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Lexus

Company type	Division
Industry	Automotive industry
Founded	1989
Founder	Eiji Toyoda
Headquarters	Toyota, Aichi, Japan
Area served	Worldwide
Key people	Yasuhiko Ichihashi (CO) Vince Socco (VP, Asia Pacific) Andy Pfeiffenberger (VP, EU) Mark Templin (VP, USA)
Products	Automobiles
Parent	Toyota Motor Corporation
Divisions	F marque
Website	Lexus.com Lexus.eu Lexus.jp

Lexus (レクサス, Rekusasu) is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, where Lexus has ranked as the highest-selling make of luxury car, as of 2006 Lexus vehicles are sold in 68 countries and territories worldwide. In 2005, the division launched in Japan, becoming the first Japanese luxury car marque to be introduced in its home market. The Lexus marque has since debuted in additional export markets as part of the division's ongoing global expansion.

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

From the start of production, Lexus vehicles have been consistently produced in Japan, with manufacturing centered in the Chūbu and Kyūshū regions, and in particular at Toyota's Tahara, Aichi, Chūbu and Miyata, Fukuoka, Kyūshū plants. Assembly of the first Lexus built outside the country, the Ontario, Canada-produced RX 330, began in 2003. Following a corporate reorganization from 2001 to 2005, Lexus operates its own design, engineering, and manufacturing centers, solely responsible for the division's vehicles.

Since 1989, Lexus has developed a reputation for vehicle reliability and customer service, as measured by independent surveys. Consumer ratings firm J.D. Power and Associates has named Lexus the most reliable brand in the U.S. fourteen times, most recently in 2008, based on its Vehicle Dependability Survey of over 53,000 vehicle owners and problems experienced in the first three years of ownership. Through 2008, Consumer Reports has 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.

The Lexus slogan is "The Pursuit of Perfection."

History

The F1 project

In 1983, Toyota chairman Eiji Toyoda 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” + “No. 1 vehicle”). The F1 project, whose finished product was ultimately the Lexus LS 400, aimed to develop a luxury car that would expand Toyota’s product line, giving it a foothold in the premium segment and offering both longtime and new customers an upmarket product. The F1 project followed the success of the Toyota Supra sports car and the luxury Toyota Cressida models. Both the Supra and Cressida were rear-wheel drive cars with a powerful 7M-GE/7M-GTE engine. The U.S. launch of the Acura marque by Honda three years prior also influenced Toyota in its plans for a luxury division. Around this same time, Nissan would unveil plans to create its own luxury division, Infiniti, while Mazda also considered developing a luxury division, to be called Amati.

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market research on luxury consumers. That summer, several F1 designers rented a home in Laguna Beach, California to observe the lifestyles and tastes of American upper-class consumers. Toyota’s market research concluded that a separate brand and sales channel were needed to present its new luxury flagship, 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 formed a specialized unit, Team One, to handle marketing for the new luxury 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 (also associated with the Alexis Carrington character on the popular 1980s primetime drama Dynasty) and later morphed to Lexus, the 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 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 obtained a temporary injunction 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 their 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 US$1-billion in costs, the F1 project was completed. The resulting flagship, the Lexus LS 400, had a unique design that shared no major elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-wheel drive. Testing locations for the LS 400 included the German autobahn.

The LS 400 debuted in January 1989 at the North American International Auto Show in Detroit. The following September, Lexus vehicles officially went on sale 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. The launch of Lexus was heralded by a multimillion dollar advertising campaign in both television and print media. Lexus subsequently began exports to the United Kingdom, Switzerland, Canada, and Australia, starting in 1990.

