Editing Lexus (section)

=== 1980s: The F1 project ===
The Lexus brand was created around the same time as Japanese rivals [[Nissan]] and [[Honda]] developed their [[Infiniti]] and [[Acura]] premium brands. The Japanese government imposed [[voluntary export restraints]] for the U.S. market, so it was more profitable for Japanese automakers to export more expensive cars to the U.S.

In 1983, Toyota chairman [[Eiji Toyoda]] issued a challenge to build the world's best car.<ref name=m43>{{Harvard citation no brackets|May|2006|p=43}}</ref> The project, code-named F1 ("Flagship One")<ref>{{Harvard citation no brackets|May|2006|p=42}}</ref> developed the [[Lexus LS|Lexus LS 400]] to expand Toyota's product line in the premium segment.<ref name=pr>{{cite web|url=http://www.autolinedetroit.tv/autoline/watch.php?stream=927|title=How Lexus Was Successful in the U.S. (interview)|year=2006|format=WMV|last=Press|first=Jim|access-date=5 March 2006|publisher=Auto Line Detroit|archive-date=6 February 2006|archive-url=https://web.archive.org/web/20060206080335/http://www.autolinedetroit.tv/autoline/watch.php?stream=927|url-status=live}}</ref> The F1 project followed the [[Toyota Supra]] sports car and the premium [[Toyota Mark II]] models.<ref>{{Cite news |last=White |first=John |title=New Route for Japanese Cars: Luxury |newspaper=The Boston Globe |date=23 October 1989}}</ref> Both the Supra and Mark II were [[rear-wheel drive]] cars with a powerful [[Toyota M engine#7M-GE|7M-GE]] or [[Toyota M engine#7M-GTE|7M-GTE]] inline-six engine. The largest sedan Toyota built at the time was the limited-production, 1960s-vintage [[Toyota Century]], a domestic, hand-built limousine, and V8-powered model,<ref name=d6/> followed by the inline-six-engined [[Toyota Crown (S110)|Toyota Crown]] premium sedan.<ref name=d6>{{Harvard citation no brackets|Dawson|2004|pp=6–7, 63}}</ref><ref name=l16>{{Harvard citation no brackets|Long|2001|pp=16–21}}</ref> The Century was conservatively styled for the Japanese market and along with the Crown not slated for export after a restyle in 1982.<ref name=l16/> The F1 designers targeted their new sedan at international markets and began development on a new V8 engine.<ref name=d6/><ref name=l16/>

Japanese manufacturers exported more expensive models in the 1980s due to [[Voluntary Export Restraints|voluntary export restraints]] negotiated by the Japanese government and U.S. trade representatives that restricted mainstream car sales.<ref>{{Harvnb|Dawson|2004|pp=xix, 28}}</ref> In 1986, [[Honda]] launched its [[Acura]] marque in the U.S., influencing Toyota's plans for a luxury division.<ref name=d109>{{Harvnb|Dawson|2004|p=109}}</ref> The initial Acura model was an export version of the [[Honda Legend]], called the [[Acura Legend]], itself launched in Japan in 1985 as a rival to the [[Toyota Crown]], [[Nissan Cedric]]/[[Nissan Gloria|Gloria]] and [[Mazda Luce]].<ref>{{cite web|url=http://www.zakzak.co.jp/society/domestic/news/20100716/dms1007161623011-n2.htm |title=Honda's premium sedan, "Legend" |language=ja |work=Sankei Shimbun |date=16 July 2010 |access-date=31 January 2011 |url-status=dead |archive-url=https://web.archive.org/web/20100723233902/http://www.zakzak.co.jp/society/domestic/news/20100716/dms1007161623011-n2.htm |archive-date=23 July 2010}}</ref> In 1987, [[Nissan Motor Co., Ltd.|Nissan]] unveiled its plans for a premium brand, [[Infiniti]],<ref name=d72>{{Harvnb|Dawson|2004|pp=72, 88, 116}}</ref> and revised its [[Nissan President]] sedan in standard wheelbase form for export as the [[Infiniti Q45]], which it launched in 1990.<ref>{{cite web|url=http://gazoo.com/meishakan/meisha/shousai.asp?R_ID=5498&ex_spec=shousai |title=Profile: 1990 Nissan President |language=ja |publisher=Gazoo |access-date=31 January 2011 |year=2011 |url-status=dead |archive-url=https://web.archive.org/web/20040811183017/http://gazoo.com/meishakan/meisha/shousai.asp?R_ID=5498&ex_spec=shousai |archive-date=11 August 2004}}</ref> [[Mazda]] began selling the Luce as the [[Mazda 929]] in North America in 1988 and later began plans to develop an upscale marque to be called [[Amati Cars|Amati]], but its plans did not come to fruition.<ref name=d72/>

