Lexus: Understanding the Incredible Transformation

What is going on at Lexus?

The brand affectionately referred to as the “Mercedes-Benz of Japan” no longer has anything to learn from its German rivals.  

• Also: Lexus LC 500h: The Hybrid Super-Coupe Hits Geneva
• Also: Lexus' LF-C2 Concept Showcased in Toronto

It’s not that Lexus was far behind in the past. In fact, the nickname was meant as a compliment. However, you can’t deny that even though Lexus products were always meticulously assembled, they were a little dull to drive. 

And driving pleasure, after all, is a major consideration for buyers of luxury vehicles. 

Today, Lexus products are a lot more exciting and offer markedly improved styling.

So, what’s behind the change? We had the chance to ask Jennifer Barron, Director of the Lexus Division in Canada. 

“You’ll never say ‘Lexus’ and ‘boring’ in the same sentence again.”

These words come straight from Akio Toyoda himself, the head honcho at Toyota and Lexus. 

When he took the helm of the family company in 2009, Mr. Toyoda made it clear that as a car enthusiast, he wanted to bring fun-to-drive products back to Toyota. 

At the time, people were skeptical about the claims made by the same man who brags about test driving the company’s vehicles himself. Everyone was sure it was nothing more than an empty promise. 

And yet, one year later, Lexus introduced the LFA, a limited-run supercar with a $500,000 price tag. However, because it took so long to hit the market and offered a performance level similar to the Nissan GT-R's for five times the price, Lexus actually lost money on each unit sold.  

The LFA was never designed to be a moneymaker. Its purpose was to prove what the brand was capable of. In short, it was a statement. 

The new cars that followed the LFA featured much more agressive styling, to the point that they stood out from their peers—thanks to direct inspiration from the LFA. 

As for driving pleasure, the brand continues to develop its line of high-performance F products, and offers F Sport packages for most of its models. 

Plus, if you look at what Lexus did with the LC 500 unveiled in Detroit, you realize that the brand is trying to gain a foothold in the very serious full-size luxury coupe category, where BMW and Mercedes-Benz occupy the top ranks. 

Does everyone like the change in philosophy?

Generally speaking, you can’t reorient a brand image without making waves. Jennifer Barron told us how the transformation was going at Lexus. To begin, we asked her about the brand’s values and whether they had changed in recent years. She told us that Lexus’ primary value was to offer clients a unique experience, starting as soon as they walk into dealerships. This, she said, hasn’t changed. It’s been the cornerstone of the company since it was first established. 

The brand’s other values include attention to detail, quality, reliability, styling and driving pleasure. 

These values are what attract clients to dealerships, said Barron, who also admits that the incursion into new segments, like the NX compact SUV, has also contributing to increased sales.

When we asked her what long-term Lexus clients thought about the brand’s sportier attitude, Barron explained that “Lexus offers a wide range of products, with something for all tastes. That’s why we have one of the best retention rates in the market.” 

By way of example, one of the vehicles that has changed the most is the RX. Once conservative, it’s now the ultimate example of Lexus’ new style. “People love it!” said Barron, citing internal surveys as her source. Naturally, there are sales figures to back up the claim. 

What does the future hold? 

There’s nothing complicated in Lexus’ future. Over the short and medium terms, Jennifer Barron hopes that people will associate Lexus with “innovative design” as well as the other virtues the brand strives for. 

Of course, Barron didn’t spill the beans on upcoming performance products, like an SUV that’s rumoured to be on par with the BMW X5 M. 

But she did confirm that Lexus is committed to its sporty products like the RC F and GS F, and the F Sport packages. 

In all, the transformation appears to be a success for Lexus, a brand that has boosted its fun factor while nonetheless maintaining outstanding quality, proven with great reliability stats.

Now, the ball is in the hands of its rivals and we’ll have to see how Lexus adjusts its game over the next 10 years.

• See the Lexus LC 500h shown at the Geneva Motor Show.
• Check out the Lexus LF-C2 Concept convertible.