When shopping for a luxury vehicle, you’ll come across many prestigious automotive brands. But Lexus stands out as a relative newcomer to the high-end market. Given its rapid rise, some buyers wonder: is Lexus part of Toyota or an independent luxury automaker?
This article will examine the origins of the Lexus brand and its ongoing relationship with parent company Toyota Motor Corporation. We’ll outline how Lexus enables Toyota to compete in the luxury space while retaining its own identity.
Origins of the Lexus Brand
To understand Lexus, we first need to look at its launch in the late 1980s:
- Toyota wanted to crack the U.S. luxury car market dominated by German makes like Mercedes and BMW.
- They developed an all-new rear-wheel drive luxury sedan with a buttery smooth V8 engine dubbed the LS 400.
- Lexus was launched in 1989 as a standalone luxury division of Toyota, debuting with the LS flagship.
So Lexus originated as Toyota’s effort to challenge German prestige brands by launching a Japanese luxury marque.
Reasons for Creating a Separate Luxury Brand
Toyota decided to create Lexus as its own brand separate from the parent company for several strategic reasons:
- Luxury buyers prefer exotic sounding brands over mainstream names like Toyota.
- Dealership experiences need to be elevated for high-end buyers.
- Exclusive branding helps justify premium pricing over Toyota models.
- Insulates Toyota from any failures penetrating the luxury market.
- Freedom to design vehicles specifically for luxury buyers rather than mass-market.
Launching Lexus as a distinct luxury arm enabled Toyota to tailor the brand exclusively for competing with high-end European makes.
Lexus’ Ongoing Relationship with Toyota
While launched as a standalone luxury brand, Lexus still maintains close ties to parent company Toyota behind the scenes. This relationship includes:
- Ownership — Lexus is a wholly owned subsidiary of Toyota Motor Corporation.
- Leadership — Lexus executives report directly to Toyota leadership in Japan.
- Engineering — Lexus vehicles are engineered by Toyota’s development teams in Japan.
- Manufacturing — Most Lexus models are built alongside Toyota vehicles in Japanese factories.
- Quality Reputation — Lexus benefits from Toyota’s legendary build quality and reliability.
- Shared Technology — Some Lexus and Toyota vehicles share powertrains, safety systems, and platform architectures.
- Dealer Network — Some Toyota dealerships also include dedicated Lexus showrooms.
So while the Lexus brand is separate externally, it remains closely intertwined with Toyota behind the scenes. This provides resources while allowing autonomy.
Lexus’ Position Within Toyota’s Brand Hierarchy
Toyota owns multiple vehicle brands catering to different demographics. Lexus occupies the top position in their brand hierarchy:
Luxury Vehicles:
- Lexus — Flagship luxury vehicle division
Mainstream Brands:
- Toyota — Main brand spanning affordable to premium models
- Scion — Former youth-focused experimental marque, discontinued 2016
Subsidiaries:
- Daihatsu — Ultra-compact cars and off-roaders, Japan and Asia markets
So Lexus essentially serves as the prestige jewel in Toyota’s crown, showcasing cutting-edge luxury models with a reputation for unparalleled quality.
How Lexus Differs from Toyota Vehicles
While Lexus leverages Toyota’s prodigious resources, the brand also differentiates itself through:
- Exclusive Dealerships — Standalone Lexus showrooms focused on luxury experience versus Toyota’s mass-market dealers.
- Elevated Exteriors — Lexus design language aims for elegance with flowing lines versus Toyota’s pragmatic styling.
- Luxurious Interiors — Cabins use higher grade leathers, woods, and trim versus Toyota’s emphasis on practicality and value.
- Potent Powertrains — Lexus offers powerful V8s along with performance-tuned hybrid drivetrains unavailable from Toyota.
- Enhanced Refinement — Lexus vehicles set themselves apart with efforts to reduce noise and vibration to luxury car levels.
- More Standard Features — Lexus models come well-equipped versus Toyota’s à la carte packaging.
