Lexus
Parent Toyota Motor Corporation | | |
Website | Official sites |
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Lexus (レクサス, Rekusasu) is the
Created at around the same time as Japanese rivals
Lexus vehicles are largely produced in Japan, with manufacturing centered in the
Since the 2000s, Lexus has increased sales outside its largest market, the United States. The division inaugurated dealerships in the Japanese domestic market in 2005, becoming the first Japanese premium car marque to launch in its country of origin.[9] The brand has since debuted in Southeast Asia, Latin America, Europe and other regions, and has introduced hybrid vehicles in many markets.
History
1980s: The F1 project
The Lexus brand was created around the same time as Japanese rivals Nissan and Honda developed their Infiniti and Acura premium brands. The Japanese government imposed
In 1983, Toyota chairman
Japanese manufacturers exported more expensive models in the 1980s due to
Toyota researchers visited the U.S. in May 1985 to conduct
Brand development
In 1986, Toyota's longtime advertising agency
Theories of the etymology of the Lexus name have suggested it is the combination of the words "luxury" and "elegance",
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."[28] Three firms were involved in the final phase of logo development: Saatchi & Saatchi, Molly Designs and Hunter/Korobkin, Inc.[29] The finished logo was a combination of two firms' final designs: the Lexus logo typeface came from Saatchi & Saatchi and the "L" was Hunter/Korobkin, Inc.'s design. According to Toyota, the automaker made some refinements so the logo would be easier to manufacture, rendering it using a mathematical formula.[30][24] The first teaser ads featuring the Lexus name and logo appeared at the Chicago, Los Angeles and New York auto shows in 1988.[31]
Launch
The F1 project was completed in 1989, involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, approximately 450 prototypes and more than $1 billion in costs.
The LS 400 was praised for its quietness, well-appointed and
In December 1989, Lexus initiated a voluntary recall of all 8,000 LS 400s based upon two customer complaints over defective
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.[45] 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.[46] Following initial models, plans called for the addition of a sports coupe along with a redesigned ES sedan.[47]
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.,
In 1993, Lexus launched the mid-size
In 1996, Lexus debuted its first sport utility vehicle, the
2000s: Global reorganization
In July 2000, Lexus introduced the
In 2005, Lexus completed an organizational separation from parent company Toyota,[69] with dedicated design, engineering, training, and manufacturing centers working exclusively for the division.[70][71] 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.[71][72] Executives aimed to increase Lexus sales outside of its largest market in the U.S.[71][73] To accompany this expansion, next generation Lexus vehicles were redesigned as "global models" for international release.[74] In the European market, where Lexus had long faced struggling sales owing to low brand recognition, few dedicated dealerships, and 1990s import quotas,[75][76] the marque announced plans to introduce hybrid and diesel powertrains,[77] increase the number of Lexus dealerships, and expand operations in emerging markets such as Russia.[78][79]
Lexus' arrival in the Japanese market in July 2005 marked the first introduction of a Japanese premium car marque in the domestic market.
Through the mid-2000s, Lexus experienced sales successes in South Korea and Taiwan, becoming the top-selling import make in both markets in 2005;[85][86] the marque also sold well in the Middle East, where it ranked first or second among rivals in multiple countries,[87] and in Australia, where Lexus reached third in luxury car sales in 2006.[88][89] Division executives in 2006 announced an expansion goal from 68 countries to 76 worldwide by 2010.[90] By the end of the decade, this expansion resulted in official launches in Malaysia and South Africa in 2006,[91][92] Indonesia in 2007,[93] Chile in 2008,[94][95] and the Philippines in 2009.[96]
Hybrids and F models
In 2006, Lexus began sales of the
In October 2007, Lexus entered the
In 2008, amidst the
2010s–2020s: Recent developments
In 2010, Lexus underwent a gradual sales recovery in North America and Asia as the marque focused on adding hybrids and new model derivatives.
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.[124][125] 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.[126][127] 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.[128] 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.[128]
Cumulative sales results for 2011 indicated a 14 percent sales drop in the U.S. market,[129] along with sales increases of 40 percent and 27 percent in Europe and Japan respectively,[130][131] for a global sales total of 410,000 units.[132] 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.[133] 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.[134] 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.[133][134]
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.[135] In April 2012, the sixth generation ES line, including ES 350 and ES 300h variants, debuted at the New York International Auto Show.[136]
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.[137]
In March 2016, Lexus announced that it will be producing a new flagship vehicle: the two-door LC 500. The vehicle will be produced for late 2017 in a V8 version putting out 467 horsepower. The LC 500h, a V6 hybrid variant, could potentially become available in late 2017 or early 2018.
