47857155-Toyota

ToyotaFrom Wikipedia, the free encyclopediacustomer satiFor other uses, see Toyota (disambiguation).

Toyota Motor Corporation

Toyota Jidosha Kabushiki-gaisha

トヨタ自動車株式会社

TypePublic (TYO: 7203, LSE: TYT &

NYSE: TM)

Industry

Automotive

Robotics

Financial services

Founded August 28, 1937

Founder(s) Kiichiro Toyoda

Headquarters Toyota City, Aichi, Japan

Area served Worldwide

Key people

Fujio Cho (Chairman and Representative Director)

Katsuaki Watanabe (Vice chairman and

Representative Director) Akio Toyoda (President

and Representative Director)

Shoichiro Toyoda (Honorary Chairman)[1]

ProductsAutomobiles

Financial Services

Revenue ¥18.9 trillion (FY2010)[2]

Operating income ¥147.5 billion (FY2010)[2]

Profit ¥209.4 billion (FY2010)[2]

Total assets ¥30.3 trillion (FY2010)[2]

Total equity ¥10.3 trillion (FY2010)[2]

Employees 71,116 (for TMC, total Toyota 320,808)[3]

Parent Toyota Group

DivisionsLexus

Scion

Subsidiaries

522 (Toyota Group) Hino Motors, Ltd.,

Daihatsu Motor Co., Ltd., Toyota

Financial Services, DENSO, Toyota

Industries

Website Toyota Global

Toyota Motor Corporation (Japanese: トヨタ自動車株式会社 Toyota Jidōsha Kabushiki-gaisha?, TYO: 7203), LSE: TYT, NYSE: TM, commonly known simply as Toyota and abbreviated as TMC, is a multinational automaker headquartered in Toyota, Aichi, Japan. In 2009, Toyota Motor Corporation employed 71,116 people worldwide (total Toyota 320,808).[3] TMC is the world's largest automobile manufacturer by sales [4] [5] and production.[6]

The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation group companies are Toyota (including the Scion brand), Lexus, Daihatsu and Hino Motors,[7] along with several "non-automotive" companies.[8] TMC is part of the Toyota Group, one of the largest conglomerates in the world.

Toyota Motor Corporation is headquartered in Toyota City, Aichi and in Tokyo.[9] In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division and also builds robots.

Contents

[hide]

1 Company overview 2 Logo and branding

o 2.1 Marketing o 2.2 Sports

3 Company strategy o 3.1 Operations o 3.2 Worldwide presence

3.2.1 North America 4 Product line

o 4.1 Electric technology 4.1.1 Plug-in hybrids 4.1.2 All-electric vehicles

o 4.2 Cars 4.2.1 SUVs and crossovers 4.2.2 Pickup trucks 4.2.3 Luxury-type vehicles

5 Motorsport

o 5.1 TRD 6 Non-automotive activities

o 6.1 Aerospace o 6.2 Philanthropy o 6.3 Higher education o 6.4 Robotics o 6.5 Finance o 6.6 Agricultural biotechnology

7 Financial information o 7.1 Government bailouts

8 Production and sales numbers 9 Environmental record 10 History

o 10.1 Recent company developments 10.1.1 2007–2010 financial crisis 10.1.2 2009–2010 vehicle recalls

11 See also 12 References 13 External links

[edit] Company overview

Toyota headquarters in Toyota City, Japan

Vehicles were originally sold under the name "Toyoda" (トヨダ), from the family name of the company's founder, Kiichirō Toyoda. In September 1936, the company ran a public competition to design a new logo. Out of 27,000 entries the winning entry was the three Japanese katakana letters for "Toyoda" in a circle. But Risaburō Toyoda, who had married into the family and was not born with that name, preferred "Toyota" (トヨタ) because it took eight brush strokes (a fortuitous number) to write in Japanese, was visually simpler (leaving off the diacritic at the end) and with a voiceless consonant instead of a voiced one (voiced consonants are considered to have a "murky" or "muddy" sound compared to voiceless consonants, which are "clear"). Since "Toyoda" literally means "fertile rice paddies", changing the name also helped to distance the company from associations with old-fashioned farming. The newly formed word was

trademarked and the company was registered in August 1937 as the "Toyota Motor Company".[10][11][12]

In predominantly Chinese-speaking countries or regions using traditional Chinese characters, e.g. Hong Kong and Taiwan, Toyota is known as "豊田".[13] In predominantly Chinese speaking countries using simplified Chinese characters (e.g. China), Toyota is known as "丰田"[14] (pronounced as "Fēngtián" in Mandarin Chinese ). These are the same characters as the founding family's name "Toyoda" in Japanese, which translate to "fertile rice paddies" in the Chinese language as well.

From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet" (トヨペット).[15] The first vehicle sold under this name was the Toyopet SA [16] but it also included vehicles such as the Toyopet SB light truck, Toyopet Stout light truck,[17] Toyopet Crown and the Toyopet Corona. However, when Toyota eventually entered the American market in 1957 with the Crown, the name was not well received due to connotations of toys and pets.[18] The name was soon dropped for the American market but continued in other markets until the mid 1960s.

With over 30 million sold, the Corolla is one of the most popular and best selling cars in the world.

The Toyota Motor Company received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers in the lucrative US market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an "entry level" product, and their small vehicles employed a low level of quality in order to keep the price low.

By the early sixties, the US had begun placing stiff import tariffs on certain vehicles. The Chicken tax of 1964 placed a 25% tax on imported light trucks.[19] In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the early eighties.[19]

In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General Motors called NUMMI, the New United Motor Manufacturing, Inc, operating an automobile-manufacturing plant in Fremont, California. The factory was an old General Motors plant that had been closed for two years. Toyota then started to establish new brands at the end of the 1980s, with the launch of their luxury division Lexus in 1989.

In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also began production of the world's best-selling hybrid car, the Prius, in 1997.

With a major presence in Europe, due to the success of Toyota Team Europe, the corporation decided to set up TMME, Toyota Motor Europe Marketing & Engineering, to help market vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had become very popular among British drivers. Bases in Indiana, Virginia and Tianjin were also set up. In 1999, the company decided to list itself on the New York and London Stock Exchanges.

Toyota Deutschland's headquarters in Cologne

In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank, which was accused of corruption by the Japan's government for making bad loans to alleged Yakuza crime syndicates with executives accused of blocking Financial Service Agency inspections.[20] The UFJ was listed among Fortune Magazine's largest money-losing corporations in the world, with Toyota's chairman serving as a director.[21] At the time, the UFJ was one of the largest shareholders of Toyota. As a result of Japan's banking crisis, UFJ merged with the Bank of Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group.

In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with French motoring companies Citroën and Peugeot a year after Toyota started producing cars in France.

Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year 2005.[22] The company was number one in global automobile sales for the first quarter of 2008.[23]

On December 7, 2004, a US press release was issued stating that Toyota would be offering Sirius Satellite Radios. However, as late as January 27, 2007, Sirius Satellite Radio and XM Satellite radio kits were not available for Toyota factory radios.[citation needed] While the press release enumerated nine models, only limited availability existed at the dealer level in the US. As of 2008, all Toyota and Scion models have either standard or available XM radio kits. Major Lexus

dealerships have been offering satellite radio kits for Lexus vehicles since 2005, in addition to factory-equipped satellite radio models.

In 2007, Toyota released an update of its full size truck, the Tundra, produced in two American factories, one in Texas and one in Indiana. "Motor Trend" named the Tundra "Truck of the Year," and the 2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two new factories, one to build the RAV4 in Woodstock, Ontario, Canada and the other to build the Toyota Prius in Blue Springs, Mississippi, USA. This plant was originally intended to build the Toyota Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The company has also found recent success with its smaller models—the Corolla and Yaris—as gas prices have risen rapidly in the last few years.

[edit] Logo and branding

A replica of the 1936 Toyota Model AA, with the original Toyoda logo

In 1936, Toyota entered the passenger car market with its Model AA and held a competition to establish a new logo emphasizing speed for its new product line. After receiving 27,000 entries, one was selected that additionally resulted in a change of its monikor to "Toyota" from the family name "Toyoda." It was believed that the new name sounded better and its eight-stroke count in the Japanese language was associated with wealth and good fortune. The original logo no longer is found on its vehicles but remains the corporate emblem used in Japan.

Still, there were no guidelines for the use of the brand name, "TOYOTA", which was used throughout most of the world, which led to inconsistencies in its worldwide marketing campaigns.

To remedy this, Toyota introduced a new worldwide logo in 1989 in conjunction with and to differentiate it from the newly released luxury Lexus brand. There are three ovals in the new logo that combine to form the letter "T", which stands for Toyota. The overlapping of the two perpendicular ovals inside the larger oval represent the mutually beneficial relationship and trust that is placed between the customer and the company while the larger oval that surrounds both of these inner ovals represent the "global expansion of Toyota's technology and unlimited potential for the future."[24]

The logo started appearing on all printed material, advertisements, dealer signage, and the vehicles themselves in 1990.

[edit] Marketing

MEGAWEB, Toyota's permanent exhibition showroom and museum in Odaiba, Tokyo

Toyota's marketing efforts have focused on emphasizing the positive experiences of ownership and vehicle quality.[25] The ownership experience has been targeted in slogans such as "Oh, what a feeling!" (1978–1985, in the US),[25] "Who could ask for anything more" (1986–1989), "I love what you do for me, Toyota!" (1990–1997), "Everyday" (1997–2000)", "Get the feeling!" (2001–2004), and "Moving Forward" (2004–present).[26]

Recently, Toyota's new United States marketing strategy has included such hits as "Swagger Wagon" [27] and the marketing for the new Avalon,[28] which includes a throwback to the "old days of travel."

[edit] Sports

See Toyota Center, Toyota Park, Toyota Racing, Toyota Racing Development, and Toyota in motorsports

[edit] Company strategy

Main article: The Toyota Way

Toyota's management philosophy has evolved from the company's origins and has been reflected in the terms "Lean Manufacturing" and Just In Time Production, which it was instrumental in developing.[29] Toyota's managerial values and business methods are known collectively as the Toyota Way.

In April 2001 the Toyota Motor Corporation adopted the "Toyota Way 2001," an expression of values and conduct guidelines that all Toyota employees should embrace. Under the two headings of Respect for People and Continuous Improvement, Toyota summarizes its values and conduct guidelines with the following five principles:[30]

Challenge Kaizen (improvement) Genchi Genbutsu (go and see) Respect Teamwork

According to external observers, the Toyota Way has four components:[31]

1. Long-term thinking as a basis for management decisions.2. A process for problem-solving.3. Adding value to the organization by developing its people.4. Recognizing that continuously solving root problems drives organizational learning.

The Toyota Way incorporates the Toyota Production System.

[edit] Operations

Main article: Toyota Production System

Toyota has long been recognized as an industry leader in manufacturing and production. Three stories of its origin have been found,[where?] one that they studied Piggly-Wiggly's just-in-time distribution system, one that they followed the writings of W. Edwards Deming, and one that they were given the principles from a WWII US government training program (Training Within Industry).[citation needed] It is possible that all these, and more, are true.[vague] Regardless of the origin, the principles described by Toyota in its management philosophy, The Toyota Way, are: Challenge, Kaizen (improvement), Genchi Genbutsu (go and see), Respect, and Teamwork.[30]

As described by external observers of Toyota, the principles of the Toyota Way are:[31]

1. Base your management decisions on a long-term philosophy, even at the expense of short-term goals

2. Create continuous process flow to bring problems to the surface3. Use "pull" systems to avoid overproduction4. Level out the workload5. Build a culture of stopping to fix problems, to get quality right the first time6. Standardized tasks are the foundation for continuous improvement and employee

empowerment7. Use visual control so no problems are hidden8. Use only reliable, thoroughly tested technology that serves your people and processes9. Grow leaders who thoroughly understand the work, live the philosophy, and teach it to

others10. Develop exceptional people and teams who follow your company’s philosophy11. Respect your extended network of partners and suppliers by challenging them and

helping them improve12. Go and see for yourself to thoroughly understand the situation (genchi genbutsu)13. Make decisions slowly by consensus, thoroughly considering all options; implement

decisions rapidly14. Become a learning organization through relentless reflection and continuous

improvement

Toyota Pavilion at the Expo in Aichi

Toyota has grown to a large multinational corporation from where it started and expanded to different worldwide markets and countries. It displaced GM and became the world's largest automobile maker for the year 2008. It held the title of the most profitable automobile maker (US$11 billion in 2006) along with increasing sales in, among other countries, the United States. The world headquarters of Toyota are located in its home country in Toyota, Aichi, Japan. Its subsidiary, Toyota Financial Services sells financing and participates in other lines of business. Toyota brands include Scion and Lexus and the corporation is part of the Toyota Group. Toyota also owns 51% of Daihatsu, and 16.7% of Fuji Heavy Industries, which manufactures Subaru vehicles. They also acquired 5.9% of Isuzu Motors Ltd. on November 7, 2006 and will be introducing Isuzu diesel technology into their products.

