For years, Toyota Motor Corp.'s Lexus division pitched its cars as the practical alternative to European luxury brands like BMW and Mercedes. And over time, the Lexus brand came to be known as kind of expensive, always respectable -- and a little boring.
"Lexus cars are made to be luxurious and forgettable," says Ryan Wilsey, a 29-year-old Boston resident who works in venture capital. Formerly an owner of a Porsche Boxster, Mr. Wilsey's dream cars are a BMW M3 coupe or a Ferrari.
Now, with Toyota's sales hitting new records, it craves a makeover for Lexus. It wants to become a brand associated with the biggest names in luxury. Imagine "Louis Vuitton, Prada, Gucci and Lexus all mentioned in the same breath," says Brian Bolain, a Lexus marketing manager.
To get there, Lexus, a company known for its ultra-conservative culture, is introducing a slew of new vehicles costing over $70,000 -- more than anything Lexus has previously sold and nearly twice the price of its best-selling RX sport-utility vehicle. It deployed a "super affluent team," a group that traveled the country asking the ultra-rich what they want. It is throwing lavish parties around the country and cozying up with brands like Vogue Magazine and Neiman Marcus stores.
The best-selling luxury car brand in the U.S., Lexus is hardly struggling. Sales grew a healthy 7% to 322,000 vehicles last year. The company has no plans to move away from lesser-priced vehicles like the $33,470 ES and the $30,255 IS sedan, which together generate more than a third of the brand's sales. But Lexus, which is sold only in certain foreign markets, still lags well behind the world-wide sales of the BMW and Mercedes brands, which together sold more than 179,000 cars last month alone.
Read Article