aichi Prefecture
is a prefecture of Japan located in the Chūbu region. The region of Aichi is also known as the Tōkai region. The capital is Nagoya. It is the focus of the Chūkyō Metropolitan Area.- History :...

LX
Lexus LX
The Lexus LX is a full-size sport utility vehicle sold by Lexus since 1996. Three generations of the Lexus LX have been produced, all based heavily on the long-running Toyota Land Cruiser series of SUVs. The first generation LX 450 debuted in 1996 as Lexus' first entry into the SUV market. Its...

Cambridge Toyota Canada, Inc. Cambridge
Cambridge, Ontario
Cambridge is a city located in Southern Ontario at the confluence of the Grand and Speed rivers in the Regional Municipality of Waterloo, Ontario, Canada. It is an amalgamation of the City of Galt, the towns of Preston and Hespeler, and the hamlet of Blair.Galt covers the largest portion of...

, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

RX
Lexus RX
The Lexus RX is a crossover sport utility vehicle sold since 1998 by Lexus, the luxury division of the Japanese automobile manufacturer Toyota. Three generations of the Lexus RX have been produced to date, the first being compact in size, and the latter two classified as mid-size...



Service

Lexus has become known for efforts to project 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 wash
Car wash
A car wash or auto wash is a facility used to clean the exterior and, in some cases, the interior of motor vehicles.- Categories :...

es, 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 lot
Parking lot
A parking lot , also known as car lot, is a cleared area that is intended for parking vehicles. Usually, the term refers to a dedicated area that has been provided with a durable or semi-durable surface....

s 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
Auto Express
Auto Express is a weekly motoring magazine sold in the United Kingdom published by Dennis Publishing. The Editor-in-Chief is Steve Fowler.Launched in September 1988, its 1000th issue was published on 20 February 2008. It's only weekly competitor in Britain is the long established Autocar...

 and 76,000-respondent Top Gear
Top Gear (magazine)
Top Gear is an automobile magazine published by BBC Worldwide, and named after the BBC's Top Gear television show. It was first published in October 1993 and is published monthly at a price of £3.95. The major presenters of the television series—Richard Hammond, James May and Jeremy Clarkson—are...

 customer satisfaction surveys in the UK. Lexus has also repeatedly topped the 79,000-respondent J.D. Power Customer Service Index and Luxury Institute
The Luxury Institute
The Luxury Institute is a New York based ratings and research organization that conducts research on the luxury industry. The company offers luxury brand research, wealth-surveys of high net worth consumers, and custom consulting and speaking engagements. It also publishes nine annual issues of...

, 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
Nordstrom
Nordstrom, Inc. is an upscale department store chain in the United States, founded by John W. Nordstrom and Carl F. Wallin. Initially a shoe retailer, the company today also sells clothing, accessories, handbags, jewelry, cosmetics, fragrances, and in some locations, home furnishings...

 department stores and Ritz-Carlton
Ritz-Carlton
The Ritz-Carlton is a brand of luxury hotels and resorts with 75 properties located in major cities and resorts in 24 countries worldwide...

 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
Touring car
A touring car, or tourer, is an open car seating five or more. Touring cars may have two or four doors. Often, the belt line is lowered in the front doors to give the car a more sportive character. They were often fitted with a folding roof and side curtains. Engines on early models were either in...

 series. In its 1999 inaugural season, Team Lexus achieved its first victory with its sixth race at Road Atlanta
Road Atlanta
Road Atlanta is a 2.54-mile road course located just north of Braselton, Georgia, USA. The facility is utilized for a wide variety of events, including professional and amateur sports car and motorcycle races, racing and driving schools, corporate programs and testing for motorsports teams...

. Led by Sports Car Club of America
Sports Car Club of America
The Sports Car Club of America is a club and sanctioning body supporting road racing, rallying, and autocross in the United States. Formed in 1944, it runs many programs for both amateur and professional racers.-History:...

 and International Motor Sports Association
International Motor Sports Association
The International Motor Sports Association is an American sports car auto racing sanctioning body based in Braselton, Georgia. It was started by John Bishop, a former employee of SCCA , and his wife Peggy in 1969 with help from Bill France, Sr...

 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
Phoenix, Arizona
Phoenix is the capital, and largest city, of the U.S. state of Arizona, as well as the sixth most populated city in the United States. Phoenix is home to 1,445,632 people according to the official 2010 U.S. Census Bureau data...

