Lexus

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

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

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

1990s: Growth and expansion

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

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

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

2000s: Global reorganization

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

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

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

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

Hybrids and F models

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

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

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

2010s

In 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. held steady despite the 2009–2010 Toyota vehicle recalls, several of which included Lexus models. The ES 350 and certain IS models were affected by a recall for potentially jamming floor mats, while parent company Toyota bore the brunt of negative publicity amid investigations over its series of product recalls and problem rates per-vehicle. The redesigned GX 460 was also voluntarily recalled in April 2010 for a software update, one week after Consumer Reports issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow stability control response to a high-speed emergency turn. Although the publication knew of no reported incidents, the GX 460 received updated stability control software.

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

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

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

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

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

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

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

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

L-finesse

Lexus introduced a new design language known as "L-finesse" in the mid-2000s with its LF series concepts and the 2006 Lexus GS. L-finesse is represented by three Japanese kanji characters which translate as "Intriguing Elegance, Incisive Simplicity, and Seamless Anticipation". Design characteristics, including a fastback profile, lower-set grille, and the use of both convex and concave surfaces, are derived from Japanese cultural motifs (e.g. the phrase kirikaeshi in arrowhead shapes). While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars, automotive design analyses described L-finesse as adding a distinctive nature and embrace of Japanese design identity.

Opinions varied for L-finesse's debut on the GS; Sports Car International'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. In 2012, the arrival of the redesigned fourth generation Lexus GS featured the introduction of a spindle-shaped grille design, intended to be used on all forthcoming Lexus models. L-finesse exhibitions were presented at Milan's Salone del Mobile from 2005 through 2009.

Production

Assembly plants

The first Lexus vehicles were manufactured in Toyota's Tahara plant, a computerized manufacturing plant in Japan. Through the 2000s, most Lexus sedan and SUV production has occurred in Japan at the Tahara plant in Aichi and the Miyata plant in Fukuoka. In addition to the Tahara factory, over time Lexus vehicles have been produced at the Miyata plant (Toyota Motor Kyushu) in Miyawaka, Fukuoka; the Higashi-Fuji plant (Kanto Auto Works) in Susono, Shizuoka; and the Yoshiwara plant (Araco, later Toyota Auto Body) in Toyota City, Aichi. Front-wheel drive cars, such as the ES and HS, have been produced in the Fukuoka Prefecture.

Toyota Motor Kyushu's Kokura plant in Kitakyushu, Fukuoka, which opened in 2008, is a dedicated hybrid production site for hybrid systems used in Lexus models such as the gasoline-electric RX. The North American–market RX 350 (since the 2004 model year) is produced at the Cambridge plant (Toyota Canada, Inc.) in the city of Cambridge, in Ontario, Canada, which is the first Lexus production site located outside Japan. In late 2015, Lexus started to assemble North American-spec ES 350 sedans at the Georgetown plant (TMMK, Inc.). In January 2020, Toyota Kirloskar Motor of India started assembling the ES sedan in its Bidadi plant. Toyota planned to produce Lexus-branded EVs in its Shanghai factory beginning in 2027, which will be wholly owned (the second after Tesla's Gigafactory Shanghai and the first by a Japanese automaker).

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

Quality rankings

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

Service

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

Since 2002, Lexus has scored consecutive top ratings in the Auto Express and 76,000-respondent Top Gear customer satisfaction surveys in the UK. Lexus has also repeatedly topped the Luxury Institute, New York surveys in the U.S. To improve customer service, employees are instructed to follow the "Lexus Covenant", the marque's founding promise (which states that "Lexus will treat each customer as we would a guest in our home"), and some dealerships have incorporated training at upscale establishments such as Nordstrom department stores and Ritz-Carlton hotels.

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 (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 (decade), commercials included descriptions of features, or a narration of the events onscreen, and were often targeted at the marque's German competitors. An annual "December to Remember" campaign featured scenes of family members surprising loved ones with the gift of a new Lexus. The marque returned to the champagne glass theme in a 2006 LS 460 spot showing the sedan maneuvering between two stacks of glasses using its self-parking system, and in a 2010 LFA spot showing its engine sound shattering a glass via resonance frequency.

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

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

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

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

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

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

Lexus has renewed its sponsorship of the Esports Awards on 23 October 2024. As part of the partnership, Lexus will present awards for "Esports Content Creator of the Year" and "Esports Organization of Year" during the second half of the awards ceremony, which will take place in November 2024. The first half of the awards was presented in July 2024 during the Esports World Cup in Riyadh, Saudi Arabia. Financial terms of this continued partnership were not disclosed.

Lexus slogans

The Relentless Pursuit of Perfection (1989–2011)

The Pursuit of Perfection (2010–2016)

Amazing in Motion (2013–2016)

Experience Amazing (2017–present)