In April 2019, Lexus announced that a rebadged limousine version of the third-generation Toyota Alphard would be sold as the Lexus LM.[138] It was also announced that Lexus would finally enter the market in Mexico in 2021 with some of the vehicles in their lineup.[139] In October 2019, Lexus announced that it will be launching the brand's first all-battery electric vehicle in 2020.[140]
Corporate affairs
Regional sales, 2011 | Units |
---|---|
Japan[131] | 42,365 |
China[141] | 56,303 |
Europe[130] | 43,637 |
United States[129] | 198,552 |
Type production, 2010 | Units |
Passenger vehicles |
205,070 |
Crossover SUVs | 159,560 |
Hybrid vehicles | 66,226 |
Line production, 2010 | Units |
Japan production[142] | 283,012 |
Canada production[143] | 81,618 |
Total | 364,630 |
Operations
Lexus International coordinates the worldwide operations of Toyota's luxury division[144][145] from the brand's global headquarters, located in Nagoya, Aichi.[146][144] Corporate entities further include the brand's Japan Sales and Marketing and global Product and Marketing Planning divisions.[145][147] While organizationally separate from its parent company, Lexus International reports directly to Toyota chief executive officer Akio Toyoda.[132] In the U.S., brand operations are managed by the U.S. Lexus division, which is headquartered in Plano, Texas.[148] In Europe, Lexus operations are managed by Lexus Europe, located in Brussels.[149] Companion design facilities are located in Southern California[150] and central Japan,[151] with the head design studio devoted entirely to Lexus models in Toyota City, Aichi.[151][152]
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,
The Lexus brand launched in the Indian market in 2017,
Sales
Global sales of Lexus vehicles reached an all-time high in 2007, with a total of 518,000. Sales decreased in subsequent years due to the effects of the 2008 recession and the Japanese tsunami of 2011. Following this, sales recovered and reached a new high of 523,000 in 2013.[158]
In 2014, the Lexus brand set a new global sales record after selling 582,000 vehicles. This made Lexus the fourth best selling luxury brand in the world, trailing BMW, Audi and Mercedes-Benz.[159]
Global sales of Lexus vehicles increased by 12 percent in 2015 to reach another annual sales record with 652,000 units sold worldwide.[160]
Global cumulative sales of Lexus brand hybrid electric cars reached the 500,000 mark in November 2012.[161] The 1 million sales milestone was achieved in March 2016.[162] The Lexus RX 400h/RX 450h ranks as the top selling Lexus hybrid with 335,000 units delivered worldwide as of March 2016[update], followed by the Lexus CT 200h with 267,000 units.[162]
Lexus has not sold as well in Europe, where it suffers from smaller brand recognition, image, and a less-developed dealership network.[163] In European markets, the Lexus LS has ranked behind Jaguar, Mercedes-Benz, Audi, and BMW in flagship luxury car sales.[164] Automotive analysts have suggested a possible rationale for the sales disparity, in that European buyers place less emphasis on vehicle reliability and have more brand loyalty to established domestic marques.[163] In contrast, the Lexus LS has ranked second in sales to the Mercedes-Benz S-Class (and ahead of rivals from BMW, Audi, and Jaguar) in markets outside Europe, such as South Africa.[165]
Currently all of Lexus's models for the US market are imported from Japan, with the exception of the RX and NX, which are also produced in Cambridge, Ontario, for North America, and the ES, which is also produced in Georgetown, Kentucky. The RX midsized crossover is Lexus's best selling model in the United States, while the ES mid-sized car is the most popular sedan in the line-up.
