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=== 1989–1992 === In August 1983, Toyota chairman [[Eiji Toyoda]] initiated the F1 project ("Flagship" and "No. 1" vehicle; alternatively called the "Circle-F" project), as a clandestine effort aimed at producing a world-class luxury sedan for international markets.<ref>[[#CITEREFDawson2004|Dawson, Chester (2004)]]. {{cite book |title=Lexus: The Relentless Pursuit |date=6 September 2004 |publisher=John Wiley & Sons (Asia) Pte Ltd., Singapore |page=4 |isbn=978-0-470-82110-7}}</ref><ref name="May43">[[#CITEREFMay2006|May, Matthew E. (2006)]]. ''The Elegant Solution: Toyota's Formula for Mastering Innovation'', Free Press, New York. p. 43. {{ISBN|0-7432-9017-8}}.</ref> The F1 development effort did not have a specific budget or time constraints, and the resulting vehicle did not use existing Toyota [[Automobile platform|platforms]] or parts.<ref>{{Harvnb|Dawson|2004|p=xxi}}.</ref><ref>[[#CITEREFMahler2004|Mahler, Jonathan (2004)]]. ''The Lexus Story: The Behind the Scenes Story of the #1 Automotive Luxury Brand in America''. DK Melcher Media, New York. p. 31. {{ISBN|0-9717935-7-3}}.</ref> Instead, chief engineer Ichiro Suzuki sought to develop an all-new design, aiming to surpass rival American and European flagship sedans in specific target areas, including [[aerodynamic]]s, cabin [[silence|quietness]], overall top speed, and [[Fuel economy in automobiles|fuel efficiency]].<ref name="dawson45">{{Harvnb|Dawson|2004|pp=45–46}}.</ref> During development, the 60 designers with 1,400 engineers in 24 teams, 2,300 technicians and over 200 support workers<ref>{{cite web |date=2013-10-10 |title=Lexus LS 400 – a history |url=http://blog.lexus.co.uk/2013/10/innovations-of-the-first-generation-lexus-ls |url-status=dead |archive-url=https://web.archive.org/web/20131013163508/http://blog.lexus.co.uk/2013/10/innovations-of-the-first-generation-lexus-ls/ |archive-date=13 October 2013 |access-date=2015-04-01 |website=Lexus UK Blog |publisher=Lexus UK}}</ref> built approximately 450 flagship prototypes and 900 engine prototypes.<ref name="dawson24">{{Harvnb|Dawson|2004|pp=24, 70}}.</ref> The teams logged {{convert|2.7|e6km|e6mi |abbr=off}} of testing on locations ranging from winter Europe roadways to deserts in [[Arizona]], Australia, or Saudi Arabia, to American highways and wilderness.<ref name="dawson50">{{Harvnb|Dawson|2004|pp=50–51}}.</ref><ref name="Mahler46">{{Harvnb|Mahler|2004|pp=46–48}}.</ref> [[File:LS design sketch.JPG|thumb|left|An early Lexus LS design sketch]] In May 1985, designers started work on the F1 project. In late 1985, designers presented the first exterior study models to F1 management, featuring a [[sports car]]-like design with a low-slung bonnet and narrow front profile.<ref name="Dawson42">{{Harvnb|Dawson|2004|pp=xvii, 42–43}}.</ref> By 1986, the sedan used a [[Three-box styling|three-box]] design with an upright stance, more prominent [[Grille (car)|grille]], and a two-tone body.<ref name=Dawson42/> Extensive modeling and [[wind tunnel]] tests resulted in a low [[Automobile drag coefficient|drag coefficient]] for a conventional production vehicle of the time ([[coefficient of drag|''C''<sub>''d''</sub>]] 0.29).<ref name="MSNtimeline">[[#CITEREFLong2001|Long, Brian (2001)]]. {{cite book |title=Lexus: The Challenge to Create the Finest Automobile |date=2001-02-08 |publisher=Veloce Publishing |isbn=978-1-901295-81-8 |location=Cardiff, Wales |pages=19–20}}</ref> For the passenger cabin, the materials-selection tests evaluated 24 different kinds of wood and multiple types of leather for two years before settling on specific trim combinations.<ref>{{Harvnb|Dawson|2004|p=52}}.