The LS 400 was widely praised for its quietness, well-appointed and ergonomic interior, engine performance, build quality, aerodynamics, fuel economy, and value, although it was criticized by some automobile columnists for derivative styling and a suspension regarded as too compromising of handling for ride comfort. The LS 400 debuted at US$38,000 in the U.S. (in some markets, it was priced against midsize six-cylinder Mercedes-Benz and BMW models) and was rated by Car and Driver magazine as better than both the US$63,000 Mercedes-Benz 420 SEL and the US$55,000 BMW 735i in terms of ride, handling, and performance. The LS 400 also won major motoring awards from publications including Automobile Magazine and Wheels Magazine. Lexus' debut was generally regarded as a major shock to the European marques; BMW's and Mercedes-Benz's U.S. sales figures dropped 29% and 19%, respectively, with BMW executives accusing Lexus of dumping in that market.

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 operation which replaced the affected parts on all vehicles over a period of 20 days, 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. 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. By 1991, sales had increased to 71,206 cars in the U.S. market, making Lexus the country's top-selling luxury import. That same year, Lexus received first place in J.D. Power’s studies on initial vehicle quality, customer satisfaction, and sales satisfaction.

Growth and expansion

Lexus introduced two new models in June and September 1991, the SC 400 coupe and ES 300 sedan. The SC 400 shared the LS 400’s V8 engine and rear-wheel drive design, while the ES 300 replaced the ES 250 and became Lexus’ best-selling sedan. In 1993, the GS series came to America, based on the Toyota Aristo, which had sold for two years prior in Japan. That same year, Lexus also became one of the first marques to debut a certified pre-owned program, with the aim of improving trade-in model values. In 1994, the marque introduced the second generation LS 400, a complete redesign of its flagship model. In May 1995, sales were threatened by the U.S. government's proposal of 100 percent tariffs on Japanese luxury cars in response to the widening U.S.-Japan trade deficit. Normal sales operations resumed a month later when the Japanese auto manufacturers collectively agreed to greater American investments, and the tariffs were not enacted.

In 1996, Lexus added its first luxury sport utility vehicle, the LX 450. Two years later, Lexus debuted the first luxury crossover SUV, the RX 300; the second generation of the GS 300 and GS 400 sedans; and a new entry-level sedan, the IS 300. The RX quickly became the marque's best-selling model, displacing the ES, its previous best-seller. In 1999, Lexus recorded its one-millionth vehicle sold in the U.S. market, and was ranked the top-selling luxury automobile make in the U.S. overall. In 2001, Lexus introduced its first convertible, the SC 430, and the third generation LS 430. The second generation RX 330 debuted in 2003.

In 2005, Lexus debuted the first production hybrid luxury SUV, the RX 400h. The vehicle used a Lexus Hybrid Drive system which combined gasoline and electric motors for increased power, fuel efficiency, and lower emissions relative to gasoline-only equivalents. In 2006, Lexus unveiled the GS 450h, a V6 hybrid performance sedan. That same year, the marque premiered the fourth generation flagship LS series, comprising both standard- and long-wheelbase V8 (LS 460 and LS 460 L) and hybrid (LS 600h and LS 600h L) versions. The LS 600h L subsequently went on sale as the most expensive luxury vehicle ever produced in Japan, with a sticker price of approximately US$125,000. In 2006, Lexus sales reached 475,000 vehicles worldwide.

In 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 concept, the LF-A. By the end of 2007, Lexus' annual U.S. sales had risen to 329,177 vehicles, and total worldwide sales reached 500,000 vehicles. In 2008, amidst the late-2000s recession, sales dropped 21% in the U.S., with an annual total of 260,087, and global sales fell 14% to 430,000. In terms of volume, Lexus was the number-one-selling luxury car marque in the largest automotive market for the past eight years consecutively and the fourth-largest luxury car brand in the world by volume.

Global development

In 2005, Lexus completed a full 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. Executives aimed to grow the marque's sales outside of its largest market in the U.S. The next generation IS, GS, and LS sedans were subsequently designed as "global models" for worldwide markets. Lexus launched in China in 2005, Malaysia in 2006, Indonesia in 2007, Chile in 2008, and the Philippines in 2009. Plans called for an expansion from a total of 68 countries in 2006 to 76 worldwide by 2010. The largest 2007 sales markets, in order of size, were the U.S., Japan, the UK, China, Canada, and Russia. In 2008, sales growth was limited by a weakened luxury car market in major world regions, including North America, Asia, and Europe.

