Introduction:
The Lexus is more of the luxury vehicle segment of the Japanese automobile creator, Toyota. The brand is marketed in over 90 countries and other territories globally. It is Japan’s most selling brand of luxurious cars. Lexus has ranked among the then of the largest Japanese global businesses in stock market value. The Lexus is mainly headquartered in the city of Nagoya, Japan. Operational heads are located in Belgium and Plano, Texas in the United States of America.
It got created around the same time frame as other Japanese competitors the likes of Honda and Nissan generally. They took their Acura and Infiniti luxury divisions the same way, The Lexus originated from a corporate program to develop a high-end sedan named F1, which started in 1983 and resulted in the launch of the Lexus LS back in 1989. Consequently, the segment added the sedan, coupé, convertible, and SUV other models.
The Lexus division never existed as a local brand at home until the year 2005 when all vehicles that got marketed internationally were known as Lexus from the year 1989 to 2005 mostly and were launched in Japan under the banner Toyota and a well-known model’s identity. However, in 2005, a hybrid version of the RX merger started and additional hybrid variants later joined the segment’s line. The Lexus launched its famous branded performance unit in 2007 with the launch of the IS F sports-oriented sedan that was then followed by the LFA supercar unit back in 2009.
These Lexus motors are of course produced in Japan, with manufacturing roughly based in the Chūbu and Kyūshū regions directly that’s is particular at Toyota’s plantations. The assembly line of the first Lexus operated outside the country itself, the Canadian-made RX 330 began in the following 2003. After a corporate restructuring from 2001 to 2005, Lexus began making its own designs, engineering sector, and manufacturing units.
Ever since the early 2000s, Lexus has promoted sales outside its largest corporate market, the United States of America. The unit launched its dealerships mostly in Japan’s domestic circle around the year 2005 and became the initial Japanese high-end car brand to launch in its developmental cycle. The Lexus brand has since started in Southeast Asia along with Latin America, Europe, and other regions and has promoted its hybrid vehicles in many other markets too.
History of Lexus:
The brand Lexus was created at the same time as Japanese competitors Nissan and Honda namely developed their own luxurious cars like Infiniti and Acura brands. Japan’s government implemented voluntary export restraints for America’s market so it was advantageous for Japanese automobile makers to export more expensive cars to America.
However, in 1983, Toyota’s chairman named Eiji Toyoda gave the challenge to build the best automobile. The project which is code-named F1 created the Lexus LS 400 to fall in Toyota’s product line in the high-end unit market. The F1 project then continued with the Toyota Supra supercar and the premium Toyota Mark II variants. Both the Supra and Mark II cars were back-wheel motors with a powerful engine named 7M-GE or 7M-GTE six-engine prototype. The biggest sedan that Toyota built at the time was a production limited, famously 1960s-vintage-motor, Toyota Century, a domestic, custom-designed limousine, and a V8-powered variant which was then followed by the six-engine-motor named Toyota Crown as more of a premium sedan. The turn of the century was then conservatively styled for iconic Japan’s market and the Crown was not as perfect for export after its restyling in the year 1982 as it is. The F1 designers saw their new sedan in global markets and started the development of a new V8-powered engine.
The Japanese makers exported more pricey variants in the 1980s because of voluntary export restraints negotiated by Japan’s government and U.S. trade delegates that restrained the mainstreamed car sales. In about the year 1986, Honda released its Acura brand in America, dwindling with Toyota’s plans for a luxury unit. The first Acura model was an exported version of the Honda Legend car and itself released in Japan in the year 1985 as a competitor to the Toyota Crown division.
The Toyota researchers gave a visit to America. In around May 1985 to conduct focus groups and market research on the luxury customer base. During this time around, many F1 designers rented a space in Laguna Beach, California to study the lifestyles and preferences of the American upper-class customers. There then, F1 engineering divisions conducted prototype tests on areas starting from the German autobahn to American roads. Toyota’s market research and development comprehended that a separate brand and its sales channel were direly needed to launch its new sedan line-up and plans were initially made to start a new series of dealerships in America’s marketplace.
The financial performances:
The financial records of Lexus operations do not open publicly. But some automotive analysts estimated that the Lexus unit contributes almost a disproportionate stock of Toyota’s profits as a whole, based on its limited production and sales percentile. The Interviews and chats with retired division officers indicate that depending on the percentile of sales, vehicle product development structures, and exchange rates, Lexus sales have accounted for more than a half of Toyota’s annual American profit in many years. The divisional heads at that time employed pricing strategies that were aimed at sustaining profitable grabs than sales capacity with historically fewer pricing awards than competitor brands or other reasons. However, in 2006, The Lexus tried entering the Interbrand’s list of the 100 Global Brands for the first time ever with an estimated brand value of almost if not equal $3 billion per annum. However, in the year 2009, Inter-brand was the first to rank Lexus amongst Japan’s seventh-largest brands ever between Panasonic and Nissan, based on the earnings and market to-share value.
