Lexus wins freedom from Toyota shackles

Toyota’s luxury division Lexus will finally be let off its conservative corporate leash.

Twenty-two years after the brand was established to challenge prestige European brands, the boss of the company, Akio Toyoda, the third generation of the Toyoda family to run Toyota Motor Corporation, said he was going to give Lexus the freedom it needed to make the next step in its evolution.

At the unveiling of the new Lexus GS350 sedan at Pebble Beach earlier today, Mr Toyoda said:

“To accomplish [our next] goal we are doing something very different, something we have never done before. In fact, Lexus is leading the way in how the entire Toyota Motor Corporation should operate.

“Simply put, we have internationalised Lexus. We hand picked a team from all over the world to head up a new Global Lexus Division at [Toyota] and have combined engineering, design, and marketing all under one unit, separate from any other group.

“Working together with Lexus leaders from every major region across the globe, this group is responsible for key decisions on the, business, marketing, and future products, representing the voice of customers.”

Most importantly, however, the Lexus management will have a direct line to the boss, reporting to Toyoda himself.

“Since I am so passionate about the future of Lexus, I wanted to be personally involved,” he said. “So, there are no extra layers, this new division reports directly to me and I have given them autonomy over business decisions. This allows the team to react quicker to customers’ needs and desires. This internal process is unique from any other division at [Toyota] and I am very pleased with this new direction.”

Toyoda said all new Lexus models will be defined by design and driving dynamics, and that the GS was the first vehicle in that process.

But he also admitted that the GS almost did not get the go-ahead, following disappointing sales of the current model.

“I have to be honest with you,” he told the gathering. “Initially, I did not want to proceed with this project.

“But all the world markets were so passionate about it and told me, in a nice way, that I was crazy. They felt strongly about this car and fought for it, and their enthusiasm for the GS really moved me. So I agreed, but on one condition.

“The car had to be improved much more. It needed to be designed, engineered, and manufactured without compromise. I told our engineers that we are not moving ahead unless we do it right from the start.”

Lexus’ revitalization program will start next year, with nine new or updated models internationally, and at least three significant new-model releases in Australia, including the updated GS (due mid-year) and facelifts of the LS limousine and RX softroader, both due in the second half of the year.

The 55-year-old Toyoda, who took control of Toyota in 2009, said the main aim of Lexus was to become “the best, not the biggest” progressive luxury brand.

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