Japan

Lexus' arrival in the Japanese market in July 2005 marked the first introduction of a Japanese luxury marque in the domestic market. The IS, GS, and SC models became available in Japan in 2005. Sales were initially slower than expected, but increased the following year. In particular, the introduction of the LS 460 in September 2006 exceeded expectations, with over 12,000 orders in its first month on sale. Lexus Japan's network of 143 new dealerships became profitable in 2007. The marque's Japanese debut ended domestic sales of previous generation Toyota-equivalent models; right-hand drive versions of the LS, SC, RX, IS, and GS were previously sold in Japan under Toyota's Celsior, Soarer, Harrier, Altezza, and Aristo nameplates, respectively. With next generation models, these nameplates were no longer used and new models realigned to Lexus Japan dealerships. The dramatic price increase (from ¥1-million and up) on models previously sold under the Toyota badge and shifted to Lexus with the next generation was considered a main reason for initial slow Japanese sales, along with the overall contraction of the domestic auto market.

Europe

In the European market, Lexus has long struggled with smaller brand recognition; perceived lack of prestige compared to domestic luxury brands; minor market share; and the absence of an independent dealership network. After import quotas were relaxed in 1998, the marque remained a small player on the continent. In 2005, Lexus announced plans to introduce its first hybrid and diesel vehicles and expand the number of dedicated dealerships in Europe. In 2006, the newly introduced diesel IS 220d mainly accounted for sales increases in the UK; hybrids accounted for a quarter of total sales and outsold their petrol counterparts. The London congestion charge has added incentive by excluding hybrid vehicles. An emerging market for Lexus Europe is Russia, where the marque ranked fourth in luxury car sales in 2007, and received its largest sales increases on the continent that year. Total Europe sales increased 72% in 2006 to over 50,000 vehicles; held flat in 2007, and dropped 27.5% in 2008.

Asia and Oceania

In South Korea, with sales of the ES leading its lineup, Lexus was ranked as the top-selling import in 2005; in Taiwan, Lexus also became the top-selling luxury import in 2005. In 2007, Lexus captured the import sales lead in the China's emerging luxury car market, which along with Russia saw higher per-dealership sales than any other region. The number of Lexus dealerships in China expanded to 23 in 2007, and increased demand for luxury SUVs contributed to sales growth that year. In Australia, Lexus ranked third in luxury car sales through the late 2000s, with the RX model generating the greatest demand.

Latin America

Lexus officially launched sales in Brazil in January 1998, making its debut in South America's most populous country. The Brazil model lineup consisted of the LS and ES sedans, and sales operations subsequently grew to 14 dealerships nationwide. The marque has also been marketed in Costa Rica via regional distributor Purdy Motors S.A., with the country being one of the first in Central America to receive the brand. During the Santiago Auto Salon in 2006, Lexus officials announced plans to begin sales in Chile in mid-2007. After an apparent delay, the marque officially launched in Chile in April 2008 with the opening of its first salesroom in Las Condes, Santiago, with models sold including the IS, GS, LS, SC, and LX vehicles.

Corporate affairs

As of 2009, coordination of global Lexus Division product strategy involves Yasuhiko Ichihashi, chief officer, and Kiyotaka Ise, general manager, of the Lexus Development Center in Japan. Ise, a managing officer in Toyota Motor Corporation's executive leadership, succeeded previous general manager Takeshi Yoshida, who was promoted to senior managing director on the Toyota board in June 2007. Other Lexus Japan executives include Yoichiro Ichimaru, senior managing director of Lexus Japan Sales and Marketing, and Toshio Furutani, managing officer at the Lexus Product and Marketing Planning Division.

