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In 2005, Lexus completed a full organizational separation from parent company Toyota, with dedicated Lexus design, engineering, training, and manufacturing centers working exclusively for the luxury division. This effort coincided with the launch of Lexus in its home market of Japan and an expanded global launch of the brand in major world markets. Executives aimed to grow Lexus sales outside of the U.S. (U.S. sales comprised approximately 63.5% of global Lexus sales in 2007). The next-generation IS, GS, and LS sedans were subsequently designed as "global models" for worldwide markets. Lexus launched in China in 2005, Malaysia in 2006, Indonesia in 2007, and the Philippines in 2008. By 2007, Lexus was sold in 57 countries around the world.

Total worldwide Lexus sales reached 500,000 vehicles in 2007. That year, the largest Lexus sales markets (in order of size) were the U.S., Japan, the UK, China, Canada, and Russia. In 2008, sales growth was limited by a weakened luxury car market in major world regions, including North America, Asia, and Europe.

Japan

Lexus' arrival in the Japanese market on July 26, 2005 marked the first introduction of a Japanese luxury marque in the domestic market. The compact IS sedans, convertible SC, and midsize GS sedans became available in Japan in the 2006 model year. Sales were initially slower than expected but increased in 2007. In particular, the introduction of the LS 460 in September 2006 led to over 12,000 orders in its first month—several times expectations. Lexus Japan's network of 143 new dealerships became profitable in 2007. The debut of Lexus in Japan ended domestic sales of previous generation Toyota-equivalent models; right-hand drive versions of the LS, SC, RX, IS, and GS were previously sold in Japan under the (Toyota) Celsior, Soarer, Harrier, Altezza, and Aristo names, respectively. With new-generation models, the Celsior, Aristo, Harrier, Altezza, and Soarer names were no longer used and were realigned to Japanese Lexus stores.

Europe

In the European market, Lexus has long struggled with smaller brand recognition; perceived lack of prestige compared to Mercedes-Benz, BMW, Porsche, and Jaguar; minor market share; and the absence of an independent dealership network. In 2005, Lexus announced plans to introduce its first hybrid and diesel vehicles and expand the number of dedicated dealerships. In 2006, the newly introduced diesel IS 220d mainly accounted for sales increases in the United Kingdom; hybrids accounted for a quarter of total sales and outsold their petrol counterparts. The London congestion charge has added incentive by excluding hybrid vehicles. In 2006, 80% of all RX models sold in Europe were of the hybrid model. Total Lexus Europe sales increased 72% in 2006 to over 50,000 vehicles, held flat in 2007, and started dropping in 2008.

Russia and China

In 2007, Lexus vehicles in the emerging markets of Russia and China saw high demand, with higher per-dealership sales than any other market. That year, Lexus ranked fourth in Russian luxury sales and also captured the import sales lead in the emerging Chinese luxury car market. The number of Lexus dealerships in China expanded from 12 in 2005 to 23 in 2007; increased demand for luxury SUVs contributed to sales growth in the Chinese market.

Asia and Oceania

In South Korea, with sales of the ES spearheading its efforts, Lexus was ranked as the top-selling import in 2005; in Taiwan, Lexus also became the top-selling luxury import in 2005. In Australia, Lexus experienced high sales growth and ranked third in 2006 luxury import sales, with the IS model generating the greatest demand.

Corporate affairs

As of 2008, coordination of global Lexus Division product strategy involves Kiyotaka Ise, general manager of the Lexus Development Center in Japan. Ise, a managing officer in Toyota Motor Corporation's executive leadership, succeeded previous head Takeshi Yoshida, who was promoted to senior managing director on the Toyota board in June 2007. Other Lexus Japan executives include Yoichiro Ichimaru (senior managing director of Lexus Japan Sales & Marketing) and Toshio Furutani, managing officer at the Lexus Product & Marketing Planning Division.

In the United States, Lexus operations are headed by Mark Templin, group vice president and general manager of the U.S. Lexus Division. In Europe, Lexus operations are headed by Andy Pfeiffenberger, vice president of Lexus Europe.