. Team Lexus won its first IS 300 victory that year at the Virginia International Raceway
Virginia International Raceway
The Virginia International Raceway is a road course located in the community of Alton, Virginia near Danville, Virginia. It is found less than a half-mile from the North Carolina/Virginia border just outside Milton, North Carolina on the banks of the Dan River...

. In 2002, Team Lexus' competitive efforts in the Grand-Am Cup ST1 (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
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....

, 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
Super GT
The Super GT series, formerly known as the All-Japan Grand Touring Car Championship or JGTC , is a grand touring car race series promoted by the GT-Association...

 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
André Lotterer
André Lotterer is a German auto racing driver.- Racing career :Lotterer succeeded in both German and British Formula 3 championships en route to being named Jaguar Racing's Formula One test driver in 2002...

 and Juichi Wakisaka
Juichi Wakisaka
is a Japanese racing driver who was a 2002, 2006 and 2009 champion in Japan's Super GT series in the GT500 category. In 2002, Wakisaka raced the Toyota Supra GT with Akira Iida, in 2006 and 2009 Wakisaka raced the Lexus SC 430 with Andre Lotterer....

 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
SARD
is a Japanese tuning company and racing team from Toyota, Aichi, mainly competing in the Super GT series and specialising in Toyota tuning parts.-History:...

 at the 24 Hours of Tokachi race in Hokkaido
Hokkaido
, formerly known as Ezo, Yezo, Yeso, or Yesso, is Japan's second largest island; it is also the largest and northernmost of Japan's 47 prefectural-level subdivisions. The Tsugaru Strait separates Hokkaido from Honshu, although the two islands are connected by the underwater railway Seikan Tunnel...

, Japan. Lexus Canada also entered the GS 450h in 2007's Targa Newfoundland
Targa Newfoundland
Targa Newfoundland is an annual long road rally. It is held over a seven-day period in September of each year on the paved roads of the eastern and central parts of 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
24 Hours of Daytona
The 24 Hours of Daytona, currently known as the Rolex 24 Daytona for sponsorship reasons, is a 24-hour sports car endurance race held annually at Daytona International Speedway in Daytona Beach, Florida. It is run on a combined road course, utilizing portions of the NASCAR tri-oval and an infield...

, sanctioned by the Grand American Road Racing Association
Grand American Road Racing Association
GRAND-AM Road Racing or GRAND-AM is an auto racing sanctioning body that was established in 1999 to organize road racing competitions in North America...

. After entering the Rolex Sports Car Series
Rolex Sports Car Series
The Rolex Sports Car Series is the premier series run by the Grand American Road Racing Association. It is a North American-based sports car series that was founded in 2000 under the name Grand American Road Racing Championship to replace the failed United States Road Racing Championship...

 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
Daytona International Speedway
Daytona International Speedway is a race track in Daytona Beach, Florida, United States. Since opening in 1959, it has been the home of the Daytona 500, one of the most prestigious races in NASCAR. In addition to NASCAR, the track also hosts races of ARCA, AMA Superbike, Grand-Am and Motocross...

. Lexus was a repeat winner of the event, with a Lexus-Riley
Riley Technologies
Riley Technologies LLC is an auto racing constructor and team which specializes in the design and manufacture of complete race cars, as well as prototype development for racing and manufacturing applications.-Grand Am:...

 prototype driven by Scott Pruett
Scott Pruett
Scott Donald Pruett is an American race car driver who has competed in NASCAR, Champ Car, IMSA, Trans-Am and Grand-Am. He and his wife Judy have three children, and are children's book authors....

, Juan Pablo Montoya
Juan Pablo Montoya
Juan Pablo Montoya Roldán is a Colombian race car driver known internationally for participating and winning in Formula One and CART race competitions. He has enjoyed great success. Currently, he competes in NASCAR, driving the #42 Target Chevrolet Impala for Earnhardt Ganassi Racing in the Sprint...

