Why did Toyota call it Lexus?
Toyota, the Japanese automotive giant, launched its luxury vehicle division Lexus in 1989. The decision to create a separate brand for its high-end models was a strategic move that has paid off handsomely for the company over the years.
The Birth of Lexus
In the 1980s, Toyota recognized the growing demand for luxury vehicles in the United States, a market dominated by established brands like Mercedes-Benz, BMW, and Cadillac. Toyota decided to develop a new line of premium cars that could compete with these established luxury marques. The project, codenamed "F1," was a closely guarded secret within the company, with only a small team of engineers and designers working on it.
The name "Lexus" was carefully chosen to evoke a sense of exclusivity and sophistication. According to Toyota, the name was derived from the word "lexicon," which means a collection of words, and was intended to convey the idea of a "new language of luxury."
Reasons for the Lexus Brand
There were several key reasons why Toyota decided to create the Lexus brand, rather than simply selling its high-end models under the Toyota name:
- Differentiation: Lexus allowed Toyota to create a distinct identity for its luxury vehicles, setting them apart from the more mainstream Toyota models.
- Branding and Marketing: Lexus could be marketed and promoted as a premium brand, with its own unique design, features, and customer experience.
- Pricing and Positioning: Lexus vehicles could be priced and positioned as luxury products, without the constraints of the Toyota brand.
- Global Expansion: Lexus provided Toyota with a way to expand its luxury offerings globally, as the brand could be more easily recognized and accepted in international markets.
The decision to create Lexus has proven to be a highly successful strategy for Toyota, as the brand has become one of the world's leading luxury automotive marques, competing directly with the likes of Mercedes-Benz, BMW, and Audi.
Is a Lexus basically a Toyota?
Toyota does own the Lexus lineup of Lexus car models and SUVs, but the two brands operate independently with headquarters in separate cities. Toyota is headquartered in Toyota City, while Lexus remains in Nagoya. So who makes Lexus cars?
Does a Lexus have a Toyota engine?
Although Lexus vehicles' interiors and exteriors differ from Toyotas', they almost always have a Toyota engine under the hood. Still, this is great news for Lexus drivers because Toyota engines are one of the most reliable ones in existence.
Is Lexus still owned by Toyota?
Is Lexus owned by Toyota? Yup! Lexus is owned by the Toyota Motor Corporation and is headquartered in Japan alongside Toyota. Lexus models were primarily built in Japan until 2003, when the Lexus RX 330 was built in Ontario.
Is Lexus the higher end of Toyota?
The Lexus brand is the luxury division of the Toyota Motor Corporation, a Japanese automaker. Lexus vehicles were initially developed for the American market and debuted there to the enthusiasm of drivers before eventually being sold in other markets around the world.