In the U.S., Lexus operations are headed by Mark Templin, group vice president and general manager of the U.S. Lexus Division. In Europe, Lexus operations are headed by Andy Pfeiffenberger, vice president of Lexus Europe. Lexus Japan headquarters are located in Toyota, Aichi, Japan. Companion Lexus design facilities are located in Southern California and Toyota, Aichi.

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 rates, Lexus sales have accounted for as much as half of Toyota's annual U.S. profit in certain years. In 2006, Lexus entered Interbrand's list of the Top 100 Global Brands for the first time, with an estimated brand value of approximately US$3 billion annually. In 2009, responding to industry-wide sales declines, U.S. division executives opted against increasing price incentives to match those of rival brands, with the stated goal of maintaining profit margins rather than sales volume.

Models

Current models

• IS: compact car RWD/AWD
  • 2009 IS 250/IS 250 AWD/IS 300/IS 350/IS 220d/IS F
  • 2010 IS 250 C/IS 300 C/IS 350 C
• HS: compact car FWD
  • 2010 HS 250h
• ES: midsize FWD
  • 2009 ES 350
• GS: midsize RWD/AWD
  • 2009 GS 350/GS 350 AWD/GS 460
  • 2009 GS 450h
• LS: full-size RWD/AWD
  • 2009 LS 460/LS 460 AWD/LS 460 L/LS 460 L AWD
  • 2009 LS 600h/LS 600h L
• SC: coupé/coupé convertible RWD
  • 2009 SC 430
• RX: midsize crossover SUV
  • 2010 RX 350
  • 2008 RX 400h
• GX: midsize sport utility vehicle
  • 2009 GX 470
• LX: full-size sport utility vehicle
  • 2009 LX 570

Production model history

• IS: compact RWD/AWD
  • 2000 IS 200/IS 300
  • 2006 IS 250/IS 250 AWD/IS 350/IS 220d
  • 2008 IS F
  • 2010 IS 250 C/IS 350 C
• HS: compact FWD
  • 2010 HS 250h

• ES: midsize FWD
  • 1990 ES 250
  • 1992 ES 300
  • 1997 ES 300
  • 2004 ES 330
  • 2007 ES 350
• GS: midsize RWD/AWD
  • 1993 GS 300
  • 1998 GS 300/GS 400
  • 2001 GS 430
  • 2006 GS 300/GS 300 AWD/GS 430/GS 450h
  • 2008 GS 350/GS 350 AWD/GS 460
• LS: full-size RWD/AWD
  • 1990 LS 400
  • 2001 LS 430
  • 2007 LS 460/LS 460 L
  • 2008 LS 600h/LS 600h L
  • 2009 LS 460 AWD/LS 460 L AWD
• SC: coupé/coupé convertible RWD
  • 1992 SC 300/SC 400
  • 2002 SC 430
• RX: midsize crossover SUV
  • 1998 RX 300
  • 2004 RX 330
  • 2006 RX 400h
  • 2007 RX 350
  • 2010 RX 350/RX 450h
• GX: midsize sport utility vehicle
  • 2003 GX 470
• LX: full-size sport utility vehicle
  • 1997 LX 450
  • 1999 LX 470
  • 2008 LX 570

Concept vehicles

• LF series concepts
  • 2003 LF-X: crossover
  • 2003 LF-S: luxury sedan
  • 2004 LF-C: convertible
  • 2005 LF-A: sports coupe
  • 2006 LF-Sh: hybrid luxury sedan
  • 2007 LF-Xh: hybrid crossover
  • 2008 LF-AR: roadster
• Past concept vehicles
  • 1994 Italdesign Lexus Landau: hatchback
  • 1995 Lexus FLV: minivan
  • 1997 Lexus Street Rod: roadster
  • 1997 Lexus SLV: sport luxury vehicle
  • 1997 Lexus HPS: sports sedan
  • 2003 Lexus IS 430: sports sedan

