At one time, Toyota invested billions in the development of Lexus to conquer the American market. And despite this brand being extremely popular today, there is something that even its fans are unlikely to know. The Indy Auto Man Indianapolis used car dealer experts share Lexus success secrets that may change your vision of the brand.
1. It all started in Germany
The F1, or Lexus LS 400 as everyone knows it, debuted at the 1989 Detroit International Auto Show. But did you know that it was unveiled to the public a little earlier? That’s because by 1989, Lexus already had several headquarters scattered around the world, and one of them was in Cologne, Germany. They held a small media event before its triumphant debut in Detroit. Germany is the birthplace of luxury sedans Lexus was going to compete with, and Cologne is only a four-hour drive from where the Mercedes S-Class is assembled and a five-hour drive from where the BMW 7-series is produced. The LS 400 wasn’t intended for Germany, and Lexus had little reason to show the car before its big debut in Detroit. But the company wanted to make a statement by bringing the LS 400 to the home of Mercedes-Benz and BMW, one of the boldest moves ever made by a car brand. Lexus spent money, and it paid off.
2. The recall has improved Lexus’ reputation
These days, buyers have gotten used to Lexus ranking near the top of reliability charts. But its current reputation began with a recall that could have killed the brand. Lexus sold about 8,000 LS 400s in its first year, with a small percentage of owners reporting faulty alternator and battery connections, warped plastic on the rear brake light, and cruise control that didn’t always turn off properly. Instead of trying to hide the problem, Lexus took the opportunity to teach other manufacturers the art of customer service. It called all LS 400 owners and arranged a convenient time for them to have the problems fixed. As a bonus, the dealers washed the cars and filled the tanks. Lexus also rented space in service centers for owners who lived more than 60 miles from the nearest dealer and sent its technicians all over the U.S. So, instead of drowning, Lexus used an unpleasant situation to strengthen its reputation.
3. Lexus has built only one truly terrible car
Lexus debuted the second-generation SC at the 1999 Tokyo Motor Show. It looked great, and a sports coupe-convertible seemed like a good idea, given the brand’s market positioning. The recipe for a convertible sports car is pretty simple, as the Nissan 350Z, Mazda Miata, and BMW Z4 proved. The engine is up front, the seats and gearbox are in the middle, and the drive is to the rear wheels. However, the SC 430’s biggest problem was that Lexus didn’t understand what it was supposed to do, so they made a complete mess of the suspension. It rocked like an old Lincoln Navigator and became unpredictable over the smallest imperfections in the road surface. The 4.3-liter V8 produced only 288 horsepower, and the six-speed automatic was frankly weak, especially considering that the SC 430 weighed almost two tons. For some reason, Lexus installed a radio in the center console, which made no sense because CDs had already become the primary music source. But that’s not all. For the pleasure of owning such a car, Lexus wanted to receive $68,000. In its last year of sales, 2010, one could buy a top-of-the-line BMW Z4 for ten thousand dollars less. If a driver really wanted a Japanese car, the Honda S2000 was sold for half the price. Unsurprisingly, Lexus eventually abandoned the SC name entirely, replacing it with LC.
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