</ref> By 1986, the Lexus marque was created to support the launch of the flagship sedan,<ref>[[#CITEREFMorganLiker2006|Morgan, James M. & Liker, Jeffrey K. (2006)]]. ''The Toyota Product Development System: Integrating People, Process and Technology''. Productive Press, New York. p. 121. {{ISBN|1-56327-282-2}}.</ref> and the vehicle became known as the Lexus LS.<ref name=dawson50/> Following eight design reviews, subsequent revisions, concept approval in February 1987,<ref>{{cite news |url=https://money.cnn.com/magazines/fortune/fortune_archive/1989/08/14/72355/index.htm |title=Here come Japan's new luxury cars |first1=Alex III |last1=Taylor |first2=William E. |last2=Sheeline |work=Forbes |location=US |date=1989-08-14 |access-date=2019-06-15}}</ref> and over US$1 billion in development expenses, the final design for the production Lexus LS 400 (chassis code UCF10) was frozen in May 1987 with design patents filed on 20 February 1987 and 13 May 1987.<ref name=dawson24/><ref>{{Harvnb|Wakefield|1989|p=35}}.</ref><ref>{{cite AV media |url=https://www.youtube.com/watch?v=2YfVEImFz7k |title=Lexus History |access-date=2017-12-11 |via=YouTube}}</ref> [[File:1990-1992 Lexus LS 400 (UCF10R) sedan 02.jpg|thumb|left|1990–1992 Lexus LS 400 (UCF10R; Australia)]] In January 1989, the LS 400 made its debut as a 1990 model at the [[North American International Auto Show#1989|North American International Auto Show]], in Detroit, Michigan.<ref name="Mahler 2004, p. 78">{{Harvnb|Mahler|2004|p=78}}.</ref> Production began on 15 May 1989, with the first shipments leaving Japanese ports in late June 1989. The first cars were available in August 1989, and U.S. sales officially began on 1 September 1989, followed by limited exports to Australia, Canada, and the United Kingdom starting in 1990.<ref>{{cite web |url=https://global.toyota/en/detail/7818590 |title=Lexus Production Begins |publisher=Toyota |date=1989-05-15 |access-date=2020-04-15}}</ref><ref name=lexusoverview>{{cite web |url=http://www.edmunds.com/lexus/ |title=Edmunds.com Lexus Overview |publisher=[[Edmunds.com]] |access-date=2011-02-22}}</ref> Sales in certain, lesser markets only started in late 1991, nearly three years after the car's introduction, as Lexus chose to focus on the North American and home markets. Production was limited to about 50,000 cars per year in order to maintain desired quality standards; 40,000 of these were earmarked for the United States, 8,000 for Japan, and only about 2,000 examples for the rest of the world.<ref name="TV791.36">{{cite magazine | ref = GD91 | title = Prestige Slakt | trans-title = Prestige Slaughter | language = sv | magazine = [[Teknikens Värld]] | publisher = Specialtidningsförlaget AB | location = Stockholm, Sweden | page = 36 | date = 1991-04-04 | issue = 7 | volume = 43 | first = Gunnar | last = Dackevall }}</ref> The LS 400's new 4.0-litre ''[[Toyota UZ engine|1UZ-FE]]'' 32-valve V8 engine, capable of {{cvt|245|PS|kW hp|0}} and {{cvt|350|Nm|lbft|0}} of torque,<ref>{{cite magazine | last = Bedard | first = Patrick | date = December 1989 | title = Comparison Test: Showdown | magazine = [[Car and Driver]] | volume = 35 | issue = 6 }}</ref> was linked to a new four-speed automatic transmission with ECT-i [[electronic control unit|electronically controlled]] shifts, super-flow [[torque converter]] and rear differential.<ref name=newkid>{{cite magazine |url=http://www.time.com/time/magazine/article/0,9171,971153-1,00.html |archive-url= https://web.archive.org/web/20071013114639/http://www.time.com/time/magazine/article/0,9171,971153-1,00.html |url-status=dead |archive-date=13 October 2007 |title=New Kid on the Dock |date=1990-09-17 |access-date=2007-04-29 |first=S.C. | last = Gwynne | author-link = S. C. Gwynne | magazine=[[Time (magazine)|Time]]}}</ref> The [[chassis]] used an independent, high-mount upper arm<ref name="toyota-global.com1">{{cite web |url=http://www.toyota-global.com/company/history_of_toyota/75years/data/automotive_business/products_technology/technology_development/chassis/index.html |title=75 Years of TOYOTA {{!