Toyota researchers visited the U.S. in May 1985 to conduct [[focus group]]s and [[market research]] on luxury consumers.<ref name=d35>{{Harvnb|Dawson|2004|pp=35, 41}}</ref> During that time, several F1 designers rented a home in [[Laguna Beach, California]], to observe the lifestyles and tastes of [[American upper class]] consumers.<ref name=d35/> Meanwhile, F1 engineering teams conducted prototype testing on locations ranging from the German [[autobahn]] to U.S. roads.<ref name=ed>{{cite web|url=http://www.edmunds.com/lexus/|title=Edmunds.com Lexus Overview|publisher=Edmunds.com|access-date=23 May 2011|archive-date=24 December 2020|archive-url=https://web.archive.org/web/20201224032742/https://www.edmunds.com/lexus/|url-status=live}}</ref> Toyota's market research concluded that a separate [[brand name|brand]] and sales channel were needed to present its new sedan, and plans were made to develop a new network of dealerships in the U.S. market.<ref>{{Harvnb|Morgan|Liker|2006|p=121}}</ref>

==== Brand development ====
In 1986, Toyota's longtime advertising agency [[Saatchi & Saatchi]] formed a specialized unit, [[Team One (advertising agency)|Team One]], to handle marketing for the new brand.<ref name=d109/> Image consulting firm [[Lippincott (brand consultancy)|Lippincott & Margulies]] was hired to develop a list of 219 prospective names; Vectre, Verone, Chaparel, Calibre and Alexis were chosen as top candidates.<ref name=m57>{{Harvnb|Mahler|2004|pp=56–57}}</ref> While Alexis quickly became the front runner, concerns were raised that the name applied to people more than cars (being associated with the [[Alexis Carrington]] character on the popular 1980s prime time drama [[Dynasty (1981 TV series)|''Dynasty'']]).<ref name=m57/><ref name=d111/> As a result, the first letter was removed and the "i" replaced with a "u" to morph the name to Lexus.<ref name=d111>{{Harvnb|Dawson|2004|pp=111}}</ref>

[[File:Lexus LS 400 UCF10 I.jpg|thumb|1989 [[Lexus LS (XF10)|LS 400]] sedan was the first Lexus model.|alt=Front quarter view of a sedan parked on a street.]]

Theories of the etymology of the Lexus name have suggested it is the combination of the words "luxury" and "elegance",<ref name=flex>{{cite news|url=https://www.forbes.com/facesinthenews/2005/07/26/toyota-lexus-autos-cx_cn_0726autofacescan02.html|title=Watanabe's Toyota Rolls Out Lexus In Japan|date=26 July 2005|work=Forbes|last=Noon|first=Chris|access-date=5 June 2008|archive-date=28 July 2005|archive-url=https://web.archive.org/web/20050728025304/http://www.forbes.com/facesinthenews/2005/07/26/toyota-lexus-autos-cx_cn_0726autofacescan02.html|url-status=dead}}</ref> and that it is an acronym for "luxury exports to the U.S."<ref name=flex/> According to Team One interviews, the brand name has no specific meaning and simply evokes a luxurious and technological image.<ref name=m57/> Prior to the release of the first vehicles, database service [[LexisNexis]] obtained a temporary [[injunction]] forbidding the name Lexus from being used because it might cause product confusion.<ref name=d130>{{Harvnb|Dawson|2004|pp=128–30}}</ref> The injunction threatened to delay the division's launch and marketing efforts.<ref name=d130/> The [[U.S. appeals court]] lifted the injunction, deciding that there was little likelihood of confusion between the two products.<ref name=d130/>

