Lexus is one of the most popular car brands around the world, but the brand initially felt a bit left behind by its competitors. Honda and Nissan were creating and promoting luxury brand extensions with Acura and Infinity, respectively. With their newfound motivation to stay involved and compete, Toyota created its own luxury brand, branding it with the now iconic Lexus name and logo. If you have ever wondered who owns Lexus, this is the blog for you.
Lexus Timeline:
The service quality of the Lexus brand is unmatched, but that is not where the story of the luxury brand begins or ends. A brief history lesson on how Lexus came to be, as well as its ownership, is below.
Present Day
Let’s start with the present and then take a historical dive.
Depending on the model of vehicle you want to purchase from Lexus, they are being manufactured all over the world, including Canada, Japan, and the United States. There has also been a recent shift in
leadership, as Lexus made Koji Sato its new President and CEO.
Koji Sato
Born in 1969, Sato has been a part of the Lexus family for over 30 years. He became chief engineer in 2016, then was promoted again in 2017 and 2019 to eventually become the Vice President of Lexus International. Of course, that is not where the promotions stopped, as he was promoted again in 2023 to be the new CEO, effective April 1st of this year.
1983
Lexus was founded by Toyoda, the chairman of Toyota at the time. He stepped down as CEO of Toyota, and Shoichiro Toyoda was the new CEO and president of Toyota. At the time, Lexus launched 2 sedans, the Lexus LS400 and the Lexus ES250.
Eiji Toyoda
Born in 1913, Toyoda was surrounded by businesses and machines from a very young age. The original family business, before Toyota and Lexus, was actually Toyoda Automatic Loom Works in 1926. Because of that exposure, he studied mechanical engineering in college and graduated from Tokoyo Imperial University in 1936. He was named president of Toyota Motor Corporation in 1967, after working for the company for over 30 years. His 3 keys to success were quite simple.
- Keep inventory as low as possible
- Use as little human labor as possible
- Do things right the first time
1990
Lexus began working with exclusive dealers, rather than hitting the mass market all at once. The desire to have a Lexus would grow more with this business route.
1991
Began with 3 more models to hit the market, one of which was a sport model, SC300. Lexus also outsold both BMW and Mercedes-Benz in the United States in 1991.
1994
Eiji Toyoda retired from Toyota and Lexus, but kept it in the family, making Akio Toyoda the new president and CEO.
2000
Lexus became the sole leader for luxury cars in the United States, surpassing brands like
2003
Lexus opened an American plant for cars under the Lexus name, rather than importing all cars from Japan.
2005
There was a separation in 2005, resulting in two separate teams for manufacturing, design, engineering, and training. Though Toyota is the sole owner of Lexus, the two are manufactured by different teams, but under the same parent company. Lexus is based in Nagoya, Japan. Toyota is based in Toyota City, Japan, which is a short 40 min drive away.
2013
Toyoda passed away just a few days after turning 100 in Tokoyo.
Futuristic Planning
Lexus plans to be fully electric by 2035. This would mean their products would be solely electric. No hybrids, and no traditional fuel-burning vehicles. You can still buy used fuel-burning and hybrid vehicles, but the mass market will be solely electric.
Conclusion
Though Lexus is owned by Toyota, they have a history all their own. Now that you know the brand’s origin, you will have a better understanding when searching for your next luxury car.
