May. 26, 2004

Toyota Outlines Lexus Japan Introduction Plan

109 Companies, 180 Outlets Aim to Sell Up to 60,000 a Year

 

Tokyo―TOYOTA MOTOR CORPORATION (TMC) released an outline today of its plan for the introduction of the Lexus brand to Japan in August 2005.

The Lexus brand to be created in Japan will be established as “a truly global premium brand for the 21st century,” in order to respond to new consumer values that increasingly emphasize a “sense of the best,” as well as individuality, within Japan’s highly competitive luxury vehicle market.

In order to achieve this, Toyota plans to develop business in Japan in the following manner.

1) An organization devoted to the Lexus brand separate from the Toyota brand will be created, which will function independently, from development to sales.
2) Four vehicle series―LS, GS, IS and SC―will be introduced within one year of starting operations.
3) Initially, the annual sales goal will be 50,000 to 60,000 vehicles.
4) A new and independent network consisting of 180 dealers will be constructed. The dealers will be exclusive Lexus dealers with new car, servicing and used car functions.
5) There will be 109 Lexus sales companies (107 of the companies will be existing Toyota vehicle dealers and two will be newly created companies).
6) Individuals who share a common understanding of the Lexus brand and can put it into practice will be hired.
7) Personnel will undergo training at Lexus training facilities that are scheduled for completion at Fuji Speedway in the spring of 2005.

Based on the “customer always comes first” policy, the Lexus brand intends to continue pursuing the essence of luxury by providing high-quality products, as well as an unparalleled purchasing experience and after-sales service.
Overview of the Development of the Lexus Brand in Japan
Start of operations August 2005
Products Four vehicle series at start of operations: LS, GS, IS and SC (to be launched within one year)
Sales plan 50,000 to 60,000 vehicles per year
Dealer
network		 Outlets Approximately 180 dealers nationwide (planned), with approximately 80% operating when business starts
Sales companies 109 sales companies:
- Current Toyota vehicle dealers: 107
- Companies other than current Toyota vehicle dealers: 2
Sales and after-sales
service policies		 Integrated dealers and personnel dedicated to providing an unparalleled purchasing experience and after-sales service in terms of outlets, personnel and hospitality
Sales and after-sales
service policies		 Outlets Creation of outlets that give a sense of ultimate luxury and are customer oriented.
- A uniform outlet design will be adopted.
- Outlet facility standards will be set.
- A Lexus Dealers Design Center will be established to focus on outlet design (including model showrooms).
Personnel Individuals who share a common understanding of the Lexus brand and can put it into practice will be hired.
- To emphasize training and education, a Lexus training facility will open at Fuji Speedway (scheduled in the spring of 2005).
After-sales service/hospitality Customers will be provided a sense of security and satisfaction throughout the entire sales and service process.
- Vehicle selection Display and test-drive vehicles will be available at all dealers to ensure that customers can select the optimal vehicle. Options and specifications suitable for a luxury vehicle will be made available.
- Purchase Financing and insurance programs that offer plans optimized for each customer will be offered.
An exclusive customer center will be available 24 hours a day, 365 days a year.
A 24-hour emergency support system will be available.
Customer support using telematics with cutting-edge information technologies will be provided.
List of Lexus outlets and number of planned outlets in each prefecture
  Number of planned outlets
Hokkaido 9
Aomori 1
Iwate 1
Miyagi 3
Akita 1
Yamagata 1
Fukushima 3
Ibaraki 4
Tochigi 3
Gunma 3
Saitama 9
Chiba 7
Tokyo 23
Kanagawa 12
Niigata 2
Yamanashi 1
Toyama 1
Ishikawa 2
Fukui 1
Nagano 2
Gifu 4
Shizuoka 6
Aichi 16
Mie 4
Shiga 2
Kyoto 4
Osaka 12
Hyogo 8
Nara 2
Wakayama 2
Tottori 1
Shimane 1
Okayama 2
Hiroshima 4
Yamaguchi 3
Tokushima 1
Kagawa 1
Ehime 2
Kouchi 1
Fukuoka 6
Saga 1
Nagasaki 1
Kumamoto 2
Oita 1
Miyazaki 1
Kagoshima 2
Okinawa 1
Total 180

NOTE: Numbers include outlets in adjacent cities and towns

Reference: Breakdown according to sales channel
“Toyota” Dealers 46 companies
“Toyopet” Dealers 29 companies
“Corolla” Dealers 14 companies
“Netz” Dealers 18 companies
Total number of domestic Toyota vehicle dealers 107 companies