The original Lexus slogan, developed after Team One representatives visited Lexus designers in Japan and noted an obsessive attention to detail, became "The Relentless Pursuit of Perfection."<ref>{{Harvnb|Dawson|2004|pp=113–14}}</ref> Three firms were involved in the final phase of logo development: Saatchi & Saatchi, Molly Designs and Hunter/Korobkin, Inc.<ref>{{cite web|url=http://www.mollydesigns.com/history.html|title=Molly Designs history, Lexus logo design|publisher=Molly Designs|archive-url=https://web.archive.org/web/20080611081501/http://www.mollydesigns.com/history.html |archive-date=11 June 2008}}</ref> The finished logo was a combination of two firms' final designs: the Lexus logo typeface came from Saatchi & Saatchi and the "L" was Hunter/Korobkin, Inc.'s design. According to Toyota, the automaker made some refinements so the logo would be easier to manufacture, rendering it using a mathematical formula.<ref>{{cite web|url=https://huntercommunications.com/success-stories/lexus-logo|title=Symbol of Excellence|website=Hunter Communications|access-date=10 July 2019|archive-date=11 July 2019|archive-url=https://web.archive.org/web/20190711031344/https://huntercommunications.com/success-stories/lexus-logo|url-status=live}}</ref><ref name=m57/> The first teaser ads featuring the Lexus name and logo appeared at the Chicago, Los Angeles and New York auto shows in 1988.<ref>{{Harvnb|Dawson|2004|p=115}}</ref>

==== Launch ====
The F1 project was completed in 1989, involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, approximately 450 prototypes and more than $1 billion in costs.<ref>{{Harvnb|Dawson|2004|p=24}}</ref> The resulting car, the Lexus LS 400, had a design that shared no major elements with previous Toyota vehicles, with a new 4.0 L [[V8 engine|V8]] [[Four-stroke cycle|gasoline engine]] and [[rear-wheel drive]].<ref>{{Harvnb|Dawson|2004|pp=xxi, 69}}</ref><ref name=m31>{{Harvnb|Mahler|2004|p=31}}</ref> The car debuted in January 1989 at the [[North American International Auto Show#1989|North American International Auto Show]] in Detroit<ref name=d72/> and official sales of the vehicle began the following September at a network of 81 new Lexus dealerships in the U.S.<ref>{{Harvnb|May|2006|p=47}}</ref> The LS 400 was sold along with the smaller [[Lexus ES|ES 250]], a [[Rebadging|rebadged]] version of the Japanese market [[Toyota Camry#V20|Toyota Camry Prominent/Toyota Vista]].<ref name=ed/> The launch of Lexus was accompanied by a multimillion-dollar advertising campaign.<ref name=d118>{{Harvnb|Dawson|2004|pp=117–18}}</ref>

[[File:Lexus SC 400 1991.jpg|thumb|left|1991 [[Lexus SC (Z30)|SC 400]] was the third Lexus model and first coupe.|alt=Front quarter view of a coupe.]]

