| LEXUS ANALYSIS | |
The 1989 LS400 was Toyota’s definitive statement to the automobile world- on what a Luxury car should be. Even before Lexus had a corporate name, the other car manufacturers and automobile press anxiously awaited the product. They wanted to see how Toyota was going to enter the Luxury Import field.
Most people were not aware that Toyota had a history and experience in building luxury cars.
In Japan, Toyota has been selling luxury vehicles all along. The Toyota Crown series had undergone several generations of refinement, incorporating luxury features that were considered de rigueur for luxury automobiles. Add to these, options that were unheard of and unavailable from other manufacturers- ice box, extended chassis, oscillating vents, parking assist, and numerous gadgets thoughtfully Japanese, that had no place or were unavailable in American or European luxury models.
Very few were even aware of the Toyota Century. A car fit for Japanese nobility (as the Rolls-Royce was for the British Aristocracy), for Statesmen (as Mercedes was for Presidents, and dictators.), or Captains of industry (as all other Luxury car manufacturers try to cater to). This car was not sold to anybody/everybody- you had to wait for a Toyota invitation. Buyers had to be acceptable to Toyota! Imagine a fully optioned Mercedes S-class with the limited availability of a Rolls-Royce Phantom- that was the Century.
There is no car manufacturer with the model range Toyota has. And for Toyota, Lexus was more a marketing exercise rather than a new manufacturing attempt. The brand name Lexus has become part of automobile history. The LS400 has joined the Toyota 2000GT and Toyota Corolla as Toyota’s 3rd Milestone car- important car models in the evolution of the Motor Car.
When the first LS was introduced, the competitive cars targeted were the Jaguar XJ, the Cadillac Fleetwood, and the S-class (mid-model 420SEL). Toyota made sure in more than 180 measurable test parameters that the LS was better. From exhaust note, to wood finish, to suspension dampening, to mechanical vibrations, and even AC fan blower noise- all aspects were covered and srpassed. testing was done from California to Florida, a northern route East and southern route West. (Toyota Technical Center even borrowed our Toyota Soarer).
Toyota diehards had an uneasy feeling when the LS400 and the Infiniti Q45 were introduced. The Lexus U.S. Flagship was short in specifications when compared to the Q45. Despite the initial stir with the automobile press and technical specification junkies- Lexus still delivered the Right Product. Of course Nissan fumbled- and Lexus marketing took off.
Lexus was primarily targeted at Mercedes. In the ensuing years, the LS caused Mercedes to downspec the S-class (and its complete model line) to reduce the price differences and meet the value aspect. Even the new 3rd generation LS 430, continued to play its hero role as the underdog, by not trying to outdo Mercedes feature for feature in the current S-class. An S-Class killer, Lexus could easily have produced but Lexus remains the master in marketing- why be the top dog from which the only way is down?
Mercedes has had to raise the standard with the Maybach project. But then again remember that the current generation Toyota Century awaits it’s global introduction with the V12 engine and other options that Mercedes has not used in their current production cars. The ULTIMATE Lexus is still a Toyota. Toyota has that angle easily covered.
The creation of the Lexus Divison of Toyota has succeeded in building a very loyal and inspired customer base. And what happens when you get some people excited? You soon have a race.
All great car brands have to excel in Motorsports. Rolls Royce, Bentley, Buggati, Mercedes….all had to prove mechanical superiority to the motor world. Lexus sights are now set on PERFORMANCE. The arrival of the U.S. IS 300 is the first effort. For once the U.S. gets the best model of the IS, all other markets have the 2000cc versions.
The awaited entry of Lexus in this marketing niche, with BMW M models and Mercedes AMG versions as the definitive models to emulate- has Lexus owners in a state of frenzy. They know that there are available versions of the Lexus models that can out-perform BMW M series and Mercedes AMG, or come very close.
Lexus corporate is examining this new niche with the same caution and marketing research that outplayed Acura and Infiniti; gained parity with the European Marques with one model- the LS 400. Lexus. Delivering the Right Product at the Right Time has always been the Lexus hallmark.
For all the investment and goodwill Lexus has structured in its image and marketing, they are ultra-conservative in preserving the stature and market position of their product line. The products are available, but the market has to wait. It is a matter of time.
With Toyota entering F1 and with a new Motorsport Marketing Division established (in Japan)- new and exciting cars are in the pipeline. A real Grand Touring Supra, a real Performance Luxury Sedan, our dreams are closer to reality….
The Lexus GS and IS base models are the perfect building blocks. Behind a different grille logo and with different Toyota trunk emblems- Aristo and Altezza, the sporty models are available and waiting off-shore. Toyota in Japan has all the hardware for Lexus models to go heads-up against BMW and Mercedes. Japanese tuners have hardware to surpass model for model, the vaunted BMW M division and all of AMG combined.
(Those who cannot wait, it has to be done behind the Toyota badge. Many are ready to switch badges and do to Lexus models what they had been doing with their Corollas, Celicas, MR2s, and Supras ……. or Lexus will take your L-car away.)
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