Toyota has introduced new technologies including one of the first mass-produced hybrid gasoline-electric vehicles, of which it says it has sold 2 million globally as of 2010,[32] Advanced Parking Guidance System (automatic parking), a four-speed electronically controlled automatic with buttons for power and economy shifting, and an eight-speed automatic transmission. Toyota, and Toyota-produced Lexus and Scion automobiles, consistently rank near the top in certain quality and reliability surveys, primarily J.D. Power and Consumer Reports [33] although they led in automobile recalls for the first time in 2009.[34]

In 2005, Toyota, combined with its half-owned subsidiary Daihatsu Motor Company, produced 8.54 million vehicles, about 500,000 fewer than the number produced by GM that year. Toyota has a large market share in the United States, but a small market share in Europe. Its also sells vehicles in Africa and is a market leader in Australia. Due to its Daihatsu subsidiary it has significant market shares in several fast-growing Southeast Asian countries.[35]

According to the 2008 Fortune Global 500, Toyota Motor is the fifth largest company in the world. Since the recession of 2001, it has gained market share in the United States. Toyota's market share struggles in Europe where its Lexus brand has three tenths of one percent market share, compared to nearly two percent market share as the US luxury segment leader.

In the first three months of 2007, Toyota together with its half-owned subsidiary Daihatsu reported number one sales of 2.348 million units. Toyota's brand sales had risen 9.2% largely on demand for Corolla and Camry sedans. The difference in performance was largely attributed to surging demand for fuel-efficient vehicles. In November 2006, Toyota Motor Manufacturing

Texas added a facility in San Antonio.[36] Toyota has experienced quality problems and was reprimanded by the government in Japan for its recall practices.[37] Toyota currently maintains over 16% of the US market share and is listed second only to GM in terms of volume.[38] Toyota Century Royal is the official state car of the Japanese imperial family, namely for the current Emperor of Japan.

Toyota was hit by the global financial crisis of 2008 as it was forced in December 2008 to forecast its first annual loss in 70 years.[39] In January 2009 it announced the closure of all of its Japanese plants for 11 days to reduce output and stocks of unsold vehicles.[40]

Akio Toyoda became the new president and CEO of the company on June 23, 2009 by replacing Katsuaki Watanabe who became the new vice chairman by replacing Katsuhiro Nakagawa.[41]

[edit] Worldwide presence

The Camry is assembled in several facilities around the world including Australia, China, Taiwan, Japan, Malaysia, Philippines, Russia, Thailand, India, Vietnam and the United States.

Toyota has factories in most parts of the world, manufacturing or assembling vehicles for local markets. Toyota has manufacturing or assembly plants in Japan, Australia, India, Sri Lanka, Canada, Indonesia, Poland, South Africa, Turkey, Colombia, the United Kingdom, the United States, France, Brazil, Portugal, and more recently, Argentina, Czech Republic, Mexico, Malaysia, Thailand, Pakistan, Egypt, China, Vietnam, Venezuela, the Philippines, and Russia.

Toyota's net revenue by geographical regions for the year ended 31 March 2007[42]

Geographic region Total sales ( Yen in millions)Japan 8,152,884North America 8,771,495Europe 3,346,013Asia 1,969,957Others 1,707,742

In 2002, Toyota initiated the "Innovative International Multi-purpose vehicle" project (IMV) to optimize global manufacturing and supply systems for pickup trucks and multipurpose vehicles, and to satisfy market demand in more than 140 countries worldwide. IMV called for diesel engines to be made in Thailand, gasoline engines in Indonesia and manual transmissions in India and the Philippines, for supply to the countries charged with vehicle production. For vehicle

assembly, Toyota would use plants in Thailand, Indonesia, Argentina and South Africa. These four main IMV production and export bases supply Asia, Europe, Africa, Oceania, Latin America and the Middle East with three IMV vehicles: The Toyota Hilux (Vigo), the Fortuner, and the Toyota Innova.[43]

[edit] North America

Main article: Toyota Motor Engineering & Manufacturing North America

Toyota Motor North America headquarters is located in Torrance, California and operates as a holding company in North America. Its manufacturing headquarters is located in Hebron, Kentucky, and is known as Toyota Motor Engineering & Manufacturing North America, or TEMA.

A Toyota dealership in Fremont, California.

Toyota Canada Inc. has been in production in Canada since 1983 with an aluminium wheel plant in Delta, British Columbia which currently employs a workforce of roughly 260. Its first vehicle assembly plant, in Cambridge, Ontario since 1988, now produces Corolla compact cars, Matrix crossover vehicles and Lexus RX 350 luxury SUVs, with a workforce of 4,300 workers. Its second assembly operation in Woodstock, Ontario began manufacturing the RAV4 late in 2008.[44] In 2006, Toyota's subsidiary Hino Motors opened a heavy duty truck plant, also in Woodstock, employing 45 people and producing 2000 trucks annually.[45]

Toyota Technical Center, Ann Arbor Twp., MI

Toyota has a large presence in the United States with five major assembly plants in Huntsville, Alabama; Georgetown, Kentucky; Princeton, Indiana; San Antonio, Texas; Buffalo, West Virginia. A new plant in Blue Springs, Mississippi is currently being finished after being put on hold during the recent economic downturn. The Mississippi operation is scheduled to go online with production in July or August of 2011. Toyota had a joint-venture operation with General Motors at New United Motor Manufacturing Inc. (NUMMI), in Fremont, California, which began in 1984 and ended in 2009.[46] It still has a joint-venture with Subaru at Subaru of Indiana Automotive, Inc. (SIA), in Lafayette, Indiana, which started in 2006. Production on a new

manufacturing plant in Tupelo, Mississippi was scheduled for completion in 2010 but is currently on indefinite hold. North America is a major automobile market for Toyota. In these assembly plants, the Camry and the Tundra are manufactured, among others.

Toyota marketing, sales, and distribution in the US are conducted through a separate subsidiary, Toyota Motor Sales, U.S.A., Inc. Toyota uses a number of slogans in its American TV commercials such as It's time to move forward, Smart way to keep moving forward, or Moving forward. It has started producing larger trucks, such as the new Tundra, to go after the large truck market in the United States. Toyota is also pushing hybrid vehicles in the US such as the Prius, Camry Hybrid, Highlander Hybrid, and various Lexus products.

Toyota has sold more hybrid vehicles in the country than any other manufacturer. Toyota is a public corporation and the company's shares are traded on the Tokyo Stock Exchange, New York Stock Exchange and the London Stock Exchange. Toyota also sponsors Club Deportivo Guadalajara.

[edit] Product line

[edit] Electric technology

Toyota Prius, flagship of Toyota's hybrid technologyMain articles: Hybrid Synergy Drive and Hybrid electric vehicle

Toyota is one of the largest companies to push hybrid vehicles in the market and the first to commercially mass-produce and sell such vehicles, an example being the Toyota Prius. The company eventually began providing this option on the main smaller cars such as Camry and later with the Lexus divisions, producing some hybrid luxury vehicles. It labeled such technology in Toyota cars as "Hybrid Synergy Drive" and in Lexus versions as "Lexus Hybrid Drive."

The Prius has become the top selling hybrid car in America. Toyota, as a brand, now has three hybrid vehicles in its lineup: the Prius, Highlander, and Camry. The popular minivan Toyota Sienna is scheduled to join the hybrid lineup by 2010, and by 2030 Toyota plans to offer its entire lineup of cars, trucks, and SUVs with a Hybrid Synergy Drive option (Toyota has said it plans to make a hybrid-electric system available on every vehicle it sells worldwide sometime in the 2010s).[47]

Lexus LS 600h hybrid sedan.

Worldwide sales of hybrid vehicles produced by Toyota reached 1.0 million vehicles by May 31, 2007, and the 2.0 million mark was reached by August 31, 2009, with hybrids sold in 50 countries.[48][49] Toyota's hybrid sales are led by the Prius, with worldwide cumulative sales of 1.43 million by August 2009.[48] Toyota's CEO has committed to eventually making every car of the company a hybrid vehicle.[50][51] Lexus also has their own hybrid lineup, consisting of the GS 450h, RX 400h, and launched in 2007, the LS 600h/LS 600h L.

Toyota and Honda have already said they've halved the incremental cost of electric hybrids and see cost parity in the future (even without incentives).[52] Hybrids are viewed by some automobile makers as a core segment of the future vehicle market.[53]

[edit] Plug-in hybrids

Main article: Plug-in hybrid

Plug-in Prius concept

Toyota is currently testing its "Toyota Plug-in HV" in Japan, the United States, and Europe. Like GM's Volt, it uses a lithium-ion battery pack. The PHEV (plug-in hybrid electric vehicle) could have a lower environmental impact than existing hybrids.[54][55]

On June 5, 2008, A123Systems announced that its Hymotion plug-in hybrid conversion kits for the Prius would be installed by six dealers, including four Toyota dealerships: Westboro Toyota in Boston, Fitzgerald Toyota in Washington D.C., Toyota of Hollywood in Los Angeles, and Madison Wisconsin-based Smart Motors.[56]

[edit] All-electric vehicles

Toyota is speeding up the development of vehicles that run only on electricity with the aim of mass-producing them in the early part of the next decade. Road tests for the current prototype, called "e-com", had ended in 2006.[57] Toyota has made many concept electric vehicles, including the FT-EV and FT-EV II.

In May 2010, Toyota launched a collaboration with Tesla Motors to create electric vehicles. Toyota agreed to purchase US$50 million of Tesla common stock subsequent to the closing of Tesla's planned initial public offering.[58] Tesla will buy Toyota's recently closed NUMMI factory for US$42 million.[59][60] Toyota plans to release an electric version of the RAV4 by 2012 using components from Tesla and the platform of the RAV4.

Second generation Toyota Estima Hybrid

[edit] Cars

Further information: List of Toyota vehicles

As of 2009, Toyota officially lists approximately 70 different models sold under its namesake brand, including sedans, coupes, vans, trucks, hybrids, and crossovers.[61] Many of these models are produced as passenger sedans, which range from the subcompact Toyota Yaris, to compact Corolla, to mid-size Camry, and full-size Avalon.[61] Vans include the Previa/Estima, Sienna, and others.[61] Several small cars, such as the xB and tC, are sold under the Scion brand.[61]

[edit] SUVs and crossovers

Toyota crossovers range from the compact Matrix and RAV4, to midsize Venza and Kluger/Highlander.[61] Toyota SUVs range from the midsize 4Runner to full-size Land Cruiser.[61]

Other SUVs include the Land Cruiser Prado and FJ Cruiser.[61]

[edit] Pickup trucks

The examples and perspective in this section may not represent a worldwide view of the subject. Please improve this article and discuss the issue on the talk page. (August 2010)

2007 Tundra Double Cab

The Tundra is a full-size pickup truck sold by Toyota that originally went into production in 1999 for the 2000 US model year. As of early 2010, the Tundra has captured 16 percent of the full-size half-ton market in the US.[citation needed] The all new Tundra is assembled in San Antonio, Texas, US. Toyota Motor Corporation assembled around 150,000 Standard and Double Cabs, and only 70,000 Crew Max's in 2007. In addition to the Tundra, Toyota also produces the Tacoma, with a smaller body and smaller engine than its bigger brother. The Tacoma is also produced at the company's San Antonio facility.

Outside the United States, Toyota produces the Hilux in Standard and double cab, gasoline and diesel engine, 2WD and 4WD versions. The BBC's Top Gear TV show featured 2 episodes of a Hilux that was deemed "virtually indestructible".[62]

[edit] Luxury-type vehicles

Further information: List of Lexus vehicles

As of 2009, the company sells nine luxury-branded models under its Lexus division, ranging from the LS sedan to RX crossover and LX SUV.[61] Luxury-type sedans produced under the Toyota brand include the Century, Crown Royal, and Crown Athlete.[61] A limited-edition model produced for the Emperor of Japan is the Century Royal.

[edit] Motorsport

Main article: Toyota in motorsports

Toyota has been involved in many global motorsports series. They also represent their Lexus brand in other sports car racing categories. Toyota also makes engines and other auto parts for other Japanese motorsports including formula Nippon, Super GT, formula 3 and formula Toyota series. Toyota also runs a driver development programme known as TDP (Toyota Young Drivers Program) which they made for funding and educating future Japanese motorsports talent.[63] Toyota Motorsport GmbH, with and headquarters in Cologne, Germany) was previously responsible for Toyota's major motorsports development including Formula One. Toyota Motorsport GmbH also developed cars for World Rally Championship and Le Mans Series. Toyota enjoyed success in all these motorsports categories. In 2002, Toyota entered Formula One as a constructor and engine supplier, however despite having experienced drivers and a larger budget than many other teams, they failed to match their success in other categories, with

five second places their best results. On 4 November 2009 Toyota announced they were pulling out of the sport due to the global economic situation.

[edit] TRD

Toyota Racing Development was brought about to help develop true high performance racing parts for many Toyota vehicles. TRD has often had much success with their after market tuning parts, as well as designing technology for vehicles used in all forms of racing.TRD is also responsible for Toyota's involvement in NASCAR motorsports.

[edit] Non-automotive activities

[edit] Aerospace

Toyota is a minority shareholder in Mitsubishi Aircraft Corporation, having invested US$67.2 million in the new venture which will produce the Mitsubishi Regional Jet, slated for first deliveries in 2013.[64] Toyota has also studied participation in the general aviation market and contracted with Scaled Composites to produce a proof-of-concept aircraft, the TAA-1 in 2002.[65]

[edit] Philanthropy

The Toyota Municipal Museum of Art in Aichi, sponsored by the manufacturer

Toyota is supporter of the Toyota Family Literacy Program along with National Center for Family Literacy, helping low-income community members for education, United Negro College Fund (40 annual scholarships), National Underground Railroad Freedom Center (US$1 million) among others.[66] Toyota created the Toyota USA Foundation.

[edit] Higher education

Toyota established the Toyota Technological Institute in 1981, as Sakichi Toyoda had planned to establish a university as soon as he and Toyota became successful. Toyota Technological Institute founded the Toyota Technological Institute at Chicago in 2003. Toyota is supporter of the "Toyota Driving Expectations Program," "Toyota Youth for Understanding Summer Exchange Scholarship Program," "Toyota International Teacher Program," "Toyota

TAPESTRY," "Toyota Community Scholars" (scholarship for high school students), "United States Hispanic Chamber of Commerce Internship Program," and "Toyota Funded Scholarship."[67] It has contributed to a number of local education and scholarship programs for the University of Kentucky, Indiana, and others.[67]

[edit] Robotics

Main article: Toyota Partner Robot

Toyota trumpet-playing robot

In 2004, Toyota showcased its trumpet-playing robot.[68] Toyota has been developing multitask robots destined for elderly care, manufacturing, and entertainment. A specific example of Toyota's involvement in robotics for the elderly is the Brain Machine Interface. Designed for use with wheelchairs, it "allows a person to control an electric wheelchair accurately, almost in real-time", with his mind.[69] The thought controls allow the wheelchair to go left, right and forward with a delay between thought and movement of just 125 milliseconds.[69]

[edit] Finance

Toyota Financial Services Corporation provides financing to Toyota customers.

[edit] Agricultural biotechnology

Toyota invests in several small start-up businesses and partnerships in biotechnology, including:

P.T. Toyota Bio Indonesia in Lampung, Indonesia Australian Afforestation Pty. Ltd. in Western Australia and Southern Australia Toyota Floritech Co., Ltd. in Rokkasho-Mura, Kamikita District, Aomori Prefecture Sichuan Toyota Nitan Development Co., Ltd. in Sichuan, China Toyota Roof Garden Corporation in Miyoshi-Cho, Aichi Prefecture

[edit] Financial information

Toyota is publicly traded on the Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo exchanges under company code TYO: 7203. In addition, Toyota is foreign-listed on the New York Stock Exchange under NYSE: TM and on the London Stock Exchange under LSE: TYT. Toyota has been publicly traded in Japan since 1949 and internationally since 1999.[70]

As reported on its consolidated financial statements, Toyota has 540 consolidated subsidiaries and 226 affiliates.

Toyota Motor North America (100% – 2004) Toyota Canada Inc. owned via Toyota Motor North America Toyota Tsusho – Trading company for the Toyota Group Daihatsu Motor Company (51.2% – March 31, 2006) Lexus 100% (1989) Scion 100% (2003) DENSO (24.74% – September 30, 2006) Toyota Industries (23.51% – March 31, 2006) Aisin Seiki Co. (23.0% – September 30, 2006) Fuji Heavy Industries (16.66% – June 28, 2008) Isuzu Motors (5.9% – November 10, 2006) PT Toyota Astra Motor (49% – 2003) PT Toyota Motor Manufacturing Indonesia (95% – 2003)

[edit] Government bailouts

Toyota's financial unit has asked for an emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at more than US$3 billion. It says the international financial situation is squeezing its business, forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. It is the first time the state-backed bank has been asked to lend to a Japanese car manufacturer.[71]

[edit] Production and sales numbers

Typical breakdown of sales by regionCalendar Year Total Japan United States

Production Sales Production Sales Sales1935 201936 1,1421937 4,0131938 4,6151939 11,9811940 14,7871941 14,6111942 16,3021943 9,8271944 12,7201945 3,2751946 5,8211947 3,9221948 6,7031949 10,8241950 11,7061951 14,2281952 42,1061953 16,4961954 22,7131955 22,7861956 46,7161957 79,5271958 78,8561959 101,1941960 154,7701961 210,9371962 230,3501963 318,4951964 425,7641965 477,6431966 587,5391967 832,1301968 1,097,4051969 1,471,2111970 1,609,1901971 1,955,0331972 2,087,1331973 2,308,0981974 2,114,9801975 2,336,053

1976 2,487,8511977 2,720,7581978 2,929,1571979 2,996,2251980 3,293,3441981 3,220,4181982 3,144,5571983 3,272,3351984 3,429,2491985 3,665,6221986 3,660,1671987 3,638,2791988 3,956,697[72] 2,120,273[72]

1989 3,975,902[72] 2,308,863[72]

1990 4,212,373[72] 2,504,291[72]

1991 4,085,071[72] 2,355,356[72]

1992 3,931,341[72] 2,228,941[72]

1993 3,561,750[72] 2,057,848[72]

1994 3,508,456[72] 2,031,064[72]

1995 3,171,277[72] 2,060,125[72]

1996 3,410,060[72] 2,135,276[72]

1997 3,502,046[72] 2,005,949[72]

1998 5,210,000[73]

1999 5,462,000[74]

2000 5,954,723[75] 1,619,206[76]

2001 5,847,743[77] 4,046,637[77] 2,291,503[77] 1,741,254[citation needed]

2002 6,309,307[78] 4,138,873[78] 2,218,324[78] 1,756,127[79]

2003 6,826,166[80] 4,244,667[80] 2,305,635[80] 1,866,314[citation needed]

2004 7,547,177[81] 4,454,212[81] 2,387,556[81] 2,060,049[82]

2005 8,232,143[83] 4,611,076[83] 2,368,817[83] 2,260,296[citation needed]

2006 9,017,786[84] 5,085,600[84] 2,368,706[84] 2,542,524[85]

2007 9,497,754[86] 5,119,631[86] 2,261,515[86] 2,620,825[citation needed]

2008 9,225,236[87] 4,911,861[87] 2,153,197[87] 2,217,662[88]

2009 7,234,439[89] 3,543,199[89] 1,996,174[89] 1,770,147[90]

Calendar YearProduction Sales Production Sales Sales

Total Japan United States

Japan production numbers 1937 to 1987.[91] Global production since 1998, global and Japanese production, Japanese sales since 2001 consolidated incl. Daihatsu and Hino.

[edit] Environmental record

The Toyota Motor Corporation (TMC) has been a leader in environmentally friendly vehicle technologies, most notably the RAV4 EV (produced from 1997 to 2003) and the Toyota Prius (1997 to present). Toyota is now working on their next generation Prius and second generation RAV4 EV both due out in 2012.

Toyota implemented its Fourth Environmental Action Plan in 2005. The plan contains four major themes involving the environment and the corporation's development, design, production, and sales. The five-year plan is directed at the, "arrival of a revitalized recycling-based society."[92] Toyota had previously released its Eco-Vehicle Assessment System (Eco-VAS) which is a systematic life cycle assessment of the effect a vehicle will have on the environment including production, usage, and disposal. The assessment includes, "... fuel efficiency, emissions and noise during vehicle use, the disposal recovery rate, the reduction of substances of environmental concern, and CO2 emissions throughout the life cycle of the vehicle from production to disposal."[93] 2008 marks the ninth year for Toyota's Environmental Activities Grant Program which has been implemented every year since 2000. Themes of the 2008 program consist of "Global Warming Countermeasures" and "Biodiversity Conservation."[94]

Since October 2006, Toyota's new Japanese-market vehicle models with automatic transmissions are equipped with an Eco Drive Indicator. The system takes into consideration rate of acceleration, engine and transmission efficiency, and speed. When the vehicle is operated in a fuel-efficient manner, the Eco Drive Indicator on the instrument panel lights up. Individual results vary depending on traffic issues, starting and stopping the vehicle, and total distance traveled, but the Eco Drive Indicator may improve fuel efficiency by as much as 4%.[95] Along with Toyota's eco-friendly objectives on production and use, the company plans to donate US$1 million and five vehicles to the Everglades National Park. The money will be used to fund environmental programs at the park. This donation is part of a program which provides US$5 million and 23 vehicles for five national parks and the National Parks Foundation.[96] However new figures from the United States National Research Council show that the continuing hidden health costs of the auto industry to the US economy in 2005 amounted to US$56 million.[97]

The United States EPA has awarded Toyota Motor Engineering & Manufacturing North America, Inc (TEMA) with a ENERGY STAR Sustained Excellence Award in 2007, 2008 and 2009 [98][99][100]

In 2007, Toyota's Corporate Average Fuel Economy (CAFE) fleet average of 26.69 mpg-US (8.813 L/100 km; 32.05 mpg-imp) exceeded all other major manufactures selling cars within the United States. Only Lotus Cars which sold the Elise and Exige powered by Toyota's 2ZZ-GE engine did better with an average of 30.2 mpg-US (7.79 L/100 km; 36.3 mpg-imp).[101]

[edit] History

Main article: History of Toyota

Toyota started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda.[102] Its first vehicles were the A1 passenger car and the G1 in 1935. Toyota Motor Co. was established as an

independent company in 1937. In 2008, Toyota's sales surpassed General Motors, making Toyota number one in the world.[103]

[edit] Recent company developments

[edit] 2007–2010 financial crisis

On May 8, 2009, Toyota reported a record annual net loss of US$4.2 billion, making it the latest automobile maker to be severely affected by the 2007–2010 financial crisis.

[edit] 2009–2010 vehicle recalls

Main article: 2009–2010 Toyota vehicle recalls

From November 2009 through the first quarter of 2010, Toyota recalled more than 8 million (accounts differ) cars and trucks worldwide in several recall campaigns, and briefly halted production and sales.[104][105] The US Sales Chief, James Lentz, was questioned by the United States Congress committees on Oversight and Investigations on February 23, 2010, as a result of recent recalls.[106] On February 24, 2010, Toyota CEO Akio Toyoda testified before the House Committee on Oversight and Government Reform.[107] On 6 April 2010, The US government sought a record penalty of US$16.375 million from Toyota for its delayed response in notifying the National Highway Traffic Safety Administration regarding the defective accelerator pedals.[108] On 18 May 2010, Toyota paid the fine without an admission of wrongdoing.[109][110][111] The record fine and the high profile hearings caused accusations of conflict of interest. Senior managing director Takahiko Ijichi said that recall-related costs in the financial year that ended March 2010 totaled US$1.93 billion (¥180 billion).[112]

Toyota Motor Corporation: Company Historyby Pete Abilla on January 5, 2007

Since some of your are familiar, practitioners, or die-hard fans of the Toyota Production System, I thought this history would be a nice reminder of how the company came to be the

leader that it is. The data is from 2001 — so it’s a outdated, but it provides a decent history on the company.

Found via the Directory of Company Histories, volume 38, Saint James Press, 2001.