Calendar Year | Europe[166] | US (Market share %)[167] |
---|---|---|
2017 | 44,944 | 305,229 (1.77) |
2016 | 44,287 | 331,228 (1.89) |
2015 | 39,255 | 344,601 (1.97) |
2014 | 31,479 | 311,389 (1.88) |
2013 | 23,708 | 273,847 (1.76) |
2012 | 26,820 | 244,162 (1.68) |
2011 | 27,442 | 198,552 (1.55) |
2010 | 19,185 | 229,329 (1.98) |
2009 | 20,629 | 215,975 (2.07) |
2008 | 29,682 | 260,087 (1.96) |
2007 | 40,496 | 329,177 (2.07) |
2006 | 40,337 | 322,434 (1.95) |
2005 | 23,340 | 302,895 (2.04) |
2004 | 21,122 | 287,927 (1.70) |
2003 | 18,318 | 259,755 (1.56) |
2002 | 19,435 | 234,109 (1.40) |
2001 | 21,357 | 223,983 (1.30) |
2000 | 17,214 | 206,037 (1.20) |
1999 | 15,800 | 185,890 (1.10) |
1998 | 6,938 | 156,260 (1.00) |
1997 | 3,408 | 97,563 (0.60) |
1996 | 81,529 (0.50) | |
1995 | 83,616 (0.50) | |
1994 | 91,554 (0.58) | |
1993 | 99,280 (0.64) | |
1992 | 92,890 (0.69) | |
1991 | 71,206 (0.58) | |
1990 | 63,534 (0.46) | |
1989 | 16,302 (0.11) | |
1988 | 0 (0.00) |
Financial performance
Financial data of Lexus operations are not disclosed publicly.
Automobiles
Vehicle lineup
The global Lexus lineup features sedans of different size classes, including the compact IS model, mid-size ES and GS models, and the full-size LS. The 2-door coupe range consists of the RC and the LC. Former convertibles include the SC and IS C models. Sport-utility vehicles range in size from the subcompact UX, compact NX and mid-size RX crossovers, to the full-size GX and LX. Hybrid models include the CT hatchback, the discontinued HS, and variants of the IS, ES, GS, LS, RC, LC, UX, NX, RX and LM.[170] The F marque line formerly produced a variant of the IS, GS and the LFA and currently produces a variant of the RC coupe.[170]
F marque
Lexus produces its highest-performance models under its F marque division.[101] The name refers to Flagship and Fuji Speedway in Japan, whose first corner, 27R, inspired the shape of the "F" emblem.[171] F marque models are developed by the Lexus Vehicle Performance Development Division.[172] The first F marque model, the IS F, went on sale in 2007, followed by the LFA in 2009.[115] 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.[102] The F-Sport trim level commonly includes cosmetic upgrades to the exterior and interior, and in some vehicles, mechanical upgrades such as an adaptive variable suspension.[173][174] F-Sport succeeded an earlier in-house tuning effort, the TRD-based L-Tuned, which had offered performance packages on the IS and GS sedans in the early 2000s (decade).[175][176]
Additions to the performance F Sport marque include the Lexus RC F Sport and Lexus GS F Sport and Lexus LS F Sport.[177]
Model nomenclature
Lexus production models are named
Design and technology
Lexus design has traditionally placed an emphasis on targeting specific vehicle development standards.
Vehicle cabins have incorporated
In 1989, Lexus became among the first premium car marques to equip models with premium audio systems, in partnership with stereo firm
In 2006, Lexus incorporated the first production eight-speed
Safety features on Lexus models range from stability and handling programs (
Production models in development have included convertibles, crossovers, and dedicated hybrids.
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.[210][211] L-finesse is represented by three Japanese kanji characters which translate as "Intriguing Elegance, Incisive Simplicity, and Seamless Anticipation".[211] Design characteristics, including a fastback profile, lower-set grille,[212] and the use of both convex and concave surfaces,[212] are derived from Japanese cultural motifs (e.g. the phrase kirikaeshi in arrowhead shapes).[213] While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars,[212] automotive design analyses described L-finesse as adding a distinctive nature and embrace of Japanese design identity.[210][211]
Opinions varied for L-finesse's debut on the GS;
Production
Assembly plants
The first Lexus vehicles were manufactured in Toyota's
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.[219] 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.).[220] In January 2020, Toyota Kirloskar Motor of India started assembling the ES sedan in its Bidadi plant.
