Toyota 2007 Annual Report Download - page 37

ANNUAL REPORT 2007 35
LEXUS
500,000 Lexus-brand vehicles
around the world.
In North America, fiscal 2007
Lexus sales remained strong, rising
6%, to 340,000 vehicles. Lexus
market share in the U.S. luxury
brand segment rose to 16% in
2006, and Lexus earned the rank of
best-selling luxury brand for the
seventh straight year.
In Japan, where the Lexus brand
entered its second fiscal year on
the market, we expanded the net-
work of Lexus dealers from the first
fiscal year’s 151 to 163 and sold
more than 36,000 vehicles. We will
further consolidate recognition of
Lexus as a premium brand and
steadily build a customer base.
In Europe, fiscal 2007 Lexus sales
jumped 48%, to more than 50,000
vehicles, thanks to the expansion
of the dedicated Lexus dealer net-
work and the stepped-up introduc-
tion of diesel and hybrid models.
In Asia, including China, Lexus sales
rose 48% in fiscal 2007, to approxi-
mately 67,000 vehicles. In China,
we are concentrating on strength-
ening sales. Focusing on large cities,
we expanded the network of dedi-
cated Lexus dealers to 23.
Note: Lexus vehicle sales are calculated on a
retail basis and are different from
consolidated vehicle sales (shipments).
Product Strategy
Create True Luxury through
Craftsmanship and Leading-
Edge Technologies
From fall 2006, we began introduc-
ing a new model of the flagship Lexus
LS in stages worldwide. Merging
the latest technologies with crafts-
manship and an uncompromising
commitment to true luxury, the
Lexus LS460 earned high acclaim
from the outset, and strong sales
of the model continue. We believe
that the Lexus LS460’s superior dri-
ving performance, advanced safety
technology, excellent environmen-
tal performance, and meticulously
crafted features set the standard
for new-era prestige sedans.
Around the world, the Lexus
LS460 has earned praise from cus-
tomers and many other quarters.
Domestically, it was chosen as the
2006–2007 Japan Car of the Year in
November 2006. Overseas, the
model has received numerous
accolades. In April 2007, automo-
bile journalists chose the Lexus
LS460 as the 2007 World Car of the
Year—the first time a Japanese car
has received this award. Other
Lexus vehicles are also widely
admired. For example, this year
the Lexus IS won the “Das Goldene
Lenkrad” (Golden Steering) in Europe.
Our product strategy for Lexus is
to expand the lineup of models in
stages while continuing to improve
driving and environmental perfor-
mance to strengthen their appeal.
In an effort to expand the Lexus
brand into new vehicle segments,
we unveiled a sports car, the latest
Lexus LF–A concept vehicle, at the
North American International Auto
Show in January 2007. Additionally,
we are strategically developing
hybrid offerings. Having already
marketed hybrid versions of the
Lexus RX SUV in April 2005 and the
Lexus GS sedan in March 2006, we
rolled out a hybrid version of the
flagship Lexus LS model, the Lexus
LS600h, in May 2007 in Japan. The
launch of this latest hybrid is
another step toward realizing our
goal of creating new-era prestige
sedans under the Lexus marque.
Craftsmanship Lives on in Lexus
Under the Lexus brand, we take a
meticulous approach to manufacturing
in the pursuit of true luxury. At the
Tahara plant in Japan, which manufac-
tures Lexus models, we ensure quality
befitting of a global premium brand by
dovetailing leading-edge production
equipment and production engineering
with the craftsmanship of highly skilled
workers. To pass on that craftsmanship
to the next generation, all Lexus-model
production employees undergo spe-
cialized training.
We seek ultimate quality that can
only be achieved through the high-level
marrying of the Lexus brand’s famous
manufacturing quality and employees’
senses—in other words, that can only be
achieved through expert craftsmanship.
Crankshaft polishing by master craftsmanCrankshaft polishing by master craftsman