+++++

Address: 1, Toyota-choToyota City, Aichi 471-8571Japan

大きな地図で見る

Telephone: (81) 565-28-2121Fax: (81) 565-23-5800

http://www.global.toyota.com

Statistics: Public CompanyIncorporated: 1937 as Toyota Motor Co., Ltd.Employees: 214,631Sales: $119.66 billion (2000)Stock Exchanges: Tokyo New YorkTicker Symbol: TMNAIC: 42111 Automobile and Other Motor Vehicle Wholesalers; 332311 Prefabricated Metal Building and Component Manufacturing; 336111 Automobile Manufacturing; 336112 Light Truck and Utility Vehicle Manufacturing; 33612 Heavy Duty Truck Manufacturing; 336211 Motor Vehicle Body Manufacturing (pt); 336312 Gasoline Engine and Engine Parts Manufacturing; 336322 Other Motor Vehicle Electrical and Electronic Equipment Manufacturing (pt); 33633 Motor Vehicle Steering and Suspension Components (Except Spring) Manufacturing; 33634 Motor Vehicle Brake System Manufacturing (pt); 33635 Motor Vehicle Transmission and Power Train Parts Manufacturing; 336399 All Other Motor Vehicle Parts Manufacturing (pt)

inShare 1

Company Perspectives:

We believe the potential for growth in our industry is extremely promising. Today, only about one-third of the world’s population enjoys the benefits of motor transport, while the remaining two-thirds do not have access to the convenience of automotive transport. Huge growth is in store for our industry in the emerging economies. Therefore, tremendous potential exists for quantitative expansion.

In addition, there is also room for qualitative growth, for adding value and improving the quality of the driving experience. Along with continuing initiatives to improve conventional vehicle functions, two major opportunities, already emerging, are intelligent transportation systems, ITS, and in-vehicle mobile terminals. ITS will route traffic more smoothly, reduce the risk of accidents, and make cars more fun to drive. Mobile terminals will bring a major leap forward in the types of information drivers and passengers can access on the road.

In view of this growth potential, we will continue to place emphasis on maintaining our position as a leading automobile manufacturer.

Toyota Key Dates:

1918: Sakichi Toyoda establishes Toyota Spinning & Weaving Co., Ltd.1933: Automobile Department is created within Toyoda Automatic Loom Works.1935: First Model A1 passenger car prototype is completed.1937: Toyota Motor Co., Ltd. is formed.1950: Toyota Motor Sales Co., Ltd. is established.1956: Toyota creates the Toyopet dealer network.1957: Toyota Motor Sales, U.S.A., Inc. is formed.1962: Toyota Motor Thailand Co., Ltd. begins operations.1982: Toyota Motor Company and Toyota Motor Sales merge to form Toyota Motor Corporation.1995: Hiroshi Okuda becomes company president.1997: The Prius, Toyota’s first ‘eco-car,’ is launched.1998: Toyota acquires majority share in Daihatsu Motor Co., Ltd.

Toyota Company History: Toyota Motor Corporation was Japan’s largest car company and the world’s third largest by the year 2000. The company was producing almost five million units annually in the late 1990s and controlled 9.8 percent of the global market for automobiles. Although its profits declined substantially during the global economic downturn of the early 1990s, Toyota responded by cutting costs and moving production to overseas markets. The company represented one of the true success stories in the history of manufacturing, its growth and success reflective of Japan’s astonishing resurgence following World War II.

The Emergence of Japanese Automobile Manufacturing in the 1930s and 1940s

In 1933 a Japanese man named Kiichiro Toyoda traveled to the United States, where he visited a number of automobile production plants. Upon his return to Japan, the young man established an automobile division within his father’s loom factory and in May 1935 produced his first prototype vehicle. General Motors and Ford already were operating assembly plants in Japan, but U.S. preeminence in the worldwide automotive industry did not deter Toyoda.

Since Japan had very few natural resources, the company had every incentive to develop engines and vehicles that were highly fuel efficient. In 1939, the company established a research center to begin work on battery-powered vehicles. This was followed in 1940 by the establishment of the Toyoda Science Research Center (the nucleus of the Toyota Central Research and Development Laboratories, Inc.) and the Toyoda Works (later Aichi Steel Works, Ltd.). The next year Toyoda Machine Works, Ltd. was founded for the production of both machine tools and auto parts.

As Japan became embroiled in World War II, the procurement of basic materials for automobile manufacturing became more and more difficult. At one point Toyoda was manufacturing trucks with no radiator grills, brakes only on the rear wheels, wooden seats, and a single headlight. Pushing toward the limits of resource conservation as the course of the war began to cripple Japan’s economy, the company started piecing together usable parts from wrecked or worn-out trucks in order to build ‘recycled’ vehicles.

When the war ended in August 1945 most of Japan’s industrial facilities had been wrecked, and the Toyoda (or Toyota as it became known after the war) production plants had suffered extensively. The company had 3,000 employees but no working facilities, and the economic situation in Japan was chaotic. But the Japanese tradition of dedication and perseverance proved to be Toyota’s most powerful tool in the difficult task of reconstruction.

Postwar Challenges and Innovations: The Birth of the Small Car

Just as the Japanese motor industry as a whole was beginning to recover, there was mounting concern that American and European auto manufacturers would overwhelm the Japanese market with their economic and technical superiority. Japan’s automakers knew that they could no longer count on government protection in the form of high import duties or other barriers as they had before the war.

Since American manufacturers were concentrating their efforts on medium-sized and larger cars, Toyota’s executives thought that by focusing on small cars the company could avoid a head-on market confrontation. Kiichiro Toyoda likened the postwar situation in Japan to that in England. ‘The British motorcar industry,’ he said, ‘also faces many difficulties, but its fate will be largely determined by how strongly American automakers feel they should concentrate on small cars.’ It was January 1947 when Toyota engineers completed their first prototype for a small car: its chassis was of the backbone type (never used before in Japan), its front suspension relied primarily on coil springs, and its maximum speed was 54 miles per hour. After two years of difficulties the company seemed headed for success.

This was not to be accomplished as easily as expected, however. Two years later, in 1949, Toyota suffered its first and only serious conflict between labor and management. Nearly four years had passed since the end of the war, but Japan’s economy was still in poor shape: goods and materials of all kinds were in short supply, inflation was rampant, and people in the cities were forced to trade their clothing and home furnishings for rice or potatoes to survive. That year the Japanese government took measures to control runaway inflation in ways that severely reduced consumer purchasing power and worsened the already severely depressed domestic automotive market. Japanese auto manufacturers found themselves unable to raise the funds

needed to support their recovery efforts, for the new governmental policy had discontinued all financing from city banks and the Reconstruction Finance Corporation.

Under these conditions the company’s financial situation deteriorated rapidly. In some months, for example, the company produced vehicles worth a total of ¥350 million while income from sales reached only ¥250 million. In the absence of credit sources to bridge the imbalance, Toyota soon was facing a severe liquidity crisis. In large part because of wartime regulations and controls, Toyota had come to place strong emphasis on the production end of the business, so that in the early postwar years not enough attention had been paid to the proper balance between production and sales. The Japanese economy at that time was suffering from a severe depression, and because the Toyota dealers were unable to sell cars in sufficient quantities, these dealers had no choice but to pay Toyota in long-term promissory notes as inventories kept accumulating.

Finally, Toyota was unable to meet its regular payroll. Delayed payments were followed by actual salary reductions and then by plans for large-scale layoffs–until April 1949, when the Toyota Labor Union went on strike. Negotiations between labor and management dragged on with the union leaders bitterly opposed to any layoffs. As a result, Toyota was compelled to reduce both production and overhead. Workers staged demonstrations to press their demands, and all the while Toyota kept falling further into debt, until the company finally found itself on the verge of bankruptcy.

Production dropped to 992 vehicles in March 1949, to 619 in April, and to 304 in May. Crucial restructuring efforts included a proposal to incorporate Toyota’s sales division as a separate company, leading eventually to the formation of Toyota Motor Sales Company Ltd. in April

1950. Toyota Motor Sales Company handled all domestic and worldwide marketing of Toyota’s automotive products until July 1982, when it merged with Toyota Motor Company.

In the meantime, discussions between labor and management finally focused on whether to admit failure, declare bankruptcy, and dissolve the company, or to agree on the dismissal of some employees and embark upon a rebuilding program. In the end management and labor agreed to reduce the total workforce from 8,000 to 6,000 employees, primarily by asking for voluntary resignations. At the management level, President Kiichiro Toyoda and all of his executive staff resigned. Kiichiro, Toyota’s founder and a pioneer of the Japanese automotive industry, died less than two years later.

Not long after the strike was settled in 1950, two of the company’s new executives, Eiji Toyoda (now chairman of Toyota Motor Corporation) and Shoichi Saito (later chairman of Toyota Motor Company), visited the United States. Seeking new ideas for Toyota’s anticipated growth, they toured Ford Motor Company’s factories and observed the latest automobile production technology. One especially useful idea they brought home from their visit to Ford resulted in Toyota’s suggestion system, in which every employee was encouraged to make suggestions for improvements of any kind. On their return to Japan, however, the two men inaugurated an even more vital policy that remained in force at Toyota through the 1990s: the continuing commitment to invest in only the most modern production facilities as the key to advances in productivity and quality. Toyota moved quickly and aggressively in the 1950s, making capital investments in new equipment for all of the company’s production facilities. Not surprisingly, the company began to benefit from the increased efficiency almost immediately.

Along with improvements in its production facilities, Toyota also worked to develop a more comprehensive line of vehicles to contribute toward the growing motorization of Japanese society. During 1951, for example, Toyota introduced the first four-wheel-drive Land Cruiser. Moreover, as the domestic demand for taxis rapidly increased, production of passenger cars also rose quickly, from 50 units per month to 250 units per month by 1953.

In production control, Toyota introduced the ‘Kanban’ (or ‘synchronized delivery’) system during 1954. The idea was derived from the supermarket system, where ‘consumers’ (those in the later production stages) took ‘products’ (parts) from the stock shelves, and the ‘storekeepers’ (those in the earlier production stages) replenished the stock to the degree that it was depleted. The Kanban system became the basis for Toyota’s entire production system.

By the early 1950s, just as Toyota had anticipated, the Japanese market was crowded with vehicles from the United States and Europe. It soon became apparent that to be competitive at home and abroad, Toyota would not only have to make additional investments in manufacturing facilities and equipment, but also undertake a major new research and development effort. This was the reasoning behind Toyota’s decision in 1958 to build a full-scale research center for the development of new automobiles (which also was to become Japan’s first factory devoted entirely to passenger-car production). Toyota also began to offer a more complete line of products. Beginning with the Crown model, introduced in 1955, Toyota quickly expanded its passenger-car line to include the 1,000-cubic-centimeter Corona, then added the Toyo-Ace (Japan’s first cab-over truck) and a large-sized diesel truck.

Throughout these years Toyota also was working hard on another important, if less conventional, approach to adapting itself to the rapid motorization of Japan, brought about by a remarkable increase in national income. When, for example, Toyota Motor Sales was capitalized at ¥1 billion, 40 percent of that amount (¥400 million) was immediately invested to establish an automobile driving school in an effort to help citizens acquire driver’s licenses. Through this and similar efforts, Toyota made a major contribution to Japan’s growing motorization in the years following 1965, a trend that was to lead to a mass domestic market for automobiles.

In 1955, ten years after its defeat in World War II, Japan became a member of the General Agreement on Tariffs and Trade (GATT); but automobiles remained one of Japan’s least competitive industries in the international arena. Toyota, foreseeing the coming age of large-scale international trade and capital liberalization in Japan, decided to focus on lowering its production costs and developing even more sophisticated cars, while at the same time attempting to achieve the highest possible level of quality in production. This was a joint effort conducted with Toyota’s many independent parts suppliers and one that proved so successful that ten years later, in 1965, Toyota was awarded the coveted Deming Prize for its quality-control achievements. That was also the year that the Japanese government liberalized imports of foreign

passenger cars. Now Toyota was ready to compete with its overseas competitors–both in price and quality.

In subsequent years Japan’s gross national product expanded rapidly, contributing to the impressive growth in auto sales to the Japanese public. The Toyota Corolla, which went on sale in 1966, quickly became Japan’s most popular family car and led the market for autos of its compact size. Toyota continued to make major investments in new plants and equipment to prepare for what it believed would be a higher market demand. In 1971 the government removed controls on capital investment. In the wake of this move, several Japanese automakers formed joint ventures or affiliations with U.S. automakers.