- Prestige Pricing — Lexus commands premium pricing starting around $35k and exceeding $100k for the flagship LS. Toyota tops out under $60k.
These efforts help justify Lexus’ positioning as a step above Toyota vehicles in terms of luxury, performance, and exclusivity.
Shared Lexus and Toyota Models
While Lexus clearly distinguishes itself from its parent, there are a few instances of badge engineering between the brands:
Lexus GX 460 and Toyota 4Runner
The mid-size Lexus GX 460 luxury SUV shares its underlying platform, powertrain, and capability with the Toyota 4Runner mid-size SUV. Lexus adds more premium design, materials, and features.
Lexus LX 570 and Toyota Land Cruiser
The Lexus LX 570 eight-passenger luxury SUV is the upmarket twin of the Toyota Land Cruiser off-road SUV. Again the Lexus version adds more luxury while maintaining the rugged capability.
Lexus RX and Toyota Highlander
Lexus’ best-selling RX luxury crossover is architecturally related to Toyota’s Highlander crossover SUV, with shared drivetrains and underpinnings.
So in select cases, Lexus does re-purpose proven Toyota truck platforms as the basis for luxury SUV models, while differentiating the exterior styling and interior materials.
Does Lexus or Toyota Have Better Reliability?
Given their shared engineering resources, Lexus and Toyota boast sterling reputations for dependability:
- Both brands rate well above average on reliability surveys like J.D. Power.
- Toyota has a track record spanning decades for building cars that last.
- Lexus benefits from sharing proven Toyota drivetrains and technologies.
- Stricter quality control for Lexus as a luxury marque.
However, Lexus does edge Toyota in some reliability rankings including Consumer Reports. Toyota makes cars for the mass market which see more variable treatment and maintenance. The pricier Lexus ownership experience tends to mean more diligent upkeep. So while both are exemplary, Lexus takes a slight lead.
Verdict: Lexus is Toyota’s Luxury Brand
In summary, Lexus was originally launched as a luxury brand under Toyota in order to compete with high-end European automakers. While Lexus operates independently, it leverages generous resources from its parent company Toyota while aiming to lead the luxury market in quality and reliability. This strategic relationship has allowed Lexus to establish itself as one of the preeminent luxury car brands within three decades of launch.
So is Lexus a Toyota brand? The answer is unequivocally yes — Lexus vehicles are engineered, manufactured and quality-controlled by Toyota Motor Corporation. Think of Lexus as Toyota’s luxury vehicle division showcasing cutting-edge innovations with painstaking refinement. This gives Lexus the best of both worlds — Toyota’s dependability paired with luxury amenities and prestige.
FAQs
What was the first Lexus model?
The first Lexus, launched in 1989, was the flagship LS 400 luxury sedan. It sent shockwaves through the industry with its silky smooth V8, quality and sophistication unprecedented for a Japanese luxury car.
Where are Lexus vehicles made?
Most Lexus vehicles are manufactured alongside Toyota models in factories in Japan. Some higher-volume Lexus SUVs like the RX are also produced at Toyota plants in Canada or the United States.
Does Lexus make their own engines?
No, Lexus engines from potent V8s to hybrid powertrains are all designed and produced by Toyota Motor Corporation. Lexus then tunes and pairs them to specific vehicles. Toyota’s prodigious engineering resources are a key Lexus advantage.
Why are Lexus vehicles more expensive than similar Toyotas?
Lexus models feature more premium materials, powerful drivetrains, and standard equipment versus Toyota equivalents. Exclusive dealerships and rigorous manufacturing quality standards also justify the higher Lexus pricing.
Will sharing parts hurt Lexus’ prestige versus German rivals?
Lexus limits platform sharing to a handful of luxury SUVs to contain costs. And proven Toyota underpinnings pay reliability dividends. Lexus’ sterling quality reputation suggests buyers don’t see it as a prestige liability. The pampering Lexus ownership experience also sets the brand apart.
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