When did Toyota buy out Lexus?
Toyota did not buy out Lexus. Lexus was created by Toyota in the 1980s as a dedicated luxury division, with the first models launching in 1989.
The origin of Lexus within Toyota
In the pursuit of a premium, globally competitive luxury brand, Toyota launched an internal project in the early 1980s that would eventually become Lexus. Rather than acquiring an existing luxury company, Toyota built a new brand from the ground up to challenge the world’s top luxury automakers.
Key milestones in Lexus' creation
Here is a concise timeline of the major steps that led to the birth and evolution of the Lexus brand.
- 1983: Toyota launches Project F1 to develop a global premium brand capable of rivaling Mercedes-Benz and BMW.
- 1984: The Lexus name is trademarked in multiple markets as the brand identity is prepared for market introduction.
- 1988: Lexus International Co., Ltd. is established to manage design, engineering, and marketing for the brand.
- 1989: The Lexus brand is launched with the LS 400 and ES 250, marking its entry into global markets.
- 1990s–2000s: Lexus expands its model lineup and global presence, reinforcing its luxury positioning.
The milestones illustrate that Lexus originated as an internal Toyota initiative rather than a separate company that Toyota subsequently acquired. Since its 1989 launch, Lexus has grown into Toyota’s global luxury marque.
Clarifying a common misconception
Some readers worry that Toyota purchased an existing company named Lexus. In reality, Toyota created Lexus as a brand and division within its own corporate structure. Over time, Lexus operated as a distinct brand with its own sales networks and product lineup, but there was no acquisition of an independent company.
Summary
In summary, Toyota did not buy out Lexus. Lexus was established by Toyota in the 1980s as a dedicated luxury division, with its first models introduced in 1989, and it has since evolved into a global luxury marque under Toyota’s umbrella.