Two years later, the 1973 Middle East War erupted and the world’s economy was shaken by the first international oil crisis. Japan, wholly dependent upon imports for its oil supply, was especially affected. The rate of inflation increased and demand for automobiles fell drastically. Yet, in the face of the overall pessimism that gripped the industry and the nation, Toyota’s chairman Eiji Toyoda proposed a highly aggressive corporate strategy. His conviction was that the automobile, far from being a “luxury,” had become and would remain a necessity for people at all levels of society. As a result, Toyota decided to move forward by expanding the company’s operations.

The 1973 oil crisis and its aftermath were valuable lessons for Toyota. The crisis demonstrated the necessity for a flexible production system that could easily be adapted to changes in consumer preferences. For example, Toyota did away with facilities designed exclusively for the production of specific models and shifted instead to general-purpose facilities that could be operated according to changes in market demand for the company’s various models.

Toyota Environmental Awareness in the 1970s

In December 1970 the U.S. Congress passed the Muskie Act, which set limits on automobile engine emissions. In the United States the enforcement of this law was eventually postponed, but in Japan even stricter laws were promulgated during the same time with no postponement of

enforcement deadlines. When the Muskie Act was first proposed, automakers all over the world were opposed to it. They argued that it would actually prohibit the use of all internal combustion engines currently used, and they requested that the enforcement of the law be postponed until new technology, able to meet the law’s requirements, could be developed.

Notwithstanding these developments, Toyota moved forward on its own to develop a new generation of cleaner and more fuel-efficient engines. After studying all the feasible alternatives–including catalytic systems, rarefied combustion, rotary engines, gas turbine and battery-powered cars–Toyota settled on the catalytic converter as the most flexible and most promising and succeeded in producing automobiles that conformed to the world’s toughest emissions-control standards. (Meanwhile, imported cars were given a three-year grace period to conform to Japan’s strict emissions-control standards.)

International Growth in the 1980s

In 1980 Japan’s aggregate automobile production was actually better than that of the United States. In the same year, Toyota ranked second only to General Motors in total number of cars produced. Although Toyota made efforts over the years to improve the international cooperation between automakers, in such ways as procuring parts and materials from overseas manufacturers, Japan’s successes in the world auto market nonetheless resulted in the Japanese automobile industry becoming a target of criticism.

Shoichiro Toyoda, president of Toyota during the middle and late 1980s, possessed a solid understanding of American culture. Toyoda reportedly believed that Toyota’s future success depended in part on the way it handled public relations with the United States, a nation that he perceived to be extremely bitter about losing trade battles with Japanese industry. By means of intense advertising and controlled public relations under Toyoda’s direction, Toyota tried to elevate the principle of free competition in the minds of the American people. At the same time, Toyoda carefully committed his company to greater international cooperation in both technological and managerial areas.

In 1984, for example, Toyota entered into a joint manufacturing venture with American giant General Motors called New United Motor Manufacturing, Inc. (NUMMI). This state-of-the-art facility allowed Toyota to begin production in the United States cautiously at a time of increasing protectionism, as well as learn about American labor practices. At the same time, it provided General Motors with insight into Japanese production methods and management styles.

The plant was slated to build up to 50,000 vehicles a year. In the fall of 1985, moreover, Toyota announced that it would build an $800,000 production facility near Lexington, Kentucky. The plant, which was expected to begin assembling 200,000 cars per year by 1988, created approximately 3,000 jobs.

By the end of the 1980s, Toyota’s position as a powerful, exceptionally well-run car company was nearly unassailable. After a decade of prodigious growth, the company stood atop the Japanese automobile industry and ranked number three worldwide, a position it had held since 1978 and strengthened in the ensuing years. By the beginning of the 1990s, Toyota commanded an overwhelming 43 percent of the Japanese car market, and in the United States it sold, for the first time, more than one million cars and trucks. Aside from these two mainstay markets, Toyota was solidifying its global operations, particularly in Southeast Asia, and carving new markets in Latin America, where the burgeoning demand for cars promised much growth. Toyota also spearheaded the Japanese automobile industry’s foray into the luxury car market, leading the way with its Lexus LS400 luxury sedan, which by the mid-1990s was outselling market veterans BMW, Mercedes-Benz, and Jaguar.

Despite these favorable developments, all of which pointed toward further growth and underscored the car company’s vitality, Toyota’s management continued to strive for improvements. In 1990, for example, when the company was posting enviable financial results and its manufacturing processes provided a model for other companies to follow, Shoichiro Toyoda eliminated two layers of middle management, effected substantial cuts in the company’s executive staff, and reorganized Toyota’s product development. With the highest operating margin of any carmaker in the world, Toyota was a formidable competitor.

Toyota had little control over external forces, however, and as the 1990s progressed, a global economic downturn brought the prolific growth of Japan’s largest car manufacturer to a halt. The recession stifled economic growth throughout the world, while a rising yen made Japanese products relatively more expensive in overseas markets. Toyota’s profits declined for four consecutive years between 1991 and 1994, falling to the lowest level in more than a decade. Midway through Toyota’s net income slide, the company gained new leadership when Totsuro Toyoda succeeded his brother in September 1992. Under Totsuro Toyoda’s stewardship, a cost-cutting program was enacted that reduced expense account budgets 50 percent, limited travel expenditures, and eliminated white-collar overtime. Toyoda also continued the trend toward moving production to less expensive overseas markets by ordering the construction or expansion of six assembly plants in Great Britain, Pakistan, Thailand, Turkey, the United States, and Japan.

As Toyota’s profit decline continued, however, the mounting losses persuaded Toyoda to intensify his cost-cutting measures. Design changes in the company’s vehicles coupled with reductions in manufacturing and distribution costs saved Toyota ¥150 billion in 1993, and another ¥100 billion in savings was expected to be realized in 1994. That same year, the fourth consecutive year of negative net income growth, Toyota recorded ¥125.8 billion in consolidated net income, a little more than a quarter of the total posted in 1990, when the company earned ¥441.3 billion.

“The New Global Business Plan”: 1995 and Beyond

When Hiroshi Okuda was promoted to company president in 1995 his chief ambition was to revitalize Toyota’s standing in the global marketplace. In June he unveiled Toyota’s New Global Business Plan, which placed renewed focus on innovation and international expansion. Okuda’s targets were clearly defined: to raise production to six million vehicles a year; to increase Toyota’s international market share to 10 percent; and to increase its share of the domestic market to 40 percent. He believed the first two goals would be achieved through the construction of new manufacturing plants in foreign markets, along with an increased emphasis on the “localization” of parts production. The purpose of localization was to reduce the time and expense involved with shipping components across great distances, enabling Toyota to increase its overall automobile production and devote greater resources to research and development. By widening the scope of operations in Toyota’s overseas locations, Okuda envisioned a more streamlined, cost-effective manufacturing process. Furthermore, the stimulation of local economies was an effective public relations tool, enhancing the value of the Toyota brand name in foreign markets.

Okuda wasted no time putting his vision into practice. In 1995 Toyota announced its intention to set up a manufacturing operation in Indiana, in the hope of becoming a major participant in North America’s highly competitive large truck market. In 1997 the company opened new plants in Canada and India, and in December it announced plans to build a second European plant in Valenciennes, France, to begin production of a new line of cars specifically designed for the European consumer. The year 1997 also saw increased production in Toyota’s Thailand operations, with a total output of 240,000 vehicles. In 1998 the company also raised its export levels from the Thailand plants to 20,000 units, with

most of the vehicles destined for the Australian and New Zealand markets. That same year, the company opened a new operation in Brazil, and in 1999 it began construction of a transmission production plant in the Walbrzych Special Economic Zone in Poland, which would begin exporting the parts to Toyota’s manufacturing centers in France, Turkey, and the United Kingdom by 2002.

One of the most promising automobile markets to open up in the late 1990s was in China. By March 1998 Toyota already had stakes in four Chinese parts manufacturing plants, one of them a wholly owned subsidiary. The company took a more significant step in November 1998, when it established the Sichuan Toyota Motor Co., Ltd., Toyota’s first vehicle production plant in China. A joint venture with the Sichuan Station Wagon Factory and Toyota Tsusho Corp., the new plant was scheduled to begin manufacturing coaster-class buses by 2001.

Okuda also assumed an aggressive approach to Toyota’s role in the domestic market. In late 1996 he made drastic cuts to Toyota’s vehicle prices in Japan, a move that incensed the competition. In August 1998 Toyota extended its hold over the domestic market with the purchase of a majority stake in Daihatsu. The company also implemented a number of environmental initiatives during this period, both at home and abroad. In July 1999 it inaugurated an initiative that aimed to eliminate all landfill waste by 2003, and in 2000 it introduced stricter environmental regulations in its U.S. manufacturing plants, which actually went beyond the current EPA standards.

One of the most radical innovations to arise from Okuda’s revolution was the Prius, Toyota’s first hybrid car. Launched in October 1997, the Prius combined a highly efficient gas engine with a self-regenerating electric motor, reducing carbon dioxide emissions by half. Although initial estimates showed that production would have to surpass 200,000 vehicles a year for the Prius to turn a profit, by March 1998 demand was already

surpassing supply, and the future of the eco-car on the domestic market looked promising. Prius finally hit the U.S. and European markets in late 2000, amid increased fuel prices and mounting concerns over global warming.

Although a weakened euro caused Toyota to suffer losses in Europe toward the end of the 1990s, the new operation in France, scheduled to begin production in 2001 at a rate of 150,000 vehicles a year, was expected to reverse this trend. The company also experienced strong sales in the United States and Japan during this time, and in 2000 Toyota’s total worldwide production exceeded five million vehicles for the first time ever.

Principal Subsidiaries: Toyota Motor Sales, U.S.A., Inc.; Toyota Motor Thailand Company Limited; Daihatsu Motor Co., Ltd. (51%); New United Motor Manufacturing, Inc. (U.S.A.; 50%); Toyota Motor Credit Corporation (U.S.A.); Hino Motors, Ltd.

Principal Competitors: Ford Motor Company; General Motors Corporation; Honda Motor Co., Ltd.

SWOT Analysis ToyotaThis SWOT analysis is about Toyota.

Strengths.

New investment by Toyota in factories in the US and China saw 2005 profits rise, against the worldwide motor industry trend. Net profits rose 0.8% to 1.17 trillion yen ($11bn; £5.85bn), while sales were 7.3% higher at 18.55 trillion yen. Commentators argue that this is because the company has the right mix of products for the markets that it serves. This is an example of very focused segmentation, targeting and positioning in a number of countries.

In 2003 Toyota knocked its rivals Ford into third spot, to become the World's second largest carmaker with 6.78 million units. The company is still behind rivals General Motors with 8.59 million units in the same period. Its strong industry position is based upon a number of factors including a diversified product range, highly targeted marketing and a commitment to lean manufacturing and quality. The company makes a large range of vehicles for both private customers and commercial organizations, from the small Yaris to large trucks. The company uses marketing techniques to identify and satisfy

customer needs. Its brand is a household name. The company also maximizes profit through efficient manufacturing approaches (e.g. Total Quality Management).

Weaknesses

Being big has its own problems. The World market for cars is in a condition of over supply and so car manufacturers need to make sure that it is their models that consumers want. Toyota markets most of its products in the US and in Japan. Therefore it is exposed to fluctuating economic and political conditions those markets. Perhaps that is why the company is beginning to shift its attentions to the emerging Chinese market. Movements in exchange rates could see the already narrow margins in the car market being reduced.

The company needs to keep producing cars in order to retain its operational efficiency. Car plants represent a huge investment in expensive fixed costs, as well as the high costs of training and retaining labour. So if the car market experiences a down turn, the company could see over capapacity. If on the other hand the car market experiences an upturn, then the company may miss out on potential sales due to under capacity i.e. it takes time to accommodate. This is a typical problem with high volume car manufacturing.

Opportunities.

Lexus and Toyota now have a reputation for manufacturing environmentally friendly vehicles. Lexus has RX 400h hybrid, and Toyota has it Prius. Both are based upon advance technologies developed by the organization. Rocketing oil prices have seen sales of the new hybrid vehicles increase. Toyota has also sold on its technology to other motor manufacturers, for example Ford has bought into the technology for its new Explorer SUV Hybrid. Such moves can only firm up Toyota's interest and investment in hybrid R&D.

Toyota is to target the 'urban youth' market. The company has launched its new Aygo, which is targeted at the streetwise youth market and captures (or attempts to) the nature of dance and DJ culture in a very competitive segment. The vehicle itself is a unique convertible, with models extending at their rear! The narrow segment is notorious for it narrow margins and difficulties for branding.

