[21] During that time, several F1 designers rented a home in Laguna Beach, California, to observe the lifestyles and tastes of American upper class consumers.

[22] Toyota's market research concluded that a separate brand and sales channel were needed to present its new sedan, and plans were made to develop a new network of dealerships in the U.S.

[17] Image consulting firm Lippincott & Margulies was hired to develop a list of 219 prospective names; Vectre, Verone, Chaparel, Calibre and Alexis were chosen as top candidates.

[24] Prior to the release of the first vehicles, database service LexisNexis obtained a temporary injunction forbidding the name Lexus from being used because it might cause product confusion.

[32] The resulting car, the Lexus LS 400, had a design that shared no major elements with previous Toyota vehicles, with a new 4.0 L V8 gasoline engine and rear-wheel drive.

[33][34] The car debuted in January 1989 at the North American International Auto Show in Detroit[19] and official sales of the vehicle began the following September at a network of 81 new Lexus dealerships in the U.S.[35] The LS 400 was sold along with the smaller ES 250, a rebadged version of the Japanese market Toyota Camry Prominent/Toyota Vista.

[36] The LS 400 was praised for its quietness, well-appointed and ergonomic interior, engine performance, build quality, aerodynamics, fuel economy and value.

[40] A 20-day operation to replace the parts on affected vehicles included technicians to pick up, repair and return cars to customers free of charge, and also flying personnel and renting garage space for owners in remote locations.

[58] Normal sales operations resumed by late 1995 when the Japanese auto manufacturers collectively agreed to greater American investments and the tariffs were not enacted.

[68] In 2005, Lexus completed an organizational separation from parent company Toyota,[69] with dedicated design, engineering, training, and manufacturing centers working exclusively for the division.

[80] Sales for the first half-year were slower than expected,[82] affected by the contraction of the domestic auto market and price increases,[83] but improved in subsequent months with an expanded lineup.

In October 2007, Lexus entered the Specialty Equipment Market Association show in the U.S. for the first time with the IS F, and announced its F-Sport performance trim level and factory-sanctioned accessory line.

[121][122] The redesigned GX 460 was also voluntarily recalled in April 2010 for a software update, one week after Consumer Reports issued a recommendation not to buy the SUV, citing a possible rollover risk following the slow stability control response to a high-speed emergency turn.

[126][127] In March 2011, the Tōhoku earthquake and tsunami caused severe disruption to Lexus' Japan-based production lines, hindering the marque's near-term sales prospects.

[128] Lexus' U.S. executives stated that due to vehicle shortages amidst close competition from BMW, Mercedes-Benz, and Audi, the marque would not remain the country's top-selling premium car brand.

[133] While 45 percent of Lexus sales in the U.S. in 2011 relied upon the RX luxury crossover SUV, rival Mercedes-Benz's best-selling offering was the E-Class mid-luxury sedan, which commands considerably higher prices.

[134] Subsequently, Toyota chairman Akio Toyoda vowed to restore passion to the marque and further increase its organizational independence, admitting that "...back then we did not regard Lexus as a brand, but as a distribution channel".

[168] Automotive analysts have suggested a possible rationale for the sales disparity, in that European buyers place less emphasis on vehicle reliability and have more brand loyalty to established domestic marques.

[167] In contrast, the Lexus LS has ranked second in sales to the Mercedes-Benz S-Class (and ahead of rivals from BMW, Audi, and Jaguar) in markets outside Europe, such as South Africa.

[172] However, automotive analysts estimate that the Lexus division contributes a disproportionate share of Toyota's profits, relative to its limited production and sales volume.

[177][178] F-Sport succeeded an earlier in-house tuning effort, the TRD-based L-Tuned, which had offered performance packages on the IS and GS sedans in the early 2000s (decade).

[191][192] Vehicle cabins have incorporated electroluminescent Optitron gauges,[193] SmartAccess, a smart key entry and startup system,[194] and multimedia features.

[68] In 2007, Lexus executives signaled intentions to equip further models with hybrid powertrains,[116] catering to demands for a decrease in both carbon pollution and oil reliance.

[215] Design characteristics, including a fastback profile, lower-set grille,[216] and the use of both convex and concave surfaces,[216] are derived from Japanese cultural motifs (e.g. the phrase kirikaeshi in arrowhead shapes).

[214][215] Opinions varied for L-finesse's debut on the GS; Sports Car International's analysis praised the vehicle's in-person appearance;[218] Automobile Magazine criticized the daring of its forward styling,[219] and compared subsequent rival models for design similarities.

Beginning in 1989, television ads were narrated by actor James Sloyan (the voice of "Mr. Lexus" until 2009),[36][268] and accompanied by vehicles that performed unusual stunts onscreen.

[269] The first decade of Lexus commercials (1989–99) consisted primarily of disjunctive verbal descriptions, such as "relentless", "pursuit", and "perfection",[270] while vehicles were used to claim superiority in precision, idling, and interior quiet and comfort on camera.

[274] Industry observers have attributed Lexus' early marketing successes to higher levels of perceived quality and lower prices than competitors, which have enabled the marque to attract customers upgrading from mass-market cars.

[277][282] European rivals have marketed their decades of heritage and pedigree,[283] whereas Lexus' reputation rests primarily upon its perceived quality and shared history with parent company Toyota.

[290] On 30 March 2018, Lexus premiered a fake partnership with 23 and Me during a spot on Saturday Night Live, for a pretend program that allows buyers to customize vehicles based on their DNA, as an April Fool's Day joke.