Lexus History: The Relentless Pursuit of Perfection

Perfection to the point of obsession, here’s a quick look back at Lexus history and the automaker’s foundations.

The best car in the world. A concept that has eluded the minds of designers and engineers alike since the dawn of the automobile. Plenty of vehicles throughout history have claimed to be perfect for a specific audience, a certain timeframe, or a specialized task. But very few designers set out with the directive to create the world’s best car. Of course, that didn’t stop Eiji Toyoda from giving it a shot. Like anything in history that can be called “the best,” it didn’t occur overnight. Toyoda would sink countless hours and effort into his dream of perfection – a dream which would ultimately bear the name, Lexus.

Looking to New Horizons

The inspiration behind Lexus actually relates in part to the development of the Nissan Fairlady. The reason why is because of the market the Fairlady was intended for – export. With an engine and body size too large to fit within Japan’s national tax bracket, this was one of the first Japanese cars built en-masse specifically for the US and European domestic markets. And by the mid-1980s, the Z-car had thoroughly established itself as a sporty, practical vehicle within those regions. Toyota’s recourse to this success was the Mk. I Supra, introduced in April 1978. And while the market for nimble sports cars was strong, there was one market wide-open for a Japanese contender: a luxury saloon.

A brief history anecdote. In the early 1980s, Japan and the US agreed upon a voluntary export restraint. This raised the price of every Japanese vehicle entering the US in 1981 by $733. And while this wouldn’t last forever, it also was a significant markup for Supras, Celicas, and Corollas of the time. In fact, Toyota didn’t have any presence within the US as a luxury automaker at all in the 1980s. They had the Crown and, more boldly, the Century, but neither of these vehicles was exported to the US. Altering public perception of their image as a maker of practical and sporty vehicles would prove challenging. So instead, Eiji Toyoda opted for another option: create a new marque from scratch.

Envisioning the Perfect Car

Focus groups traveled to the US beginning in 1985. Their primary directive was collecting data from the California upper-class. Living and working within Malibu, they drafted what would become known as “Project F1,” or “Flagship Number One.” And by early 1986, the name “Lexus” was finalized. Truthfully, the name held no special meaning to the engineers, but they felt it exuded a luxurious, cutting-edge image. With that, outlines for the ideal export luxury sedan were solidly in place. The vehicle’s overall design began to take shape. 

Later on that year, Nissan and Honda would follow suit, each of them creating the Infiniti and Acura marques, respectively. Due to the export taxes, it was seen as more financially viable to export a few expensive vehicles rather than a lot of inexpensive ones. Therefore, luxury cars would quickly become the order of the day in the Japanese import market. But there’s something to be said about pole position affording a greater chance of success. In this case, Lexus seemed poised to create one for the history books. The real question was, of course: could they actually deliver?

Japanese Precision Meets American Luxury

“Project F1” was revised to the point of obsession, truly reflecting the company’s new slogan, “Kanpeki no shitsuyōna tsuikyū,” or, “The Relentless Pursuit of Perfection.” And finally, having spent over US$1 billion by 1987, the design was finalized. The new vehicle would launch in 1989 at the North American Auto Show, called the Lexus LS 400. Rather than major technological leaps, the car instead found itself with quite literally hundreds of minor improvements over competitors’ luxury cars. Let’s take a look at just a small fraction of what this vehicle introduced to the market.

On the interior, we have an auto-tilt steering wheel with SRS airbags, partly holo-projected gauge cluster, hands-free telephone, memory storage for the driver’s seat adjustment… It’s all far too much to list in one shot. No detail escaped the designers’ obsession on the exterior, either. From the sandwich sound-dampening steel body panels to the rubber body mounts, everything was in service of creating the ultimate luxury environment for the money. And speaking of the money, this was a vehicle orders of magnitude less expensive than competitors. At just $35,000 base price (which is still quite substantial for the time), it halved the MSRP of the base Mercedes 560, for example.

Looking Ahead

Lexus would quickly make a name for itself alongside the likes of Cadillac and Mercedes in the US and Europe after the LS 400’s introduction. Not bad for a marque that was effectively only 4 years old at the time. Sales quickly escalated from there, and soon Lexus branched out into the luxury sports and SUV markets. Riffing off their sister cars in Toyota, Lexus soon enjoyed a full lineup of premium-quality vehicles. Everything ranging from the SC 300 (based off the Soarer) to the LX 450 (Land Cruiser) graced dealerships. Lexus had firmly established itself in the foreign market, and was absolutely here to stay.

However, creating new marques from scratch isn’t always successful, even for giants like Toyota. Scion, for example, found itself absorbed within 13 years. And Scion produced some wonderful cars during their history. Lexus, on the other hand, easily stands apart from its parent company as a solid contender alongside the likes of the German and US titans of the luxury vehicle market. But perfectionism to the point of obsession doesn’t fade easily. As such, Lexus will likely continue this pursuit well into the future, and we as consumers will be glad to reap the incredible fruits of their labor.

Press photos by Lexus Newsroom

Outline photo by Outlines

Join the Club Lexus forums now!

M.C. Cuccio

I've been an automotive aficionado since I had baby teeth. My path was set when I first leaned on my grandfather's classic Porsche as I learned how to walk. One of my first memories was my mother sitting me behind the wheel of her Pontiac and talking me through the instrumentation and controls. Even though I was a mere three or four years old, I was instantly sold, and filled notebooks with technical drawings, sketches, and collections of manuals of all sorts of cars. I've actively tracked developments in automotive and motorsport technology for well over 20 years, and pride myself on being intimately familiar with the functions and history of a wide range of vehicles.

My primary goal as a writer and enthusiast is to equally learn and share what I've learned in a constructive and interesting way. I maintain connections with people from around the world and can read technical manuals in Italian, Japanese, and Spanish, granting me access to a wide array of resources. My primary focuses are deep-dives into historical topics, motorsport discussion, and learning about the complex mechanical elements of such vehicles. As such, my research is never perfect; as anyone into cars will attest, the more you learn about cars, the more you realize how little you actually know. Therefore, I always welcome fresh knowledge and corrections to help me better my work in the future.