Luxury vehicles function as technological showcases for manufacturers, demonstrating their capabilities. Although Toyota was already recognized as a good general manufacturer, it created Lexus with the aim of proving that it could go beyond that level. This strategy has been imitated by Chinese brands, which introduce expensive models to lend credibility to higher-volume cars.
The first Lexus vehicle was the LS400 sedan, launched in 1989, which caused a great impact on competitors such as Mercedes-Benz, BMW, Jaguar, and Cadillac. For many Brazilians, this car is known for being the one that must be destroyed in a bonus phase of Street Fighter II.
Toyota already had an exclusive luxury model for Japan, the Century, launched in 1967. This car followed a typically Japanese philosophy, focused on discretion, smoothness, and silence. The Lexus division maintained these characteristics but combined them with high technology and performance.
The main benchmark in this segment has always been the Mercedes-Benz S-Class, which was frequently chosen by heads of state, diplomats, and celebrities. In 1983, Eiji Toyoda, then president of Toyota, initiated the project to create a 'Japanese Mercedes.' The defined goals did not include deadlines or budget, but rather surpassing European manufacturers in aerodynamics, interior quietness, top speed, and fuel efficiency.
This ambitious project mobilized 60 designers, 1,400 engineers distributed across 24 teams, 2,300 technicians, and over 200 support staff. 450 prototypes of the car and 900 of the engine were produced, totaling 2.7 million kilometers driven. The car reached its final forms in 1987, undergoing durability tests and validation until its launch in early 1989. Toyota's initial goal was to sell 50,000 units annually, with 40,000 destined for the United States.
All this effort resulted in the Lexus LS400, the pioneer of the division's luxury line. Its design was conservative, without excessive grilles or hood ornaments, but featured precise panel fits and attention to aerodynamics. The LS400's engine was an unprecedented 4.0 V8, the 1UZ-FE, which used a cylinder bore larger than the piston stroke to ensure greater smoothness.
One of the launch announcements illustrated this smoothness with the car accelerating on a dynamometer with stacked cups on the hood, which remained stable due to the V8. This engine generated 260 hp and 36 kgfm, reaching 100 km/h in 8.5 seconds and a top speed of 250 km/h. The four-speed automatic transmission incorporated electronic control, which was innovative for the time. Furthermore, the Lexus LS400 offered electric adjustments for the steering wheel and seatbelts, an electroluminescent dashboard with a holographic effect, air suspension, a Nakamichi sound system, and an integrated mobile phone; in Japan, where it was sold as the Toyota Celsior, it could include GPS.
While Toyota was developing the LS400, Mercedes-Benz was designing a new S-Class, also scheduled for release in 1989. However, the arrival of the Japanese sedan forced the Germans to revisit their designs. The new S-Class was already facing delays due to the development of a V12 engine, necessary to compete with the BMW 750i. After acquiring a Lexus LS400, Mercedes-Benz engineers were impressed by the assembly precision and acoustic insulation of the vehicle.
Consequently, the new S-Class project was postponed by 18 months to improve these aspects and complete the V12 engine. This delay incurred extra costs amounting to US$ 1 billion. Although every unit sold of the first Lexus LS400 resulted in a loss for Toyota, this loss was offset by sales of models like the Corolla, Camry, and Hilux. Mercedes-Benz also recorded losses with the S-Class, but this impacted its financial balance more significantly. During the 1990s, the German brand tried to cut costs, and certain decisions ended up increasing losses, with recovery from the impact caused by Lexus only beginning in the following decade.