Lexus Japan headquarters are located in Toyota City (Aichi, Japan). Companion Lexus design facilities are located in southern California and Toyota City, Japan.

Models

Current models

• IS: compact car RWD/AWD
  • 2009 IS 250/IS 250 AWD/IS 350/IS 220d/IS F/IS 250C/IS 350C
• ES: midsize FWD
  • 2009 ES 350/ES Pebble Beach Edition (U.S. only)
• GS: midsize RWD/AWD
  • 2009 GS 350/GS 350 AWD/GS 460
  • 2009 GS 450h
• LS: full-size RWD/AWD
  • 2009 LS 460/LS 460 AWD/LS 460 L/LS 460 L AWD
  • 2009 LS 600h/LS 600h L/LS 600h L Pebble Beach Edition (U.S. only)
• SC: coupé/coupé convertible RWD
  • 2009 SC 430
• RX: midsize crossover SUV
  • 2009 RX 350/RX 350 Pebble Beach Edition (U.S. and Canada only)
  • 2008 RX 400h
• GX: midsize sport utility vehicle
  • 2009 GX 470
• LX: full-size sport utility vehicle
  • 2009 LX 570

Production model history

• IS: compact RWD/AWD
  • 2000 IS 200/IS 300
  • 2006 IS 250/IS 250 AWD/IS 350/IS 220d
  • 2008 IS F
  • 2010 IS 250C/IS 350C
• HS: midsize (most likely) FWD
  • 2010 HS 250h
• ES: midsize FWD
  • 1990 ES 250
  • 1992 ES 300
  • 1997 ES 300
  • 2003 ES 330
  • 2007 ES 350

• GS: midsize RWD/AWD
  • 1993 GS 300
  • 1998 GS 300/GS 400
  • 2001 GS 430
  • 2006 GS 300/GS 300 AWD/GS 430/GS 450h
  • 2008 GS 350/GS 350 AWD/GS 460
• LS: full-size RWD/AWD
  • 1990 LS 400
  • 2001 LS 430
  • 2007 LS 460/LS 460 L
  • 2008 LS 600h/LS 600h L
  • 2009 LS 460 AWD/LS 460 L AWD
• SC: coupé/coupé convertible RWD
  • 1992 SC 300/SC 400
  • 2002 SC 430
• RX: midsize crossover SUV
  • 1998 RX 300
  • 2004 RX 330
  • 2006 RX 400h
  • 2007 RX 350
  • 2010 RX 350/RX 450h
• GX: midsize sport utility vehicle
  • 2003 GX 470
• LX: full-size sport utility vehicle
  • 1997 LX 450
  • 1999 LX 470
  • 2008 LX 570

Concept vehicles

• LF series concepts
  • 2003 LF-X: crossover
  • 2003 LF-S: luxury sedan
  • 2004 LF-C: convertible
  • 2005 LF-A: sports coupe
  • 2006 LF-Sh: hybrid luxury sedan
  • 2007 LF-Xh: hybrid crossover
  • 2008 LF-AR: roadster
• Past concept vehicles
  • 1994 Italdesign Lexus Landau: hatchback
  • 1995 Lexus FLV: minivan
  • 1997 Lexus Street Rod: roadster
  • 1997 Lexus SLV: sport luxury vehicle
  • 1997 Lexus HPS: sports sedan
  • 2003 Lexus IS 430: sports sedan

Design and technology

Lexus design has traditionally placed an emphasis on targeting specific luxury vehicle standards. Since the first Lexus LS, design targets have included aerodynamics, performance, smooth ride, interior ergonomics, quiet cabins, fuel efficiency, safety, and reliability. The acronym "IDEAL" (Impressive, Dynamic, Elegant, Advanced, and Lasting) is used in the development process. Each Lexus vehicle must fulfill over 500 specific product standards, known as "Lexus Musts," ranging from steering wheel responsiveness to leather-seat stitching.

In the vehicle cabin, Lexus has incorporated touchscreen navigation system interfaces

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