}} Technical Development {{!}} Chassis |publisher=Toyota |access-date=2018-07-20}}</ref> [[double-wishbone suspension]] setup<ref>{{cite web |url=http://www.motortrader.com.my/NUS/articles/article_740/page_m.asp |archive-url=https://web.archive.org/web/20080322220809/http://www.motortrader.com.my/NUS/articles/article_740/page_m.asp |archive-date=2008-03-22 |title=The creation of Lexus |date=2006-12-12 |work=Malaysian Motor Trader |last=Yap |first=Chips |access-date=2008-08-21}}</ref> with twin tube shock absorbers,<ref name="toyota-global.com1"/> and a passive [[air suspension]] system was optional.<ref>{{Harvnb|Long|2001|p=22}}.</ref> The LS 400's 0–{{convert|100|km/h|mph}} time was 8.5 seconds, and its top speed was {{cvt|250|km/h|mph|sigfig=3}}.<ref>{{cite web |url=http://www.autoevolution.com/engine/lexus-ls-1990-400.html |title=Lexus LS 400 1990 – 1995 specifications |publisher=Autoevolution.com |access-date=2009-06-05 |year=2009}}</ref> Compared to its rivals, namely the [[BMW E32|BMW 735i (E32)]] and [[Mercedes-Benz W126|Mercedes-Benz 420 SE (W126)]], the LS 400 had a quieter cabin, with 58 [[decibels|dB]] at {{cvt|100|km/h|mph}}; a higher top speed; a lower drag coefficient and [[curb weight]]; and it avoided the U.S. [[Gas Guzzler Tax]].<ref name=dawson63>{{Harvnb|Dawson|2004|pp=63, 68–71}} "0–60: 7.9 sec."</ref><ref>Comparison data: LS 400 (250 km/h, Cd 0.29, 1,710 kg); 735i (220 km/h; Cd 0.37, 1,760 kg; 420 SE 222 km/h, Cd 0.32; 1,760 kg).</ref><ref>{{Harvnb|Dawson|2004|pp=xxi, 64}}.</ref> In European tests, the noise level at {{cvt|200|km/h|mph|0}} was measured at 74 dBA, equal to a BMW 735i at {{cvt|150|km/h|mph|0}}.<ref>[[#GD91|Dackevall 1991]], p. 32.</ref> At its introduction in 1989, the Celsior won the [[Car of the Year Japan]] award.<ref name="t371">{{cite web | title=Celsior | website=[[Toyota]] | url=https://www.toyota-global.com/company/history_of_toyota/75years/vehicle_lineage/car/id60010294/index.html | access-date=2024-10-13}}</ref> The LS 400 was among the first luxury sedans to feature an automatic tilt-and-telescoping [[steering wheel]] with [[Airbag|SRS airbag]], power adjustable shoulder [[seat belt]]s, and an [[electrochromism|electrochromic]] [[rear-view mirror]].<ref name=lapluxury>{{cite web |last=Pacic |first=Milo |date=2004-09-23 |url=http://www.automobear.com/LexusInTheLapOfLatentLuxury.html |title=Lexus (in the lap of latent luxury) |publisher=AutomoBear.com |archive-url=https://web.archive.org/web/20060523004121/http://www.automobear.com/LexusInTheLapOfLatentLuxury.html |archive-date=2006-05-23}}</ref><ref>Woodcock, Glen. "Living Large in Lexus". ''[[Calgary Sun]]''. Retrieved 2007-04-08.</ref> The five-passenger cabin included [[Walnut|California walnut]] and leather trim, power-adjustable seats, and soft-touch controls. A back-lit [[electroluminescence|electro-luminescent]] gauge cluster featured a [[holographic]] visual effect, with indicator lights projected onto the [[dashboard|instrument panel]].<ref name=lapluxury/><ref>{{Harvnb|Long|2001|p=27}}.</ref> The memory system stored the driver's seat, side mirror, steering wheel, and seat belt positions. Available luxury options included a [[Nakamichi]] premium sound system and an integrated [[cellular telephone]] with [[hands-free]] capabilities.<ref name=newkid/><ref>{{cite web |url=https://query.nytimes.com/gst/fullpage.html?res=950DE4DA1438F932A25755C0A96F948260 |title=What's new in car stereos; in the auto sound race, Detroit speeds ahead |work=[[The New York Times]] |access-date=2009-02-19 |last=Bloom |first=Craig |date=1989-06-11}}</ref><ref>{{Harvnb|Long|2001|p=33}}.</ref> The LS 400 further contained some 300 technological innovations to aid smooth operation and silence,<ref name=newkid/> including [[Damping ratio|fluid-damped]] cabin fixtures,<ref name=ls430usa>{{cite web |url=https://pqasb.pqarchiver.com/USAToday/access/60426720.html?FMT=ABS&FMTS=ABS:FT&date=Sep+15%2C+2000&author=James+R.+Healey&pub=USA+TODAY&edition=&startpage=10.D&desc=Made-over+Lexus+moves+spendidly+ahead |title=Made-over Lexus moves splendidly ahead |work=USA Today |access-date=2009-02-14 |last=Healey |first=James |date=2000-09-15 |archive-date=27 August 2016 |archive-url=https://web.archive.org/web/20160827195203/http://pqasb.pqarchiver.com/USAToday/doc/408852119.html?FMT=ABS&FMTS=ABS:FT&type=current&date=Sep%2015,%202000&author=James%20R.%20Healey&pub=USA%20TODAY&edition=&startpage=10.D&desc=Made-over%20Lexus%20moves%20spendidly%20ahead |url-status=dead }}</ref> vibration-insulating rubber mounts,<ref name=dawson71/> airflow [[aircraft fairing|fairings]],<ref>{{Harvnb|Long|2001|pp=19, 26}}.</ref> and sandwich steel body panels.<ref name="dawson71">{{Harvnb|Dawson|2004|p=71}}.</ref> [[File:1989 Toyota Celsior 01.jpg|thumb|1989 Toyota Celsior]] In Japan, the launch of Lexus was complicated by Toyota's existing four domestic dealership networks at the time of its introduction.<ref>{{Harvnb|Dawson|2004|p=192}}.</ref> The [[Toyota Crown]] and [[Toyota Century]] were exclusive to ''[[Toyota Store]]'' locations.<ref name="dawson6">{{Harvnb|Dawson|2004|pp=6, 30–31, 90}}.</ref> During the LS 400's development, local dealers' requests for a [[Japanese domestic market]] version had grown,<ref name=Dawson42/> and a right-hand-drive Toyota Celsior-badged version was introduced shortly after the LS 400's U.S. debut, and introduced on 9 October 1989 and only available at ''Toyopet Store'' locations.<ref name="long41">{{Harvnb|Long|2001|pp=40–41}}.</ref> The Celsior, named after the [[Latin]] word for "supreme," was largely identical to the LS.<ref name=long41/> Models came in either basic "A," a "B" model with uprated suspension, or fully equipped "C" trim specifications.<ref name=LSpl>{{cite web |url=http://www.goo-net.com/car_info/usedcar_topics/075/04.html |title=Lexus LS 400/Celsior Guide |publisher=Proto Corporation |language=ja |access-date=2010-04-19 |last=Morohoshi |first=Youiti |year=2004 |archive-date=27 September 2018 |archive-url=https://web.archive.org/web/20180927124908/https://www.goo-net.com/ipad/magazine/ |url-status=dead }}</ref> The Crown and the [[Toyota Crown Majesta|Crown Majesta]], which appeared later in 1991, were only available at ''[[Toyota Store]]'' locations which carried Japan-only Toyota luxury models, like the Century.<ref name=dawson6/> Ownership costs for Japanese drivers were and are expensive due to Japanese Government [[Vehicle size class#Japan|dimension regulations]] and [[Road tax#Japan|annual road tax obligations]]. Owning a Celsior in Japan is also considered extravagant due to the fact urban two-way streets are [[Speed limits in Japan|usually zoned at {{convert|40|km/h|mi/h|sigfig=2|abbr=on}} or less]].<ref>{{cite web|title=Driving in Japan|url=http://www.japan-guide.com/e/e2022.html|website=Japan-Guide.com|access-date=22 February 2017}}</ref> The Celsior introduced two world firsts: high-performance twin-tube shock absorbers and an [[air suspension]] combined with an upgraded version of Toyota's semi-active Toyota Electronic Modulated Suspension, called [[Piezo TEMS]].<ref>{{cite web |url=http://www.toyota-global.com/company/history_of_toyota/75years/data/automotive_business/products_technology/technology_development/chassis/index.html |title=75 Years of Toyota {{!}} Technical Development {{!