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16 answers

What a stupid answer - 1st response. Obviously they're asking because they don't know but WANT TO LEARN.

It's all about branding and marketing. It allows each section to remain somewhat independent from the other and go in separate directions. This strategy let's the company sell to different demographics while sometimes using the same core of their products.

2007-10-18 13:36:25 · answer #1 · answered by i_am_bocephus 3 · 4 1

Lexus is manufactured by Toyota just as Scion is as well. Some Lexus models are similar to its Toyota counterparts like the LX470 is to the Landcruiser. But other models do not have a toyota counterpart. These cars are manufactured to those that want the reliability of a toyota, but also want to pay a little more for the name and or extra luxury features they come with. As with a Scion you get the reliability of a Toyota at an even more affordable of a cost due to the cars being manufactured with not so many extras and getting a little retro of a look that is focused towards the younger generation that might not be too keen on driving the same commuter car as Dad would. Hope this helps. So its a personal preference on which one you get if you are debating on a vehicle that is badged toyota or lexus. If you like the look of the lexus badging go for it, if not don't. It will also decide what dealership you want to go to for service. Hope this helps.

2016-05-23 12:52:59 · answer #2 · answered by ? 3 · 0 0

Short answer: To break the Toyota public opinion of only being just everyday people's cars. To crack and enter into the luxury vehicle market and show that Toyota can produce reliable, sturdy yet luxurious and affluent vehicles.

Long answer: Yukiyasu Togo (head of Toyota Motor Sales USA in the early 90s) noticed how his friends and associates (all well-to-do executives) would rarely consider buying a Toyota. They felt that BMW and Mercedes were more their style and this did not sit well with Togo. He saw no reason why Toyota couldn't do the same as the Europeans and decided that they would crack into this market while shedding the conventional "workman image" of Toyota.

To do this, he needed a new sales channel and name. Long story short, Lexus was born through the refinement of existing Toyota platforms (first the Celsior which was upgraded and refined into the LS400). The goals of Lexus were to create a vehicle that was fast yet quiet, powerful yet fuel economical, sturdy yet light.

This yielded in the LS400 whose ads included the car running on rollers (so that the car would not physically move but the engine would run as if the car were) with a pyramid of champagne glasses on the hood. As the car sped up, the glasses would not fall.

Thus was born "The Pursuit of Perfection".

2007-10-22 11:46:52 · answer #3 · answered by Kevin W 2 · 0 0

A little thing called marketing....would you pay $70,000 for a Toyota? Most people wouldn't. So they created Lexus and built up that brand's reputation for reliable, quality luxury cars.
Same reason GM makes Cadillac and Ford makes Lincoln. It helps them broaden the market that they can sell to.
Toyota recently also went in the other direction by creating the Scion brand to capture more of the economy car market (General Motors tried to do this with Geo in the '90s but that ended up failing and Geo no longer exists).

2007-10-19 14:28:48 · answer #4 · answered by soupisgoodfood 4 · 1 0

The best way I've heard it explained goes like this:

Say you've got the Camry. It has a base price of about 19,000 dollars. But with options, you can bring the total price up to 45,000.

It's really hard to justify paying 45,000 for a Camry. But what if you divided the higher engine and luxury options and the lower engine and other options into two different cars, and arranged the options and pricing such that the two only just barely overlap?

Well, then you've got yourself the Lexus ES, which is a 33,000 base price car...it's much easier to justify spending up to 45,000 on that.

And you can still sell 19-30,000 dollar Camrys to the plebians.

It gets around problems of perceived value (particularly by people who won't realize that they're essentially the same car if you change the badges and a little bit of sheet metal) and enables you to sell the same car to more segments of the market.

Now, not all Lexuses are sold as Toyotas in the US. But they tend to be Toyota's high-end models. Putting a Lexus badge on those actually HELPS the sales of your low-end Lexus Camry/ES.

2007-10-18 13:58:09 · answer #5 · answered by Anonymous · 0 1

wow u must not now much about cars.well let me explain most car companies have a luxury line with it:
honda-acura
toyota-lexus
nissan-infiniti
ford-lincoln/mercury/jaguar
dogde/chrysler-mercedez
mini and bmw
gm-cadillac
and so on and so on
see look nobody would buy a toyota for the price of a lexus and anyways lexus is a complete luxury line while toyota is more of a basic to mid luxury line

2007-10-20 12:53:18 · answer #6 · answered by Speeding D 4 · 0 0

Look under the hood, some things are stamped "Toyota" on it . Fender panels, engine parts Toyota would have to raise some prices if they want people to buy more Toyotas marked Lexus ... Just like GM does. they a few car/trucks with all the same insides but a different name makes it a little more expensive. Escalade, Avalanche, Silverado, Sierra, toss a sheet over them and you won't be able to tell them apart.
Corvette and the XLR from Cadillac ...Same but the XLR costs way more!!!
Leads you to believe they can get more money out of you for a different name on it....

2007-10-18 14:12:11 · answer #7 · answered by Johnny 4 · 0 1

To sell cars. If you're in the market for a luxury car, do you want to pay $80k and say, "I have a Toyota"? No. Toyota created Lexus to compete with other luxury companies so you wouldn't be paying $80k for a Toyota, you'd be paying $80k for a Lexus. Most other luxury car companies have ties with your average everyday cars too. For example, Mercedes-Benz and Chrysler are the same company. MINI and BMW are the same, and Volkswagen and Audi are the same.

2007-10-18 15:12:04 · answer #8 · answered by Anonymous · 1 0

Years ago the US placed a limit on the number of Japanese cars that could be brought into the US. This was done for 2 reasons.
1. To encourage US buyers to consider buying US brand cars.

2. To react to Japan's decision not to buy as many american products. We buy more japanese products than they buy american prducts.

Toyota got around the quota by creating Lexus, Nissan created Infiniti, and Honda created Acura.

You will find that in many other parts of the world, the Acura Integra is called the Honda Integra. The Lexus SC is called the Toyota Soarer.

These changes were originally created to combat the import quota. Now these companies use it as an opportunity to provide the same cars with more luxury options.

2007-10-18 13:54:31 · answer #9 · answered by creskin 4 · 0 3

The company Toyota makes 3 different cars. They make Toyota's, Lexus, and Scions.
Volkwagens make Volkswagens, Audi's, Bently's, Skoda's, Seat's, and Lamborghini's.
Fiat make Alfa romeao, Ferrari, and Fiats.
GM makes Chevy, Saturn, pontiac, hummer, GMC, Daewoo, Saab, Cadillac, buick, oldmobile.

2007-10-18 15:19:37 · answer #10 · answered by C7S 7 · 1 0

Branding. People wouldn't want to pay as much if it said "Toyota" on the badge. Would you pay the same price for a Bently, Porsche or Audi as for a VW? After all, they are also the same company these days. Just like Acura being Honda, Ferrari and Alfa Romeo being FIAT...it's all about the image of that particular brand name. People who want a Bently wouldn't buy one with a VW badge, even if the car was otherwise identical.

2007-10-18 13:36:40 · answer #11 · answered by Me 6 · 2 1

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