, and Salvador Durán
Salvador Durán
Salvador Durán Sánchez is a Mexican race car driver currently racing in the NACAR Corona Series and formerly Formula Renault 3.5 Series championship with the Interwetten.com team....

 of Chip Ganassi Racing
Chip Ganassi Racing
Chip Ganassi Racing with Felix Sabates is an automotive racing organization with teams competing in the IZOD IndyCar Series and the Rolex Sports Car Series. It is owned by businessmen Chip Ganassi and Felix Sabates. They have won 4 Champ Car, 3 Indy Racing League and 1 Grand-Am championships...

 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
2010 Rolex Sports Car Series season
The 2010 Rolex Sports Car Series season was the 11th season of the Grand Am Rolex Sports Car Series presented by Crown Royal Cask No. 16. It began on January 30 with the Rolex 24 Hours of Daytona...

, Lexus departed from the Rolex Sports Car Series, and Ganassi Racing switched to BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...

/Dinan
Dinan Cars
Dinan Cars designs and manufactures aftermarket performance parts for BMW and MINI automobiles. The company was founded in 1979 by Steve Dinan and is headquartered in Morgan Hill, California....

 engines. The LF-A prototype also competed on the Nürburgring since 2008 in VLN
VLN
The VLN, properly the Veranstaltergemeinschaft Langstreckenpokal Nürburgring is an organisation of motorsport clubs of which each hosts one event of a ten-race series held on the Nürburgring Nordschleife, the "VLN Langstreckenmeisterschaft Nürburgring"...

 endurance races and in the 24 Hours Nürburgring
24 Hours Nürburgring
The 24 Hours Nürburgring is a touring car and GT endurance racing event on the Nürburgring Nordschleife . With a lap length of over , it allows the participation of more than 200 cars, and over 700 drivers.-Overview:...

, also with the IS F.
On May 14, 2011, a CT 200h tuned up by Gazoo Racing competed in the Adenauer ADAC Rundstrecken-Trophy, a six hour endurance race.

Marketing

From its inception, Lexus has been advertised to luxury consumers using specific marketing strategies, with a consistent motif used for the marque's advertisements. Beginning in 1989, television ads were narrated by actor James Sloyan
James Sloyan
James Joseph Sloyan is an American actor. He is married to actress Deirdre Lenihan with whom he has two children, Daniel and Samantha.- Early years :...

 (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" (1989) and rolling "Ball Bearing" (1992). In the 2000s, commercials included descriptions of novel 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 self-parking system
Intelligent Parking Assist System
Intelligent Parking Assist System , also known as the Advanced Parking Guidance System for Lexus models in the United States, is the first production automatic parking system developed by Toyota Motor Corporation in 2004 initially for the Japanese market hybrid Prius models and later Lexus models....

, and in a 2010 LFA spot showing its engine sound shattering a glass via resonance
Resonance
In physics, resonance is the tendency of a system to oscillate at a greater amplitude at some frequencies than at others. These are known as the system's resonant frequencies...

 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 price premiums
Premium pricing
Premium pricing is the practice of keeping the price of a product or service artificially high in order to encourage favorable perceptions among buyers, based solely on the price...

 than rival Japanese makes, with new models further increasing in price and reaching the over- 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 U.S. Open tennis Grand Slam event from 2005 to 2009, and the United States Golf Association
United States Golf Association
The United States Golf Association is the United States' national association of golf courses, clubs and facilities and the governing body of golf for the U.S. and Mexico. Together with The R&A, the USGA produces and interprets the Rules of Golf. The USGA also provides a national handicap system...

's U.S. Open
U.S. Open (golf)
The United States Open Championship, commonly known as the U.S. Open, is the annual open golf tournament of the United States. It is the second of the four major championships in golf, and is on the official schedule of both the PGA Tour and the European Tour...

, 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 pro athletes Andy Roddick
Andy Roddick
Andrew Stephen "Andy" Roddick is an American professional tennis player and a former World No. 1. He is currently the second highest-ranked American player, behind Mardy Fish....

, Annika Sörenstam
Annika Sörenstam
Annika Sörenstam is a Swedish-American professional golfer whose achievements rank her as one of the most successful golfers in history. Before stepping away from competitive golf at the end of the 2008 season, she won 90 international tournaments as a professional, making her the female golfer...

, and Peter Jacobsen
Peter Jacobsen
Peter Erling Jacobsen is an American professional golfer, who has played on the PGA Tour and the Champions Tour. He has won seven events on the PGA Tour and two events on the Champions Tour, both majors.-Early years:...

.

External links

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