Nomenclature

Lexus production models are named alphanumerically using two-letter designations followed by three digits. The first letter indicates relative status in the Lexus model range (ranking), and the second letter refers to car body style or type (e.g. LS for 'luxury sedan'). The three digits indicate engine displacement 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' or SUV. On hybrids, the three digits refer to the combined gas-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 luxury vehicle standards. Since the marque's inception, design targets have ranged from aerodynamics and ride quality to interior ergonomics. The acronym "IDEAL" ("Impressive, Dynamic, Elegant, Advanced, and Lasting") is used in the development process. Each vehicle is designed according to approximately 500 specific product standards, known as "Lexus Musts," on criteria such as leather seat stitching. Design elements from the marque's concept vehicle line, the LF series (including the 2003 LF-S and 2004 LF-C), have been incorporated in production models.

Vehicle cabins have incorporated touchscreen navigation system interfaces (through the 2009 model year), a smart key entry and startup system, SmartAccess, and electroluminescent Optitron gauges. In 1989, Lexus became among the first luxury marques to equip models with premium audio systems, in partnership with stereo firm Nakamichi. Since 2001, optional surround sound systems are offered via high-end audio purveyor Mark Levinson. For reduced cabin noise, the first LS 400 introduced sandwich steel plating, and later models added acoustic glass. In 2006, the LS 460 debuted the first ceiling air diffusers and infrared body temperature sensors in a car. For the 2010 RX and HS models, the Remote Touch system, featuring a computer mouse-like controller with haptic feedback, was introduced.

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 braking, 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 different 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 systems (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 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.

New Lexus vehicles in development include convertibles, crossovers, and dedicated hybrids. Lexus officials have indicated the marque's intentions to produce future production models using further dedicated platforms, as is the case for the LS flagship. The entry-level Lexus ES, in particular, had been chided for being too similar to the Toyota Camry, its shared platform cousin, in both styling and powertrain design. Lexus prototypes have been spotted testing at the Nürburgring test track in Germany.

L-finesse

Lexus introduced a new design language known as "L-finesse" with its LF series concepts and later with 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's debut as adding a distinctive nature and embrace of Japanese design identity. Opinions varied for L-finesse's debut on the 2006 GS; Sports Car International's analysis praised the vehicle's in-person appearance; Automobile Magazine criticized the daring of its forward styling, and later suggested that the Jaguar XF was designed with similarities to the GS. L-finesse exhibitions were presented at the Milan Design Week from 2005 through 2009.

Production

Many Lexus vehicles are manufactured in Toyota's flagship Tahara plant, a highly sophisticated, computerized manufacturing plant in Japan. Lexus production techniques include methods and standards of quality control that differ from Toyota models. At the Tahara plant, separate assembly lines were developed for Lexus vehicles, along with new molds and specialized manufacturing equipment. Welding 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 (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 tests.

The North American-market RX 350 (since the 2004 model year) is produced in the city of Cambridge, 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, Higashi Fuji plant (Kanto Auto Works) in Susono, Shizuoka, and Sanage plant (Toyota Boshoku; Araco) in Toyota, Aichi. As of 2008, most sedan and SUV production occurs 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, stating that it has the fewest defects of any manufacturing plant in the world. It was the fourth consecutive year that the Tahara plant captured this award. 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.

Service

Lexus has become known for efforts to project a luxury 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 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 owner publication, Lexus Magazine, features automotive and lifestyle articles and is issued quarterly online.

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

Motorsport

Lexus first entered the motorsport arena in 1999 when its racing unit, Team Lexus, fielded two GS 400 race vehicles in the Motorola Cup North American Street Stock Championship touring car series. In its 1999 inaugural season, Team Lexus achieved its first victory with its sixth race at Road Atlanta. Led by Sports Car Club of America and International Motor Sports Association driver Chuck Goldsborough, based in Baltimore, Maryland, Team Lexus capitalized on the debut of the first generation Lexus IS by entering three IS 300s in the third race of the 2001 Grand-Am Cup season at Phoenix, Arizona. Team Lexus won its first IS 300 victory that year at the Virginia International Raceway. 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, Canada.