}} Chassis |publisher=Toyota |year=2012 |access-date=2017-12-11}}</ref> Adding incentive for early U.S. sales was a base price of US$35,000 (${{formatnum:{{Inflation|US|35000|1989}}}} in {{Inflation-year|US}} dollars {{inflation-fn|US}}), which undercut competitors by thousands of dollars<ref>{{Harvnb|Dawson|2004|p=19}}.</ref> and brought accusations of [[Dumping (pricing policy)|selling below cost]] from rival [[BMW]].<ref name=newkid/> Being a [[flagship]] luxury sedan in the full-size segment, the relatively low starting MSRP was actually targeted to be at $25,000 during initial stages of development. However, the [[Currency appreciation and depreciation|depreciation]] of the Yen vs. the Dollar resulted in a climb to $35,000. Lexus division general manager Dave Illingworth admitted in an interview with Automotive News that many in product planning were concerned about the price hike and the potential effect it could have on sales success. Part of the concern was due to the fact that the Lexus nameplate lacked the heritage and brand recognition of German rivals such as [[Mercedes-Benz]]. Similarly, luxury cars competing in a class slightly below that of the BMW 7-Series and Mercedes S-Class averaged in the $25000 range. However, once the LS400 was released, sales figures were very positive, as the vehicle was nearly universally praised for its high standards and levels of specification.<ref>{{cite web |last=Henry |first=Jim |date=2007-10-29 |title=A Japanese luxury brand? Doubters scoffed – but not for long |url=https://www.autonews.com/article/20071029/ANA06/710290326/a-japanese-luxury-brand-doubters-scoffed-but-not-for-long |access-date=2019-01-07 |publisher=Autonews |location=US}}</ref> In December 1989, shortly after the LS 400's launch, Lexus ordered a voluntary recall of the 8,000 vehicles sold so far, based upon two customer complaints over defective wiring and an overheated [[brake light]]. All vehicles were serviced within 20 days, and the incident helped establish Lexus' [[customer service]] reputation.<ref name=newkid/><ref>{{cite news |url=https://www.theglobeandmail.com/auto/article840284.ece |title=Brand defined itself by reliable quality |work=The Globe and Mail |access-date=2009-02-19 |last=Cato |first=Jeremy |date=2006-08-16 |url-status=dead |archive-url=https://web.archive.org/web/20090922125306/http://www.theglobeandmail.com/auto/article840284.ece |archive-date=2009-09-22 }}</ref><ref>{{cite web |url=http://www.autonews.com/apps/pbcs.dll/article?AID=/20060327/SUB/60322012/1003 |title=How a recall earned Lexus a top reputation |work=[[Automotive News]] |access-date=2009-02-19 |last1=Denove |first1=Chris |date=2006-03-27 |last2=Power |first2=James}}</ref> By 1990, U.S. sales of the LS 400 had surpassed those of competing [[Mercedes-Benz]], [[BMW]], and [[Jaguar Cars|Jaguar]] models.<ref name=whytoyota>{{cite web |url=https://money.cnn.com/magazines/fortune/fortune_archive/1990/11/19/74363/index.htm |title=Why Toyota keeps getting better and better and better |work=[[Fortune (magazine)|Fortune]] |access-date=2009-02-19 |date=1990-11-19 |last=Taylor |first=Alex}}</ref> Production of the first-generation LS 400 totaled over 165,000 units.<ref name=LSspecs>{{cite web |url=http://www.lexus.com/contact/model_specifications_pricing_ls.html |title=Lexus Knowledge Center – LS Model Specifications |format=PDF |publisher=Lexus |access-date=2009-04-13 |url-status=dead |archive-url=https://web.archive.org/web/20120309061805/http://www.lexus.com/contact/model_specifications_pricing_ls.html |archive-date=2012-03-09 }}</ref> The LS 400 made ''Consumer Reports'' 2007 list of recommended vehicles that regularly last {{cvt|320,000|km}} or more, with proper maintenance.<ref>Consumer Union (2007–2010). "Make your car last 200,000 miles or more." ''[[Consumer Reports]]'', pp. 20–23.</ref>
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