Threats.

Product recalls are always a problem for vehicle manufacturers. In 2005 the company had to recall 880,00 sports utility vehicles and pick up trucks due to faulty front suspension systems. Toyota did not g ive details of how much the recall would cost. The majority of affected vehicles were sold in the US, while the rest were sold in Japan, Europe and Australia.

As with any car manufacturer, Toyota faces tremendous competitive rivalry in the car market. Competition is increasing almost daily, with new entrants coming into the market from China, South Korea and new plants in Eastern Europe. The company is also exposed to any movement in the price of raw materials such as rubber, steel and fuel. The

key economies in the Pacific, the US and Europe also experience slow downs. These economic factors are potential threats for Toyota.

LexusFrom Wikipedia, the free encyclopedia

For other uses, see Lexus (disambiguation).

Lexus

Type Division

Industry Automotive industry

Founded 1989

Founder(s) Eiji Toyoda

Headquarters Toyota, Aichi, Japan

Area served Worldwide

Key people

Kazuo Ohara (MO)

Vince Socco (VP, Asia Pacific)

Andy Pfeiffenberger (VP, EU)

Mark Templin (VP, U.S.)

Products Automobiles

Services Automotive financing

ParentToyota Motor Corporation (TYO: 7203)

(NYSE: TM)

Divisions F marque

Website

Lexus.com

Lexus.co.uk

Lexus.eu

Lexus.jp

Lexus is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. As of 2009, Lexus vehicles are officially marketed in over 70 countries and territories worldwide.[1] The Lexus marque has ranked among the ten largest Japanese global brands in market value.[2] The division's world headquarters are located in Toyota, Aichi, Japan, with operational centers in Brussels, Belgium, and Torrance, California, United States.

Lexus originated from a clandestine flagship sedan project that began in 1983. This effort developed into the original Lexus LS, which was the first vehicle to wear the Lexus marque upon its launch in 1989. In following years, Lexus added sedan, coupé, convertible, and SUV models. In 2005, a hybrid version of the RX crossover debuted, and additional hybrid models were

subsequently introduced to the Lexus lineup. In 2007, Lexus launched its F marque performance division with the arrival of the IS F sport sedan.

From the start of production, Lexus vehicles have been consistently produced in Japan, with manufacturing centered in the Chūbu and Kyūshū regions, and in particular at Toyota's Tahara, Aichi, Chūbu and Miyata, Fukuoka, Kyūshū plants. Assembly of the first Lexus built outside the country, the Ontario, Canada-produced RX 330, began in 2003. Following a corporate reorganization from 2001 to 2005, Lexus also operates its own design, engineering, and manufacturing centers, solely responsible for the division's vehicles.

Since the 2000s, Lexus has increased sales outside its largest market in the United States through an ongoing global expansion. The division inaugurated dealerships in Japan's domestic market in 2005, becoming the first Japanese premium car marque to launch in its country of origin.[3] Further debuts in Southeast Asia, Latin America, and other export regions have since followed. The division's lineup has also been expanded to reflect regional specifications in model and powertrain configurations.

Contents

[hide]

1 History o 1.1 1980s: The F1 project

1.1.1 Brand development 1.1.2 Launch

o 1.2 1990s: Growth and expansion o 1.3 2000s: Hybrids and F models o 1.4 2010s: Recent developments o 1.5 Global markets

1.5.1 Japan 1.5.2 Europe 1.5.3 Asia and Oceania 1.5.4 Latin America 1.5.5 Africa

2 Corporate affairs 3 Automobiles

o 3.1 Vehicle lineup o 3.2 F marque o 3.3 Nomenclature

4 Design and technology o 4.1 L-finesse

5 Production 6 Service 7 Motorsport 8 Marketing 9 See also

10 References o 10.1 Notes o 10.2 Bibliography

11 External links

[edit] History

[edit] 1980s: The F1 project

The first LS 400 flagship sedan debuted in 1989, introducing Lexus to the world.

In 1983, Toyota chairman Eiji Toyoda summoned a secret meeting of company executives, to whom he posed the question, “Can we create a luxury vehicle to challenge the world's best?”[4] This question prompted Toyota to embark on a top-secret project, code-named F1 (“Flagship” + “No. 1 vehicle”).[5] The F1 project, whose finished product was ultimately the Lexus LS 400, aimed to develop a flagship sedan that would expand Toyota’s product line, giving it a foothold in the premium segment and offering both longtime and new customers an upmarket product.[6] The F1 project followed the success of the Toyota Supra sports car and the premium Toyota Cressida models.[7] Both the Supra and Cressida were rear-wheel drive cars with a powerful 7M-GE / 7M-GTE engine . The opportunity for Japanese manufacturers to export more expensive models had arisen with the 1980s voluntary export restraints, negotiated by the Japanese government and U.S. trade representatives, restricting mainstream car sales.[8] In 1986, Honda launched its Acura marque in the U.S., influencing Toyota's plans for a luxury division.[9] Around the same time, Nissan would unveil plans to create its own premium brand, Infiniti, while Mazda also considered developing an upscale marque, to be called Amati.[10]

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market research on luxury consumers.[11] During that time, several F1 designers rented a home in Laguna Beach, California to observe the lifestyles and tastes of American upper class consumers.[11] Toyota’s market research concluded that a separate brand and sales channel were needed to present its new flagship sedan, and plans were made to develop a new network of dealerships in the U.S. market.[12]

[edit] Brand development

The grille of a Lexus IS, featuring the Lexus emblem.

In 1986, Toyota’s longtime advertising agency Saatchi & Saatchi formed a specialized unit, Team One, to handle marketing for the new premium brand.[9] Image consulting firm Lippincott & Margulies was hired to develop a list of 219 prospective names; Vectre, Verone, Chaparel, Calibre and Alexis were chosen as top candidates.[13] While Alexis quickly became the front runner (also associated with the Alexis Carrington character on the popular 1980s primetime drama Dynasty) and later morphed to Lexus,[13] the name has been attributed to the combination of the words "luxury" and "elegance,"[14] and another theory claims it is an acronym for "luxury exports to the U.S."[14] According to Team One interviews, the name has no specific meaning and simply denotes a luxurious and technological image.[13]

Just prior to the release of the first vehicles, database service LexisNexis obtained a temporary injunction forbidding the name Lexus from being used as they stated it might cause confusion.[15]

The injunction threatened to delay the division's launch and marketing efforts.[15] Upon reflection, a U.S. appeals court lifted the injunction, deciding that there was little likelihood of confusion between the two products.[15]

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."[16] The Lexus logo was developed by Molly Designs and Hunter Communications.[17]

[18] The final design for the Lexus logo featured a stylized “L” within an oval, and according to Toyota, was rendered using a precise mathematical formula.[13] The first teaser ads featuring the Lexus name and logo, designed by Team One, appeared at the Chicago, Los Angeles, and New York auto shows in 1988.[19]

[edit] Launch

In 1989, Lexus showcased the smoothness of its V8 engines by placing champagne glasses on the hood of a revving LS 400.

In 1989, after an extended development process involving 60 designers, 24 engineering teams, 1,400 engineers, 2,300 technicians, 220 support workers, around 450 prototypes, and over US$1 billion in costs, the F1 project was completed.[20] The resulting flagship, the Lexus LS 400, had a unique design that shared no major elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-wheel drive.[21][22] Testing locations for the LS 400 included the German autobahn.[23]

The LS 400 debuted in January 1989 at the North American International Auto Show in Detroit.[10] The following September, Lexus vehicles officially went on sale at a network of 81 new Lexus dealerships across the U.S.[24] The LS 400 was sold along with a smaller sibling, the Toyota Camry-based ES 250.[23] The launch of Lexus was heralded by a multimillion dollar advertising campaign in both television and print media.[25]

At its launch, the LS 400 was widely praised for its quietness, well-appointed and ergonomic interior, engine performance, build quality, aerodynamics, fuel economy, and value,[23][26] although it was criticized by some automobile columnists for derivative styling and a suspension regarded as too compromising of handling for ride comfort.[10][23] The LS 400 debuted at US$38,000 in the U.S. (in some markets, it was priced against mid-size six-cylinder Mercedes-Benz and BMW models)[27] and was rated by Car and Driver magazine as better than both the US$63,000 Mercedes-Benz 420 SEL and the US$55,000 BMW 735i in terms of ride, handling, and performance.[28] The LS 400 also won major motoring awards from publications including Automobile Magazine and Wheels Magazine.[29][30] Lexus' debut was generally regarded as a major shock to the European marques; BMW's and Mercedes-Benz's U.S. sales figures dropped 29% and 19%, respectively, with BMW executives accusing Lexus of dumping in that market.[28]

The SC 400 coupe became the third Lexus model to debut following the LS and ES sedans.

In December 1989, Lexus initiated a voluntary recall of all 8,000 LS 400s sold to date, based upon two customer complaints over defective wiring and an overheated brake light.[28] In a sweeping 20-day operation which replaced the parts on all affected vehicles, Lexus sent technicians to pick up, repair, and return cars to customers free of charge, and also flew in

personnel and rented garage space for owners in remote locations.[28] This response was lauded in media publications and helped establish the marque's early reputation for customer service.[31][32]

By 1989's end, 16,392 LS 400 and ES 250 sedans had been sold in the four months following the U.S. launch.[33] 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.[34] Following initial models, plans called for the addition of a sports coupe along with a redesigned ES sedan.[35]

[edit] 1990s: Growth and expansion

The ES 300 sedan arrived in 1991 and was the best-selling Lexus for most of the 1990s.

In 1990, during its first full year of sales, Lexus sold 63,594 LS 400 and ES 250 sedans in the U.S.,[36] the vast majority being the LS model.[36] That year, Lexus also began limited exports to the United Kingdom, Switzerland, Canada, and Australia.[23][37] In 1991, Lexus launched its first sports coupe, the SC 400, which shared the LS 400’s V8 engine and rear-wheel drive design.[35] This was followed by the second generation ES 300 sedan, which succeeded the ES 250 and became Lexus' top seller.[35] At the conclusion of 1991, Lexus had become the top-selling premium car import in the U.S.,[38][39] with sales reaching a total of 71,206 vehicles.[36] That year, Lexus ranked highest in J.D. Power and Associates' studies on initial vehicle quality, customer satisfaction, and sales satisfaction for the first time.[40] The marque also began increasing U.S. model prices past those of comparable American premium makes, but still below high-end European models;[39] by 1992, the LS 400's base price had risen 18% to nearly US$45,000.[41]

In 1993, Lexus launched the GS line, based on the Toyota Aristo, which had sold for two years prior in Japan.[35] The GS 300 sports sedan was priced below the LS 400 in the marque's lineup.[42] That same year, Lexus also became one of the first marques to debut a certified pre-owned program, with the aim of improving trade-in model values.[43] In 1994, the marque introduced the second generation LS 400, a complete redesign of its flagship model.[44] In May 1995, sales were threatened by the U.S. government's proposal of 100% tariffs on upscale Japanese cars in response to the widening U.S.-Japan trade deficit.[45] SUVs were exempt from the proposed sanctions.[46] Normal sales operations resumed by late 1995 when the Japanese auto manufacturers collectively agreed to greater American investments, and the tariffs were not enacted.[45]

The first RX 300 crossover SUV debuted in 1998.

In 1996, Lexus debuted its first sport utility vehicle, the LX 450.[47] The marque's plans for developing an SUV model had accelerated during the U.S.-Japan tariff discussions of 1995.[46] In 1998, Lexus added the first luxury-branded crossover SUV, the RX 300, and the second generation GS 300 and GS 400 sedans. The RX crossover targeted suburban buyers who desired an upmarket SUV but did not need the LX's off-road capability,[48] and was particularly successful. By year's end, the RX 300 had become the marque's top-selling model, ahead of the ES 300.[48] In 1999, Lexus recorded its one-millionth vehicle sold in the U.S. market,[38] and was ranked the top-selling premium car make in the U.S. overall.[48]

[edit] 2000s: Hybrids and F models

The RX 400h, the first hybrid version of Lexus' best-selling vehicle, debuted in 2005.

