History of the Lexus Part 1

In a meeting with top management, strategists, and engineers in August 1983, Toyota Motor Corporation Chairman,EijiToyoda posed a question to the group, "Can we create a luxury car to challenge the very best?"Their response was Lexus, starting with the LS 400 flagship sedan. From 1984-1988, the code name "F1"was used to refer to the new luxury model being designed. "F"for flagship and "1"for a sedan of the highest order. The designation LS 400 was revealedin November 1988 and stands for Luxury Sedan with a 4.0-liter engine. In its first month available to the public 3,439 units were sold outselling the Mercedes-Benz 300, 400 & 500 Series, S-class, 190, combined and the BMW 5,6, & 7 Series and 300 Series combined.

•Designing the LS 400 required 450 running prototypes representing the work of 24 engineering teams, 1,400 engineers, 2,300 technicians, and 220 support workers.

•A 1990 Consumer Reportscomparison test of LS 400, Infiniti Q45, BMW 535i, and Lincoln Continental noted, "LS 400 was simply the finest car the magazine has ever tested."

•In 1990 the average LS 400 buyer had a median income of $160,000, was college educated, with 70% having attended post-graduate school. One-fifth of the owners listed their job title as President/CEO.

　

Toyota’s decision to enter the luxury market came as American buyers ofits most popular vehicles were maturing and growing more affluent. Most upscale vehicles made by Toyota were not offered in the United States, and the top of the line Cressida could not compete with luxury European and American models.

Chief EngineerShoiji Jimboand Ichiro Suzuki supervised the initial development of the LS. To better understand the needs and habits of the American luxury car market, Yuki Togo, President and Chief Executive Officer of TMS,USA urgedJimboto lead a study team that traveled America, conducting focus groups and interviewing dealers. Another team moved from Japan to Laguna Beach, CA to explore affluent lifestyles.

To name its vehicles, Lexus decided to use an alphanumeric designation in the tradition of European luxury makers. This focused name recognition on the Lexus brand rather then the individual model, thereby avoiding the challenge faced by Honda’s Acura division, which was less well known then its flagship Legend sedan.