The LS 400 was praised for its quietness, well-appointed and [[ergonomic]] interior, engine performance, build [[Quality (business)|quality]], [[aerodynamics]], [[Fuel economy in automobiles|fuel economy]] and value.<ref name=ed/><ref name=d68>{{Harvnb|Dawson|2004|pp=68–76}}</ref> However, it was criticized by some automobile columnists for derivative styling and a [[suspension (vehicle)|suspension]] regarded as too compromising of handling for ride comfort.<ref name=ed/><ref name=autogenerated2>{{Harvnb|Dawson|2004|pp=72–6}}</ref> In some markets it was priced against mid-size, six-cylinder [[Mercedes-Benz]] and [[BMW]] models.<ref name=com>{{cite web|url=http://www.edmunds.com/insideline/do/Features/articleId=115368 |title=Lexus LS 400, LS 430 and LS 460 Generations: Setting the Standard in the Most Comfortable Way Possible |access-date=8 July 2010 |publisher=Edmunds.com |date=13 March 2003 |archive-url=https://web.archive.org/web/20080705230718/http://www.edmunds.com/insideline/do/Features/articleId%3D115368 |archive-date=5 July 2008 |url-status=dead}}</ref> It was rated by ''[[Car and Driver]]'' magazine as better than the higher-priced Mercedes-Benz [[Mercedes-Benz W126|420 SEL]] and BMW [[BMW E32|735i]] in terms of ride, handling and performance.<ref name=zen>{{cite web|url=http://www.time.com/time/magazine/article/0,9171,971153-1,00.html|title=New Kid on The Dock|date=17 September 1990|access-date=29 April 2007|last=Gwynne|first=S.C.|work=Time Magazine|archive-date=13 October 2007|archive-url=https://web.archive.org/web/20071013114639/http://www.time.com/time/magazine/article/0,9171,971153-1,00.html|url-status=dead}}</ref> The LS 400 also won [[Lexus LS awards list|motoring awards]] from automotive publications including ''[[Automobile Magazine]]'' and ''[[Wheels Magazine]]''.<ref>Davis, David E. 1990 All-Stars, ''Automobile Magazine.'' (1990-01).</ref><ref>{{cite web|url=http://www.wheelsmag.com.au/wheels/site/articleIDs/C40CA2CB6C8577F1CA257285001E7302?open&template=domWheels|archive-url=https://web.archive.org/web/20070927115318/http://www.wheelsmag.com.au/wheels/site/articleIDs/C40CA2CB6C8577F1CA257285001E7302?open&template=domWheels|url-status=dead|archive-date=27 September 2007|title=Wheels' COTY the real McCoy|last=Gable|first=Chris|work=Wheels Magazine|date=4 December 2006|access-date=15 May 2007}}</ref> Lexus quickly established customer loyalty and its debut was generally regarded as a shock to existing luxury marques. BMW's and Mercedes-Benz's U.S. sales figures dropped 29 percent and 19 percent, respectively, with BMW executives accusing Lexus of [[Dumping (pricing policy)|dumping]] in that market, while 35 percent of Lexus buyers traded in a Lincoln or Cadillac.<ref name=zen/>

In December 1989, Lexus initiated a voluntary recall of all 8,000 LS 400s based upon two customer complaints over defective [[wiring]] and an overheated [[brake light]].<ref name=zen/> A 20-day operation to replace the parts on affected vehicles included technicians to pick up, repair and return cars to customers free of charge, and also flying personnel and renting garage space for owners in remote locations.<ref name=zen/> This response was covered in media publications and helped establish the marque's early reputation for [[customer service]].<ref>{{cite web |url=https://www.autonews.com/article/20060327/SUB/60322012/how-a-recall-earned-lexus-a-top-reputation |title=How a recall earned Lexus a top reputation |first1=Chris |last1=Denove |first2=James |last2=Power |work=Automotive News |location=US |date=27 March 2006 |access-date=19 February 2009 |archive-date=27 May 2021 |archive-url=https://web.archive.org/web/20210527001953/https://www.autonews.com/article/20060327/SUB/60322012/how-a-recall-earned-lexus-a-top-reputation |url-status=live }}</ref><ref>{{Harvnb|Long|2001|pp=38–39}}</ref>

By the end of 1989, a total of 16,392 LS 400 and ES 250 sedans were sold in the four months following the U.S. launch.<ref>{{Harvnb|Long|2001|p=36}}</ref> Although sales had begun at a slower pace than expected, the final tally matched the division's target of 16,000 units for that year.<ref name=dw125>{{Harvnb|Dawson|2004|pp=125, 141}}</ref> Following initial models, plans called for the addition of a sports coupe along with a redesigned ES sedan.<ref name=dw141/>