Relative to Toyota models, Lexus vehicles are built according to different
Plant | Owner | Location | Country | Model(s) |
---|---|---|---|---|
Tahara | Toyota Motor Corp. | Tahara, Aichi Prefecture | Japan | LS, GS, IS, GX, RC, NX |
Tsutsumi | Toyota Motor Corp. | Toyota City, Aichi Prefecture | ES | |
Kokura | Toyota Motor Kyushu, Inc. | Kitakyushu, Fukuoka Prefecture | CT, HS, RX | |
Miyata | Toyota Motor Kyushu, Inc. | Miyawaka, Fukuoka Prefecture |
ES, IS, RX, NX, UX | |
Motomachi | Toyota Motor Corp. | Toyota City, Aichi Prefecture | LFA, LC | |
Higashi Fuji | Kanto Auto Works, Ltd. | Susono, Shizuoka Prefecture |
SC | |
Yoshiwara | Toyota Auto Body Corp. | Toyota City, Aichi Prefecture | LX | |
Cambridge | Toyota Motor Manufacturing Canada | Cambridge, Ontario | Canada | RX, RXh, NX |
Georgetown | Toyota Motor Manufacturing Kentucky | Georgetown, Kentucky | United States | ES |
Bidadi | Toyota Kirloskar Motor | Bidadi, Karnataka | India | ES |
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.[227][228]
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
Since 2002, Lexus has scored consecutive top ratings in the
Motorsport
Lexus first entered the motorsport arena in 1999 when its racing unit, Team Lexus,
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,[252] and drivers André Lotterer and Juichi Wakisaka raced the SC 430 to capture the GT500 championship for that year.[253] In 2007, another SC 430 won the GT500 opening round race.[254] 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.[255] Lexus Canada also entered the GS 450h in 2007's Targa Newfoundland event.[256] In 2009, Lexus Super GT Team SC 430 and IS 350 racers won the GT500 and GT300 championships, respectively.[257]
Lexus' participation in
The
For the
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),[36][266] and accompanied by vehicles that performed unusual stunts onscreen.[267] The first decade of Lexus commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless", "pursuit", and "perfection",[268] while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera.[267] Examples included the champagne glass "Balance" (1989) and rolling "Ball Bearing" (1992).[267]
In the 2000s (decade), commercials included descriptions of features,[269] or a narration of the events onscreen, and were often targeted at the marque's German competitors.[270] An annual "December to Remember" campaign featured scenes of family members surprising loved ones with the gift of a new Lexus.[271] 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.[272]
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.[12][40] A reputation for dependability, bolstered by reliability surveys, also became a primary factor in attracting new customers from rival premium makes.[273][274] Lexus has since grown to command higher price premiums than rival Japanese makes,[275] with new models further increasing in price and reaching the more than $100,000 ultra-luxury category long dominated by rival European marques.[276][277][278]
Automotive analysts have also noted Lexus' relative newcomer status as a marketing challenge for the brand,[279] although some have debated the requirement of a long history.[275][280] European rivals have marketed their decades of heritage and pedigree,[281] whereas Lexus' reputation rests primarily upon its perceived quality and shared history with parent company Toyota.[275] Several analysts have stated that Lexus will have to develop its own heritage over time by highlighting technological innovations and producing substantial products.[100][279]
Lexus' marketing efforts have extended to sporting and charity event sponsorships, including the
Since 2008, Lexus has run the video website L Studio. Shows on L Studio include Web Therapy.[286]
Lexus unveiled its new "Experience Amazing" tagline in the U.S. in a 60-second advertisement at the February 2017 Super Bowl LI.[287] The new tagline replaced Lexus's previous slogans, "Amazing in Motion" and "The Pursuit of Perfection".[288]
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.[289]
Lexus slogans
- The Relentless Pursuit of Perfection (1989–2011)
- The Pursuit of Perfection (2010–2016)
- Amazing in Motion (2013–2016)
- Experience Amazing (2017–present)
See also
- The Championship by Lexus
- Slide (hoverboard)
References
Notes
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- ^ Long 2001, pp. 41–42
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- ^ a b Long 2001, p. 51
- ^ Dawson 2004, p. 75
- ^ Long 2001, p. 57
- ^ Long 2001, p. 73
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Bibliography
- Dawson, Chester (2004). Lexus: The Relentless Pursuit. Hoboken, NJ: Jon Wiley & Sons. ISBN 0-470-82110-8.
- Long, Brian (2001). Lexus: The Challenge to Create the Finest Automobile. Dorchester, Dorset, UK: Veloce Publishing. ISBN 1-901295-81-8.
- Mahler, Jonathan (2004). The Lexus Story: The Behind the Scenes Story of the #1 Automotive Luxury Brand in America. New York: Melcher Media. ISBN 0-9717935-7-3.
- May, Matthew E. (2006). The Elegant Solution: Toyota's Formula for Mastering Innovation. Foreword by Kevin Roberts. New York: Free Press. LCCN 2006048411.
- Morgan, James M.; Liker, Jeffrey K. (2006). The Toyota Product Development System: Integrating People, Process and Technology. New York: Productive Press. ISBN 1-56327-282-2.
External links
- Official website
- Lexus at Curlie