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In the 1980s, Toyota, known for reliable but unexciting cars, embarked on an ambitious secret project codenamed "Circle F." Their goal was to create a luxury brand that could compete with established European and American manufacturers. This project led to the creation of the first Lexus LS 400 in 1989. The car was a technological marvel, offering superior quality, performance, and value compared to its competitors. It featured innovations like a silent cabin, smooth engine, and exceptional build quality.
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Lexus applied the Japanese principle of 'kaizen' (continuous improvement) to revolutionize car manufacturing. This philosophy was evident in every aspect of production, from design to assembly. For example, body panels were hand-sanded to ensure perfect smoothness, engines were balanced to unprecedented levels, and extensive measures were taken to reduce noise and vibration. Lexus engineers obsessed over details like the sound of closing doors and the feel of switches. This relentless pursuit of perfection helped Lexus quickly rise to the top of quality rankings!
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Creating Lexus required Toyota to bridge the gap between Japanese manufacturing principles and American luxury expectations. Extensive market research was conducted to understand what American luxury car buyers valued. This led to decisions like establishing a separate dealer network to provide a premium experience and designing cars that blended Japanese reliability with American tastes for size and comfort. The brand also had to navigate cultural differences in marketing and customer interaction.
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Lexus revolutionized customer service in the automotive industry, setting new standards for the entire sector. This was exemplified by their response to a minor recall in their first year: instead of asking customers to bring their cars to the dealership, Lexus picked up each affected vehicle, replaced it with a loaner, and returned it after repairs. This level of service was unheard of at the time. Lexus also reimagined the dealership experience, creating environments that felt more like luxury hotels than traditional car showrooms.
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The creation of Lexus had a profound impact on Toyota and the broader automotive industry. The high standards set for Lexus models pushed Toyota to improve quality across its entire range. Technologies and manufacturing techniques developed for Lexus often found their way into mainstream Toyota vehicles, elevating the entire brand. The success of Lexus also influenced how other manufacturers approached the luxury market, leading to the creation of new luxury divisions by companies like Nissan (Infiniti) and Honda (Acura).
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I believe that the vastness of the internet holds content that can aid each of you on your path to self-improvement. My hope is to curate and deliver this content to you, supporting your journey towards becoming a better version of yourself!
CURATOR'S NOTE
I love this book since I have always loved Japanese cars, and Lexus was a brand that I aimed to get when I grew up. It is nice to see the history behind their success.
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