Lexus is a luxury vehicle manufacturer that was founded in 1989 by then-Toyota chairman Eiji Toyoda. The story of Lexus began six years earlier, however, when a team of Japanese technicians, engineers, and designers were part of a secret project to design a new luxury sedan. Toyoda believed it was the right time to manufacture such a vehicle since competitors in Nissan and Honda were already in the process of developing their respective Infiniti and Acura premium brands. The first Lexus off the production line was the LS 400 which offered world-class speed, comfort, safety, dignity, beauty, and elegance. The LS 400, like every Lexus today, is associated with exemplary customer service that embodies omotenashi, or the Japanese spirit of hospitality that seeks to seek, anticipate, and then meet the needs of each customer. In more recent years, Lexus has expanded into SUVs, hybrid vehicles, high-performance sedans, and supercars. The company sold over 760,000 vehicles in 2021 with almost 45% of sales coming from the North American market.
Lexus ownership
Toyota is the sole owner of the Lexus brand, but while Toyota is headquartered in Toyota City, Lexus has a separate Japanese headquarters in Nagoya.
Note that the company has also been operating its own design, engineering, training, and manufacturing facilities since 2005.
This move was made to provide organizational separation between Lexus and Toyota which coincided with expansion efforts into the United States and China.
Despite the separation between the two companies, Lexus executives nevertheless report directly to the Toyota CEO.
The Lexus RX 330 became the first model to be built outside of Japan, rolling off the line in Ontario, Canada, in 2003. Today, different models tend to be manufactured across seven locations:
Kitakyushu, Japan.
Tahara, Japan.
Toyota City, Japan.
Cambridge, Ontario, Canada.
Georgetown, Kentucky, USA.
Susono, Japan, and
Miyawaka, Japan.
Lexus brand, design, and sales structure
In the United States, Lexus brand operations are managed by the U.S. Lexus Division in Texas, while a similar facility in Brussels is run by Lexus Europe.
In terms of design, there are two standalone facilities in Southern California and central Japan with an entire studio devoted to Lexus in Toyota City.
Sales operations also tend to differ according to the region. The organization that manages all United States dealerships, for example, is separate to Toyota headquarters with Lexus showrooms independently owned and operated.
In Japan, on the other hand, all dealerships are owned and operated by Lexus, while several markets such as the UAE differ again by utilizing third-party regional distributors.
Key takeaways:
Lexus is a luxury vehicle manufacturer that was founded in 1989 by then-Toyota chairman Eiji Toyoda. The story of Lexus began in 1983 when a team of technicians, engineers, and designers were involved in a secret project to design a new luxury sedan.
Toyota is the sole owner of the Lexus brand, but while Toyota is headquartered in Toyota City, Lexus has a separate Japanese headquarters in Nagoya. The two companies made a formal separation in 2005, at which point Lexus began operating its own design, engineering, training, and manufacturing facilities.
The degree to which Lexus is distinct from Toyota also varies from one region to the next and is influenced by various brand, design, and sales structures.
Formerly part of the Volkswagen Group, which owns iconic brands like Lamborghini, Bentley, and Ducati, Bugatti is part of a new joint venture. Indeed, Porsche (the corporation which controls Volkswagen, owned by the Porsche family) still holds a 24% stake in the holding that controls Bugatti. The brand has been spun out from Volkswagen. A majority stake of 55% is now owned by a joint venture called Rimac Group, controlled by Porsche (24%), Hyundai (12%), Mate Rimac (37%), and Other Investors. The Porsche family also holds a further 45% stake in the Bugatti | Rimac joint venture, thus playing the role of key shareholder.
Lamborghini is an Italian luxury sports car manufacturer founded in 1963 by manufacturing magnate Ferruccio Lamborghini. Since that time, ownership of the firm has changed several times. Another financial crisis in the late 1990s saw Lamborghini sold to Volkswagen through its subsidiary Audi AG. The subsidiary remains the owner of Lamborghini today. And it’s part of the Volkswagen Group.
Volkswagen Group is a major car maker which owns brands like Volkswagen, SKODA, SEAT, Audi, Bentley, Porsche, and more. Volkswagen Group sold over 8.5 million cars in 2021, compared to over 9.1 million in 2020 and over 10.9 million vehicles in 2019.
Volkswagen Group is a major car maker which owns brands like Volkswagen, SKODA, SEAT, Audi, Bentley, Porsche, and more. Volkswagen Group produced over 8.2 million cars in 2021, compared to 8.9 million cars in 2020 and over 10.8 million produced vehicles in 2019.
Volkswagen Group is a major car maker that owns brands like Volkswagen, SKODA, SEAT, Audi, Bentley, Porsche, and more. Volkswagen Group delivered over 8.8 million cars in 2021, compared to 9.3 million in 2020 and over 10.9 million deliveries in 2019.
The Volkswagen Group, comprises brands like SKODA, SEAT, Audi, Bentley, Porsche, and more. In 2021 it generated over €250 billion in revenue, compared to over €222 billion in 2020 and over €252 billion in 2019.
Within the Volkswagen group, the Volkswagen brand generated over €76 billion in revenue in 2021, compared to over €71 billion in 2020 and over €88 billion in 2019. Volkswagen is part of the Volkswagen Group, which comprises brands like SKODA, SEAT, Audi, Bentley, Porsche, and more, which in 2021 generated over €250 billion in revenue.
Audi generated €53 billion in revenue in 2021, compared to almost €50 billion in 2020 and €55.6 billion in 2019. Audi is part of the Volkswagen Group, a major car manufacturer which generated over €250 billion in revenue in 2021.
Porsche generated over €30 billion in revenue in 2021, compared to over €26 billion in 2020 and over €26 billion in 2019. Porsche is part of the Volkswagen Group, a major car manufacturer which generated over €250 billion in revenue in 2021.
SKODA generated €17.7 billion in revenue in 2021, compared to over €17 billion in 2020 and €19.8 billion in 2019. SKODA is part of the Volkswagen Group, a major car manufacturer which generated over €250 billion in revenue in 2021.
Bentley generated €2.84 billion in revenue in 2021, compared to over €2 billion in 2020 and over €2 billion in 2019. Bentley is part of the Volkswagen Group, a major car manufacturer which generated over €250 billion in revenue in 2021.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