In 2000, Lexus introduced a new entry-level sedan, the IS 300. In 2001, the marque debuted its first convertible, the SC 430, and the third generation LS 430.[49] The GX 470 mid-size SUV debuted in 2002, followed by the second generation RX 330 in 2003.[50] In 2004, Lexus recorded its two-millionth U.S. vehicle sale.[51][52] The following year, Lexus debuted the first luxury-branded production hybrid SUV, the RX 400h.[53] The vehicle used a Lexus Hybrid Drive system which combined gasoline and electric motors for increased power, fuel efficiency, and lower emissions relative to gasoline-only equivalents.[54]

In 2005, Lexus completed an organizational separation from parent company Toyota, with dedicated design, engineering, training, and manufacturing centers working exclusively for the division.[55][56][57] This effort coincided with Lexus' launch in its home market of Japan and an expanded global launch of the brand in major world markets.[57] Executives aimed to grow the

marque's sales outside of its largest market in the U.S.[57][58] The next generation IS, GS, and LS sedans were subsequently designed as "global models" for worldwide markets.[59] In 2006, Lexus unveiled the GS 450h, a V6 hybrid performance sedan,[60] along with the fourth generation flagship LS line, comprising both standard- and long-wheelbase V8 (LS 460 and LS 460 L) and hybrid (LS 600h and LS 600h L) versions.[61] The LS 600h L subsequently went on sale as the most expensive sedan ever produced in Japan, with a sticker price of approximately US$125,000.[62] In 2006, Lexus sales reached 475,000 vehicles worldwide.[63]

The second generation Lexus IS line debuted in 2005, and an F-marque variant arrived in 2007.

In 2007, Lexus announced a new F marque performance division, which would produce racing-inspired versions of its performance models. The first of this line, the IS F, made its debut at the 2007 North American International Auto Show,[64] accompanied by a supercar concept, the LF-A. By the end of 2007, Lexus' annual U.S. sales had risen to 329,177 vehicles,[65] and total worldwide sales reached 500,000 vehicles.[66] In 2008, amidst the late-2000s recession, U.S. sales dropped 21% to 260,087,[67][68] and global sales fell 16% to 435,000,[69] affected by a weakened global luxury car market.[70] In mid-2009, the marque launched the HS 250h,[71] a dedicated hybrid sedan for North America and Japan, the RX 450h, the second generation hybrid SUV replacing the earlier RX 400h, and later that year debuted the US$375,000 production LFA exotic coupe.[72] In terms of volume, Lexus was the number-one-selling premium car marque in the historically largest automotive market for the past decade,[67][73][74] and ranked as the fourth-largest premium car make in the world by volume.[73]

[edit] 2010s: Recent developments

The CT 200h sportback premiered in 2010.

In the early 2010s, Lexus underwent a gradual sales recovery in North America and Asia as the marque focused on adding hybrids and new model derivatives.[75] Sales in the U.S. for the first half of 2010 held steady during the 2009–2010 Toyota vehicle recalls, several of which included Lexus models.[76] The ES 350 and certain IS models were affected by a recall for potentially jamming floor mats; the New York Times found more federal acceleration reports per-vehicle for the marque versus parent company Toyota, while NPR determined the reports to be generally rare, with comparable rates at multiple makes.[76][77] The redesigned GX 460 was also voluntarily recalled in April 2010 for a software update, one week after Consumer Reports issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow stability control response to a high-speed emergency turn.[78] Although the publication knew of no reported incidents, the GX 460 received updated stability control software.[78]

At the 2010 Geneva Motor Show, Lexus introduced the CT 200h, a compact four-door hybrid hatchback initially designed for the European market.[79] The CT 200h was scheduled to go on sale in Europe in the late 2010, with exports to follow in the U.S. and other regions worldwide.[79][80] In the latter half of 2010, Lexus expanded sales of lower-displacement regional models, beginning with the ES 240 in China followed by the RX 270; Japan, Russia, and Taiwan were among markets which received model variants intended for reduced emissions or import taxes.[81][82]

[edit] Global markets

As part of its global growth strategy, Lexus launched in Japan and China in 2005,[57][87] Malaysia in 2006,[88] Indonesia in 2007,[89] Chile in 2008,[90] and the Philippines in 2009.[91] In 2007, the largest sales markets in order of size were the U.S., Japan, the UK, China, Canada, and Russia.[63] Plans announced in 2006 called for an expansion from a total of 68 countries that year to 76 worldwide by 2010.[92]

[edit] Japan

Lexus' arrival in the Japanese market in July 2005 marked the first introduction of a Japanese premium car marque in the domestic market.[3] The IS, GS, and SC models became available in Japan in 2005. Sales were initially slower than expected,[93] but increased the following year.[94] In particular, the introduction of the LS 460 in September 2006 exceeded expectations, with over 12,000 orders in its first month on sale.[94] The dramatic price increase (from ¥1-million and up) on new Lexus models and the contraction of the domestic auto market affected initial sales.[94]

Total sales and production

Regional sales, 2009 Units

Japan[83] 28,167

Europe[84] 25,921

United States[74] 215,975

Type production, 2009 Units

Passenger vehicles 222,684

Crossover SUVs 96,610

Hybrid vehicles 60,625

Line production, 2009 Units

Japan production[85] 255,012

Canada production[86] 64,282

Total 319,294

The fourth generation LS 460/LS 600h was launched globally in 2006.

The marque's Japanese debut ended domestic sales of previous generation Toyota-equivalent models;[95] right-hand drive versions of the LS, SC, RX, IS, and GS were previously sold in Japan under Toyota's Celsior, Soarer, Harrier, Altezza, and Aristo nameplates, respectively. With next generation models, these nameplates were no longer used and new models realigned to Lexus Japan dealerships.[95] Lexus Japan's network of 143 new dealerships became profitable in 2007.[94] In 2009, the HS 250h became the marque's top-selling sedan in Japan.[96]

[edit] Europe

In the European market, Lexus has long struggled with smaller brand recognition; perceived lack of prestige compared to domestic premium brands; minor market share; and the absence of an independent dealership network during the 1990s.[97][98] After import quotas were relaxed in 1998, the marque remained a small player on the continent.[99] In 2005, Lexus announced plans to introduce its first hybrid and diesel vehicles and expand the number of dedicated dealerships in Europe.[100]

The GS 450h rear-wheel drive hybrid debuted in 2006.

In 2006, the newly introduced diesel IS 220d accounted for UK sales increases;[101] hybrids comprised a quarter of total sales and outsold their petrol counterparts.[63][101][102] The London congestion charge added incentive by initially excluding hybrid vehicles.[103] An emerging market for Lexus Europe has been Russia, where the marque ranked fourth in premium car sales in 2007,[104] and received its largest sales increases on the continent that year.[105] Total Europe sales increased 72% in 2006 to over 50,000 vehicles;[106] held flat in 2007, and dropped 27.5% in 2008.[107] In 2009, Lexus announced plans to become a hybrid-only marque in the UK.[108]

[edit] Asia and Oceania

In South Korea, with sales of the ES leading its lineup, Lexus ranked as the top-selling import make in 2005;[109] in Taiwan, Lexus also became the top-selling upscale car import in 2005.[110] In 2007, Lexus captured the import sales lead in the China's emerging premium car market,[111] which along with Russia saw higher per-dealership sales than any other region.[105] The number of Lexus dealerships in China expanded in the late-2000s,[112] and increased demand for SUVs contributed to sales growth.[113] China became the marque's second-largest sales market in 2009.[75] In the Middle East, Lexus has ranked in the top two of premium car sales,[75] and in Australia, Lexus reached third in market sales in the 2000s, with the RX model generating the greatest demand.[114][115]

The F marque Lexus LF-A concept premiered in 2007.

[edit] Latin America

Lexus officially launched sales in Brazil in January 1998,[116] making its debut in South America's most populous country. The Brazil model lineup has focused on the LS and ES sedans.[117] The marque has also been marketed in Costa Rica via regional distributor Purdy Motors S.A.,[118] with the country being one of the first in Central America to receive the brand. During the Santiago Auto Salon in 2006, Lexus officials announced plans to begin sales in Chile,[119] and in April 2008 the marque opened its first salesroom in Las Condes, Santiago, with models sold including the IS, GS, LS, SC, RX and LX vehicles.[119] In 2010, Chilean President Sebastián Piñera used an LS as his official state car, replacing various models used by former Presidents Michelle Bachelet and Ricardo Lagos.[120]

[edit] Africa

Lexus officially launched a standalone brand division in South Africa in January 2006,[121] expanding on import sales dating to 1993.[121] The Lexus model range in South Africa, sold via dealerships in the country's major metropolitan areas,[122] has since been directly targeted at the marque's German competitors.[121][123]

[edit] Corporate affairs

Fuji Lexus College, the training facility for Lexus dealers in Shizuoka, Japan.

As of 2011, coordination of worldwide Lexus Division product strategy involves Kazuo Ohara, managing officer, and Andrew Kirby, general manager, at the marque's global Product & Marketing Planning division.[124][125] Other executives at Lexus' global headquarters, located in Toyota City, Aichi, include Kiyotaka Ise, general manager of the Lexus Development Center, and Nobuyori Kodaira, managing officer of Lexus Japan Sales & Marketing.[126]

In the U.S., Lexus operations are headed by Mark Templin, group vice president and general manager of the U.S. Lexus Division, located in Southern California.[127] In Europe, Lexus operations are headed by Andy Pfeiffenberger, vice president of Lexus Europe, located in Brussels. Companion design facilities are located in Southern California[128] and central Japan,[129]

with the head design studio devoted entirely to Lexus models in Toyota City, Aichi.[129][130]

Financial data of Lexus operations are not disclosed publicly.[131] However, automotive analysts estimate that the Lexus Division contributes a disproportionate share of Toyota's profits, relative to its limited production and sales volume.[131] Interviews with retired division officials indicate that depending on sales volume, vehicle product development cycles, and exchange rates, Lexus sales have accounted for as much as half of Toyota's annual U.S. profit in certain years.[131] Division executives have employed pricing strategies aimed at sustaining profit margins rather than sales volume, with historically fewer price incentives than rival brands.[131] In 2006, Lexus entered Interbrand's list of the Top 100 Global Brands for the first time, with an estimated brand value of approximately US$3 billion annually.[132] In 2009, Interbrand ranked Lexus as Japan's seventh largest brand, between Panasonic and Nissan, based on revenue, earnings, and market value.[2]

[edit] Automobiles

[edit] Vehicle lineup

Further information: List of Lexus vehicles

The Lexus lineup includes five sedans, namely the compact IS and HS models, mid-size ES and GS models, and the full-size LS flagship, along with two convertibles, the IS C and SC. Three SUVs are produced, increasing in size from the crossover RX, the mid-size GX, to the full-size LX. Hybrid models include the CT hatchback, HS sedan, and variants of the GS, LS, and RX.[133]

The F marque line produces a variant of the IS sedan and the LFA coupe.[133]

[show]v · d · eLexus – global production model lineup

[edit] F marque

Main article: Lexus F

Emblem of the LexusF marque division.

In December 2006, Lexus announced its new F marque division.[64] The name refers to Flagship and Fuji Speedway in Japan, whose first corner, 27R, inspired the shape of the "F" emblem.[134] The first F badged vehicle, the Lexus IS F, developed by the marque's Vehicle Performance Development Division,[135] premiered at the North American International Auto Show in January, 2007.[64] Media reports suggested that the IS F sedan would be followed by a GS F sedan[136] and IS F coupe.[64] An earlier in-house tuning effort, the TRD-based L-Tuned, had offered performance packages on the IS and GS sedans in the early 2000s.[137] Automotive reviewers noted the F marque line as an effort to bolster Lexus' performance credentials and target rivals from Mercedes-Benz's AMG and BMW's M divisions.[64][138] Past SC and GS models had received favorable reactions from sport luxury buyers,[139] while other Lexus models had been characterized as favoring comfort over sporty road feel and handling, compared with European rivals.[140] In 2007, Lexus entered the IS F at the year's Specialty Equipment Market Association show, and also announced its F-Sport performance trim level and factory-sanctioned accessory line.[141] The second production F marque model, the LFA, debuted at the Tokyo Motor Show in 2009.[72] Motor Trend has reported that Lexus anticipates to release the GS F with the next generation GS around 2011.[142]

Lexus IS F and F-Sport models.