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

Lexus' participation in endurance racing further includes the Rolex 24 Hours of Daytona, sanctioned by the Grand American Road Racing Association. After entering the Rolex Sports Car Series in 2004, Lexus has won over 15 Rolex Series event races. In 2005, Lexus was runner-up, and in 2006, it won the championship. Although Toyota has won this race in the past, it was the first time that its luxury arm emerged as the winner. In 2007, six Lexus-powered Daytona prototypes were entered in the Rolex 24 Hours of Daytona event at the Daytona International Speedway. Lexus was a repeat winner of the event, with a Lexus-Riley prototype driven by Scott Pruett, Juan Pablo Montoya, and Salvador Durán of Chip Ganassi Racing finishing first; Lexus-Riley prototypes also took three of the top ten spots. In 2008, Lexus won its third consecutive win at Daytona.

F marque

In December 2006, Lexus announced its new F marque division. The name refers to the Fuji Speedway in Japan, whose first corner, 27R, inspired the shape of the "F" emblem. The first F badged vehicle, the Lexus IS F, subsequently premiered at the North American International Auto Show in January 2007. Media reports suggested that the IS F sedan would be followed by a GS F sedan and IS F coupe. An earlier in-house tuning effort, the TRD-based L-Tuned, had offered performance packages on the IS and GS sedans in the early 2000s. In 2007, Lexus entered the IS F in the 2007 Specialty Equipment Market Association show, offering a factory-sanctioned F-Sport performance accessory line in conjunction with the debut of its F marque division.

The IS F is targeted at rivals from Mercedes-Benz's AMG and BMW's M divisions. Historically, past versions of the SC and GS models have received favorable reactions from sport luxury buyers, while other Lexus models have been characterized as favoring comfort at the expense of sporty performance. Automotive reviewers have also given some of Lexus' European rivals higher marks for road feel and handling, especially during racetrack testing. The F marque line has been seen as an effort to further bolster Lexus' performance credentials.

Marketing

From its inception, Lexus was advertised to luxury consumers using specific marketing strategies, with a consistent motif used for the marque's advertisements. Beginning in 1989, television ads were commonly narrated by film and television actor James Sloyan (who was the voice of "Mr. Lexus" from 1989 onward), and accompanied by vehicles that performed unusual stunts onscreen. The first decade of commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless," "pursuit," and "perfection," while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera. Newer ads have included descriptions of novel features, or a narration of the events onscreen. Since 2001, an annual "December to Remember" campaign features scenes of family members surprising loved ones with the gift of a new Lexus. In 2009, after twenty years of featuring James Sloyan, Lexus hired actor James Remar for ad voice-overs.

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 luxury makes. Lexus has since grown to command higher price premiums than rival Japanese makes, with new models expected to further increase in price; in 2007, the LS 600h L became the first Lexus to be advertised in the US$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 since 2005, 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 pro athletes Andy Roddick, Annika Sörenstam, and Peter Jacobsen.

See also

References

Notes

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Bibliography

• Dawson, Chester. Lexus: The Relentless Pursuit. 2004: Jon Wiley & Sons, NJ. ISBN 0-470821-10-8.
• Long, Brian. Lexus: The Challenge to Create the Finest Automobile. 2001: Veloce Publishing, Cardiff. ISBN 1-901295-81-8.
• Mahler, Jonathan. The Lexus Story: The Behind the Scenes Story of the #1 Automotive Luxury Brand in America. 2004: DK Melcher Media, NY. ISBN 0-971793-57-3.
• May, Matthew E. The Elegant Solution: Toyota's Formula for Mastering Innovation. 2006: Free Press, NY. ISBN 0-743290-17-8.
• Morgan, James M. & Liker, Jeffrey K. The Toyota Product Development System: Integrating People, Process and Technology. Productive Press, NY. ISBN 1-563272-82-2.

External links

• Official sites for Australia, Canada, Chile, China, Japan, Philippines, UK, USA
• Template:Dmoz

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