Lexus History

The origins of Lexus were in a secret meeting held in 1983 by Eiji Toyoda, chairman of Toyota, who was interested in developing a luxury car brand to extend the reach of the Toyota company. The meeting sparked the top secret F1 or Flagship 1 project, which ultimately resulted in the Lexus LS 400.

The opportunity for Japanese companies like Toyota to export luxury vehicles arose due to the restrictions on the export of mainstream cars which had been agreed upon by both American and Japanese manufacturers during the 1980s. Other Japanese manufacturers had begun to create their own luxury divisions and Toyota had already created two successful sports cars, the Cressida and Supra.

The F1 project involved market research into the lifestyles of the wealthy in California, during 1985. This research determined that the best option for Toyota was to develop a separate luxury brand. Lexus was the result. The LS 400 was introduced in 1989, with a design that made it clear that this was a major departure from the Toyota brand. However, later the same year, Lexus had to recall its LS 400 cars due to problems with the wiring and brake lights. All of the cars were repaired over a 20 day period, helping to counteract the negative effects of the technical problems with a positive reputation for its superb customer service.

During the 1990s, Lexus built on its early success by beginning exports to more countries and by expanding the brand. The SC 400, the first Lexus sports coupe, was introduced in 1991, in the same year as the ES 300 was launched. By the end of 1991, Lexus had become the top selling brand of premium cars imported to the US.

The GS line was introduced in 1993. Lexus also became one of the first brands to introduce a certified pre-owned plan. The LS 400 was introduced in 1994, as a completely redesigned version of the flagship Lexus model. During 1995, the US government proposed initiating a 100 percent tariff on luxury Japanese imports, excepting SUVs. However, these tariffs did not come into play, and normal sales resumed by the end of 1995. The first Lexus SUV, the LX 450, was introduced in 1996. Its launch had been sped up during the discussions of the proposed US import tariff. A new crossover SUV, the RX 300, was launched in 1998, along with the GS 300 and 400. Lexus sold its millionth vehicle in the US in 1999.

Lexus continued to grow and introduce new models during the 2000s, with new vehicles including the entry level IS 300 sedan and the convertible SC 430. The two millionth US sale took place in 2004. In 2005, Lexus introduced the first luxury hybrid SUV, the RX 400h.

Lexus separated itself organizationally from its parent company, Toyota, in 2005, becoming an independent organization with its own design, engineering and manufacturing centers. This separation was intended to coincide with the launch of the Lexus brand in Japan, as well as a global expansion. In 2007, Lexus created the F marque division, to produce luxury, racing inspired versions of its cars. The first models were the IS F and LF-A supercar, which were introduced in 2007.

Lexus, along with many other luxury brands, was hit hard by the global recession towards the end of the decade, when sales fell, although it began showing signs of recovery in 2010.