[edit] Nomenclature

Lexus production models are named alphanumerically using two-letter designations followed by three digits. The first letter indicates relative status in the Lexus model range (ranking),[143] and the second letter refers to car body style or type[143] (e.g. LS for 'luxury sedan'). The three digits indicate engine displacement in liters multiplied by a factor of one hundred (e.g. 350 for a 3.5 L engine).[143] A space is used between the letters and numbers. The same letter may be used differently depending on the model; 'S' can refer to 'sedan'[143] or 'sport'[144] (e.g. in LS and SC), while 'X' refers to 'luxury utility vehicle' or SUV.[143][145] On hybrids, the three digits refer to the combined gasoline-electric output.[54] For certain models, a lower case letter placed after the alphanumeric designation indicates powerplant type ('h' for hybrid, 'd' for diesel),[101] while capital letter(s) placed at the end indicates a class subtype (e.g. 'L' for long-wheelbase,[56] 'C' for coupe, 'AWD' for all-wheel drive). On F marque models, the two-letter designation and the letter 'F' are used with no numbers or hyphens (e.g. IS F).[101]

[edit] Design and technology

Lexus Remote Touch controller.

Lexus design has traditionally placed an emphasis on targeting specific vehicle development standards.[146] Since the marque's inception, design targets have ranged from aerodynamics and ride quality to interior ergonomics.[26][147] The backronym "IDEAL" ("Impressive, Dynamic, Elegant, Advanced, and Lasting") is used in the development process.[148] Each vehicle is designed according to approximately 500 specific product standards, known as "Lexus Musts," on criteria such as leather seat stitching.[149][150] Design elements from the marque's concept vehicle line, the LF series (including the 2003 LF-S and 2004 LF-C), have been incorporated in production models.[151][152]

Vehicle cabins have incorporated electroluminescent Optitron gauges,[153] SmartAccess, a smart key entry and startup system,[154] and multimedia features. Beginning with the 2010 RX and HS models, the Remote Touch system, featuring a computer mouse-like controller with haptic feedback, was introduced;[71][155] other models have featured touchscreen controls (through the

2009 model year) as a navigation screen interface.[154] In 1989, Lexus became among the first premium car marques to equip models with premium audio systems, in partnership with stereo firm Nakamichi.[156][157] Since 2001, optional surround sound systems are offered via high-end audio purveyor Mark Levinson.[157] For reduced cabin noise, the first LS 400 introduced sandwich steel plating,[153] and later models added acoustic glass.[158] In 2006, the LS 460 debuted the first ceiling air diffusers and infrared body temperature sensors in a car.[159][160] Telematics services include G-Book with G-Link in Asia and Lexus Enform in North America.[161]

The eight-speed automatic transmission in the Lexus IS F and LS 460 Sport.

In 2006, Lexus incorporated the first production eight-speed automatic transmission in an automobile with the LS 460,[159] and the gearbox was later adapted for the GS 460 and IS F models. Continuously variable transmissions, regenerative brakes, and electric motors have been used on all Lexus hybrid models.[54] In 2007, Lexus executives signaled intentions to equip further models with hybrid powertrains,[101] catering to demands for a decrease in both carbon pollution and oil reliance.[162] Hybrid models have been differentiated by separate badging and lighting technology; in 2008, the LS 600h L became the first production vehicle to use LED headlamps.[163]

Safety features on Lexus models range from stability and handling programs (Vehicle Stability Control and Vehicle Dynamics Integrated Management)[164] to backup cameras, swivel headlights, and sonar warning systems. The Lexus Pre-Collision System (PCS) integrates multiple safety systems.[164] In 2007, Lexus introduced the first car safety systems with infrared and pedestrian detection capabilities, lane keep assist, a Driver Monitoring System with facial recognition monitoring of driver attentiveness, and rear pre-collision whiplash protection, as part of the LS 460 PCS.[159] As a safety precaution, Lexus GPS navigation systems in many regions feature a motion lockout when the vehicle reaches a set speed; to prevent distraction, navigation inputs are limited, while voice input and certain buttons are still accessible. This safety feature has attracted criticism because passengers cannot use certain functions when the vehicle is in motion.[165] Pre-2007 models came with a hidden manufacturer override option,[166] and updated European models allow operation in motion.[167]

Lexus Hybrid Drive display at Toronto, Ontario, Canada.

Production models in development have included convertibles, crossovers, and dedicated hybrids.[168][169] Lexus officials have discussed the marque's production model usage of varying platforms.[170] The LS flagship uses a dedicated platform,[22] while the entry-level Lexus ES had been chided for being too similar to the Toyota Camry, its shared platform cousin, in both styling and powertrain design.[171] The Nürburgring test track in Germany has also seen Lexus prototype testing.[172]

[edit] L-finesse

See also: Lexus LF

Lexus introduced a new design language known as "L-finesse" with its LF series concepts and later with the 2006 Lexus GS.[173][174] L-finesse is represented by three Japanese kanji characters which translate as "Intriguing Elegance, Incisive Simplicity, and Seamless Anticipation".[174] Design characteristics, including a fastback profile, lower-set grille,[175] and the use of both convex and concave surfaces,[175] are derived from Japanese cultural motifs (e.g. the phrase kirikaeshi in arrowhead shapes).[176] While earlier Lexus models were criticized for reserved and derivative styling, and often mistaken for understated domestic market cars,[175] automotive design analyses described L-finesse as adding a distinctive nature and embrace of Japanese design identity.[173][174] Opinions varied for L-finesse's debut on the 2006 GS; Sports Car International's analysis praised the vehicle's in-person appearance;[177] Automobile Magazine criticized the daring of its forward styling,[178] and compared subsequent rival models for design similarities.[179] L-finesse exhibitions were presented at Milan's Salone del Mobile from 2005 through 2009.[180]

[edit] Production

Lexus models produced by the Tahara plant in Japan.

Many Lexus vehicles are manufactured in Toyota's flagship Tahara plant, a highly sophisticated, computerized manufacturing plant in Japan.[133][181] Lexus production techniques include methods and standards of quality control that differ from Toyota models.[182][183] At the Tahara plant, separate assembly lines were developed for Lexus vehicles,[182][184] along with new molds and specialized manufacturing equipment.[184] Welding processes, body panel fit tolerances, and paint quality requirements are more stringent.[182][185] Lexus plant workers, typically veteran technicians, are identified via repeated performance evaluations and ranked according to skill grade, with limited applicants accepted.[186] The highest level takumi (Japanese for "artisan") engineers are responsible for maintaining production standards at key points in the assembly process, such as testing engine performance.[56] Production vehicles are given visual inspections for flaws, individually test-driven at high speeds, and subjected to vibration tests.[182]

The North American–market RX 350 (since the 2004 model year) is produced in the city of Cambridge, in Ontario, Canada, which is the first Lexus production site located outside of Japan. In addition to the Tahara factory, Lexus vehicles have been produced at the Miyata plant (Toyota Motor Kyushu) in Miyawaka, Fukuoka, Higashi Fuji plant (Kanto Auto Works) in Susono, Shizuoka, and Sanage plant (Toyota Boshoku; Araco) in Toyota City, Aichi.[58][133] The Kokura plant in Kitakyūshū, Fukuoka, which opened in 2008, is a dedicated hybrid production site for Lexus models such as the gasoline-electric RX.[187] Front-wheel drive cars, such as the ES and HS, are produced in the Fukuoka Prefecture.[133] Through the late 2000s, most sedan and SUV production has occurred in Japan at the Tahara plant in Aichi and Miyata plant in Fukuoka.[58][133]

In 2005, J.D. Power and Associates bestowed its Platinum award for worldwide plant quality on the Tahara plant for the fourth consecutive year, stating that it has the fewest defects of any manufacturing plant in the world.[188] In 2006, J.D. Power named the Miyata plant, then the site of ES and IS model production, as its recipient of the Platinum award for worldwide plant quality,[189] and in 2009 the Higashi Fuji plant, site of SC production, received the same recognition.[190] J.D. Power has named Lexus the most reliable brand in the U.S. fourteen times since 1995,[191] according to its Vehicle Dependability Survey of over 53,000 vehicle owners and the first three years of ownership.[192][193] In the 2000s, Consumer Reports also named Lexus among the top five most reliable brands in its Annual Car Reliability Surveys of over one million vehicles across the U.S.[194][195]

[edit] Service

Showroom of a Lexus dealership in the U.S.

Lexus has become known for efforts to project an upscale image, particularly with service provided after the sale. The waiting areas in service departments are replete with amenities, ranging from refreshment bars to indoor putting greens.[196][197] Dealerships typically offer complimentary loaner cars or "courtesy cars" and free car washes,[197] and some have added on-site cafes and designer boutiques.[198][199] Service bays are lined with large picture windows for owners to watch the servicing of their vehicle.[200] In 2005, Lexus also began reserving parking lots at major sporting arenas, entertainment events, and shopping malls, with the only requirement for free entry being the ownership of a Lexus vehicle.[201] An online owner publication, Lexus Magazine,[202] features automotive and lifestyle articles and is published online monthly[203] and on a mobile site.[204]

Since 2002, Lexus has scored consecutive top ratings in the Auto Express [205] [206] and 76,000-respondent Top Gear customer satisfaction surveys in the UK.[207] Lexus has also repeatedly topped the 79,000-respondent J.D. Power Customer Service Index[208] and Luxury Institute, New York surveys in the U.S.[209] As a result of service satisfaction levels, the marque has one of the highest customer loyalty rates in the industry.[210] To improve customer service, employees are

Assembly sites by model[58][133]

Plant Owner Location Model(s)

Tahara Toyota Motor Corp. Tahara, Aichi Prefecture LS, GS, IS, GX

Kokura Toyota Motor Kyushu, Inc. Kitakyūshū, Fukuoka Prefecture CT, HS, RX

Miyata Toyota Motor Kyushu, Inc. Miyawaka, Fukuoka Prefecture ES, IS, RX

Motomachi Toyota Motor Corp. Toyota City, Aichi Prefecture LFA

Higashi Fuji Kanto Auto Works, Ltd. Susono, Shizuoka Prefecture SC

Sanage Toyota Boshoku Corp. Toyota City, Aichi Prefecture LX

Cambridge Toyota Canada, Inc. Cambridge, Ontario RX

instructed to follow the "Lexus Covenant," the marque's founding promise (which states that "Lexus will treat each customer as we would a guest in our home"),[211] and some dealerships have incorporated training at upscale establishments such as Nordstrom department stores and Ritz-Carlton hotels.[212]

Marketing

The Lexus 2054, a concept model produced for the film Minority Report.

From its inception, Lexus was advertised to luxury consumers using specific marketing strategies, with a consistent motif used for the marque's advertisements. Beginning in 1989, television ads were commonly narrated by film and television actor James Sloyan (who was the voice of "Mr. Lexus" from its launch),[231] and accompanied by vehicles that performed unusual stunts onscreen.[232] The first decade of commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless," "pursuit," and "perfection,"[233] while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera.[232] Newer ads have included descriptions of novel features,[234] or a narration of the events onscreen. Since 2001, an annual "December to Remember" campaign features scenes of family members surprising loved ones with the gift of a new Lexus.[235] In 2009, after twenty years of featuring James Sloyan, Lexus hired actor James Remar for ad voice-overs.[236] Adapted from the original 1989 version, the Lexus slogan is "The Pursuit of Perfection."

Industry observers have attributed Lexus' early marketing successes to higher levels of perceived quality and lower prices than competitors, which have enabled the marque to attract customers upgrading from mass-market cars.[6][28] A reputation for dependability, bolstered by reliability surveys, also became a primary factor in attracting new customers from rival premium makes.[237]

[238] Lexus has since grown to command higher price premiums than rival Japanese makes,[239] with new models further increasing in price and reaching the US$100,000+ ultra-luxury category long dominated by rival European marques.[240][241][242]

Lexus LFA Crystallised Wind, a full-size glass art model.

Automotive analysts have also noted Lexus' relative newcomer status as a marketing challenge for the brand,[243] although some have debated the requirement of a long history.[239][244] European rivals have marketed their decades of heritage and pedigree,[245] whereas Lexus' reputation rests primarily upon its perceived quality and shared history with parent company Toyota.[239] Several analysts have stated that Lexus will have to develop its own heritage over time by highlighting technological innovations and producing substantial products.[63][243]

Lexus' marketing efforts have extended to sporting and charity event sponsorships, including the U.S. Open tennis Grand Slam event from 2005 to 2009, and the United States Golf Association's U.S. Open, U.S. Women's Open, U.S. Senior Open, and U.S. Amateur tournaments since 2007.[246][247] Lexus has organized an annual Champions for Charity golf series in the U.S. since 1989.[248] Endorsement contracts have also been signed with pro athletes Andy Roddick, Annika Sörenstam, and Peter Jacobsen.[249]

[edit] See also