The all-new Lexus LS 460 is being launched this October, and it’s quite a car. While the LS is doubtless a very impressive product, what it means for Lexus strategically is probably more significant than the car itself. The 2007 LS is Lexus’ first foray into what they call the “premium luxury” automotive market – cars costing more than $70,000 – and its introduction means that Mercedes’ most profitable customers are now in play.
Lexus’ birth 17 years ago was a huge move for Toyota as they transitioned from a mainstream manufacturer to one that also produced luxury vehicles. The original 1990 LS 400 provided an impeccably built full-size luxury sedan with V-8 power for about the same price as mid-size six-cylinder competitors from Mercedes and BMW, and customers took notice in a big way. How big? Lexus is now the most popular luxury automotive brand in the U.S., selling around 300,000 cars and trucks per year, and they routinely lead JD Power quality surveys.
As noted above, the LS 460 is Lexus’ first foray into the rarified premium luxury market. Dominated by Mercedes and its iconic S-class sedan, this highly coveted market segment offers rich financial and image-related rewards. Can Lexus do here what they did to the mainstream luxury market? Time will tell.
OK, what about the car, already? As I said, it’s almost beside the point, but the LS460 is a very good car. Available in standard and long wheelbase versions, the LS 460 provides all the luxury features premium luxury buyers would expect, and a few extra doodads they might not.
All 2007 LS models come with an all-new 4.6-liter V-8 with “intelligent” dual variable valve timing. This is the world's first electrically controlled valve timing system, replacing hydraulic valves to improve cold-start performance, increase power and boost fuel economy. Despite its (relatively) small displacement, this engine makes almost as much power – 380 HP and 367 lb-ft torque – as the 5.5-liter V-8 in the Mercedes-Benz S550. Lexus pairs its new motor with an eight-speed automatic transmission that has fewer parts and is lighter than the previous six-speed unit. First and second gears are low to improve launch performance, and gears three through eight have closer ratios for better fuel economy. Yes, eight-speeds are more than anyone else gives you and the idea seems like overkill, but it works: the sedan's estimated EPA ratings of 19 city/27 highway are up noticeably from the 18/25 numbers from the LS 430, and the gear changes are almost imperceptible during everyday driving.
Standard LS models are pretty cushy, but a long options list includes the world’s first Advanced Parking Guidance System for hands-free parking, GPS navigation with back-up camera, XM smart-traffic navigation (in 22 cities – yes, San Antonio is included), Bluetooth telephone capability, Lexus Link, radar-guided smart cruise control and pre-collision systems, rear seat climate control and entertainment, power-operated rear window shades, and, in the L-model, the right-rear recliner with ottoman and back massager.
The most interesting of this impressive list of gadgets is the Advanced Parking Guidance System, an amazing system that takes care of parallel parking for you. To activate it, all you need to do is position the LS next to and slightly ahead of the vehicle in front of the parking space, and identify the destination parking spot on the backup camera screen. Then, using the camera, parking sensors and electric power steering, the car parks itself. You control the speed with the brake and stop the car when you’re in the space, but the car’s computers do everything else. Like I said, amazing.
With all that luxury, you might think the new LS would be a slug on the road, but you’d be wrong. Zero-to-60 times are in the mid six-second range, and the LS handles surprisingly well for a large sedan. The LS is no M5, of course, and the overall experience is more luxury cruiser than boy racer, but the LS 460 can scoot when you need it to.
It’s worth pointing out that the previous LS was quick and handled well too, but that superb sedan never got the respect the new model is already getting. Why? Probably because the LS 430 looks pretty ordinary while the 460 looks somewhat imposing with a presence its predecessor lacked. In fact, the LS 460’s design is fairly derivative, incorporating elements from the IS 350, LS 400, and BMW 7-series, but there’s an intangible something there that says “CEO-mobile.” It’s the same feeling you get when you look at the Mercedes S-class or BMW 7-series, and it’s a necessary element for any car in this class.
As Lexus marches toward luxury car dominance, it was inevitable it would tackle the premium end of the market and challenge the Germans. Whether or not the LS 460 is able to attract those customers remains to be seen, but it’s certainly a quality piece with luxury features and gizmos galore. If I ran BMW or Mercedes, Lexus’ latest offering would make me nervous.
