In the 1980s, Japanese government-imposed voluntary export restraints for the U.S. market made exporting more expensive cars to the U.S. more profitable for Japanese automakers. In 1983, Toyota chairman Eiji Toyoda challenged the company to build the world's best car, initiating the F1 project to expand Toyota’s product line into the premium segment. This followed the Toyota Supra and Mark II, both rear-wheel drive cars with inline-six engines, and the conservatively styled, domestically-built Toyota Century limousine.
The F1 project culminated in the Lexus LS 400, debuting in January 1989 at the North American International Auto Show in Detroit, with official sales beginning in September of the same year. The LS 400 featured a new 4.0 L V8 gasoline engine and rear-wheel drive. Simultaneously, Lexus released the ES 250, a rebadged version of the Japanese market Toyota Camry Prominent/Toyota Vista. The launch was accompanied by a multimillion-dollar advertising campaign.
The LS 400 was praised for its quietness, well-appointed interior, engine performance, build quality, and fuel economy. In 1990, Lexus sold 63,594 LS 400 and ES 250 sedans in the U.S., and began limited exports to the United Kingdom, Switzerland, Canada, and Australia. By 1991, Lexus had become the top-selling premium car import in the U.S., with sales reaching 71,206 vehicles, and ranked highest in J.D. Power and Associates’ studies on initial vehicle quality, customer satisfaction, and sales satisfaction. In 1993, Lexus launched the GS 300 sports sedan, based on the Toyota Aristo.
In December 1989, Lexus initiated a voluntary recall of all 8,000 LS 400s due to defective wiring and an overheated brake light. The company responded by offering a 20-day operation to replace the parts on affected vehicles, including technicians picking up, repairing, and returning cars to customers free of charge, and flying personnel and renting garage space for owners in remote locations. This response garnered media coverage and established the marque's early reputation for customer service.
In 2005, Lexus completed an organizational separation from Toyota, establishing dedicated design, engineering, training, and manufacturing centers. This coincided with Lexus’ launch in its home market of Japan and an expanded global launch in markets such as China. Lexus also debuted the RX 400h in 2004, the first luxury-branded production hybrid SUV, utilizing Toyota’s Hybrid Synergy Drive system. By 2006, Lexus sales reached an all-time high of 518,000 vehicles.
Lexus entered motorsport in 1999 with Team Lexus fielding GS 400 race vehicles in the Motorola Cup North American Street Stock Championship. In 2006, Lexus entered the Super GT series in Japan with the SC 430, winning the GT500 championship. Lexus also participated in endurance racing, including the Rolex 24 Hours of Daytona, winning the event three consecutive times from 2006 to 2008.
Lexus entered Interbrand's list of the Top 100 Global Brands for the first time in 2006, with an estimated brand value of approximately $3 billion annually. In 2009, Interbrand ranked Lexus as Japan's seventh largest brand. Lexus continues to receive awards for vehicle quality and customer satisfaction, and sponsors sporting and charity events, including the U.S. Open tennis Grand Slam and the United States Golf Association’s U.S. Open.
Gallery · 2 related images
