MoneyINC Logo
25+
Years of
Trust
13,000+
Articles
Written 
10M+
Annual 
Readers
300+
Global
Mentions

Who Makes Lexus Cars and Where are They Made?

Lexus Cars

Lexus vehicles are established as the top of the line in automobiles, but there has been a lot of confusion over who makes Lexus branded vehicles. It stands to reason, that since you can purchase a Lexus at most Toyota dealerships, it must be owned by this company, but what exactly is the relationship between Toyota and Lexus, and are they the same type of vehicles? To clear up these frequently asked questions, we've done the research and found the answers.

Does Toyota really own Lexus?

According to Rallye Lexus, Toyota is the owner of the Lexus lineup of vehicles. This is why Lexus vehicles are commonly sold at Toyota dealerships. This puts the question of ownership to rest. Even though Toyota does, in fact, own Lexus, this doesn't mean that the two brands are the same, or that they share common designs or facilities.

Why is there a distinction between the brands?

The reason that Lexus is a brand that stands on its own is that even though Toyota owns Lexus, the two brands have remained independent of one another. Each has its own distinct headquarters in different cities and each operates independently. While the Toyota headquarters is in Toyota City, Lexus maintains its official headquarters in Nagoya. The two have not merged their operations.

Who designs Lexus vehicles?

Lexus Cars 1

Lexus maintains a design team that is in charge of the design, engine, and manufacturing of all Lexus vehicles. This has been the case since the 2000s era. Lexus maintains separate facilities from Toyota and the two entities do not share expertise between the two different and distinct brands. Lexus was created from a challenge that the chairman of the company issued to build the best car in the world. The 1983 proposal was titled Flagship One. It took years of market research to develop the Lexus line of cars. This was the first year that Lexus was launched in its debut model that was titled the Lexus LS 400. The vehicle was produced with a 4.0-liter V8 engine which met with great success at the 80 United States dealerships. As of 2019,ten-million Lexus models were sold.

Lexus manufacturing plants

According to Lexus of Albuquerque, both Lexus and Toyota are Japanese automakers. Although Lexus vehicles are sold throughout the world, the base manufacturing plants are situated in Japan. In 2003, the first Lexus to be manufactured in a different country was the Lexus RX 330, which came out of Ontario, Canada's manufacturing plant. Currently, there are five manufacturing operations in Japan, one in Canada, and another

Lexus of freehold, further explains that most Lexus brand models are in fact produced in the Kyushu and Chubu regions of Japan, with the exceptions of the Canadian and American plants. The very first Lexus vehicle was introduced to the world at the North American International Auto Show, which was held in Detroit, Michigan in 1989. The vehicle received critical acclaim for its luxurious interior, performance, and the quality of the build and design.

Why are Lexus vehicles more expensive than Toyotas?

According to US News, Lexus is a brand that has only been on the market for less than 40 years, but during that time, it has earned a reputation for the unique design features and the use of premium materials and build. Lexus vehicles have earned a premium badge. It's a luxury car that has taken its share of the luxury market. Although Lexus and Toyota share platforms with some blurring of the lines between the two brands, they are distinctly different. Although some of the Toyota higher trims are nearly at the same level of luxury, they still don't quite measure up to the creature comforts and detailing of the Lexus experience.

Is a Lexus worth the higher price tag?

Lexus Cars 2

There is still an ongoing debate over the higher cost of a new Lexus is worth the extra outlay of cash versus a comparable Toyota. Club Lexus forums offer an example of the debate. One knowledgeable forum member explains that much research has gone into the design and engineering of Lexus vehicles. Luxury cars require extra time and effort along with extra bells and whistles to bring them up to premium quality. You can tell the difference in the comfort level of the vehicle and the way that it handles. Lexus vehicles are known for superb quality and workmanship. All of these things are offered at a premium price because it takes more of an investment to build one than it does for some of the other types that are not quite up to that level of the luxury class.

Final thoughts

Lexus is a brand that was created by Toyota, the legal owner of the brand. Although the luxury brand sprang from Toyota, the decision was made to keep the operations independent of one another. Some have mistakenly assumed that every Lexus vehicle is a Toyota under different branding. This couldn't be further from the truth. It's been a confusing situation for many years. It is our hope that the questions have been answered. It's now clear that even though Toyota owns Lexus, the brands are different and made in separate facilities. Lexus cars do come with a higher price tag because of the premium badging. Some believe that the costs are too high. Others appreciate the luxury detailing and longevity that goes along with each Lexus manufactured and sold. The quality of a Lexus cannot be denied, but this is a controversial debate that continues to exist. It's best to view Toyota as the parent company. It's important to realize that it helped to launch the new luxury brand. As any good parent does, it takes a step back to allow the latest family member to develop its own unique personality and identity.

Benjamin Smith

Written by Benjamin Smith

Benjamin Smith is one of the managing editors of Moneyinc. Ben's been focusing on the auto and motorcycle sector since 2005. He's written over 1000 articles in the space and continues to learn about it each day. His favorite car is "any Bugatti" and he's a die hard Harley Davidson fan.

Read more posts by Benjamin Smith

Related Articles

Stay ahead of the curve with our most recent guides and articles on , freshly curated by our diligent editorial team for your immediate perusal.
As featured on:

Wealth Insight!
Subscribe to our Exclusive Newsletter

Dive into the world of wealth and extravagance with Money Inc! Discover stock tips, businesses, luxury items, and travel experiences curated for the affluent observer.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram