1980s: The F1 project

In 1983, Toyota chairman Eiji Toyoda summoned a secret meeting of company executives, to whom he posed the question, “Can we create a luxury vehicle to challenge the world's best?” This question prompted Toyota to embark on a top-secret project, code-named F1 (“Flagship” + “No. 1 vehicle”). The F1 project, whose finished product was ultimately the Lexus LS 400, aimed to develop a luxury car that would expand Toyota’s product line, giving it a foothold in the premium segment and offering both longtime and new customers an upmarket product. The F1 project followed the success of the Toyota Supra sports car and the luxury Toyota Cressida models. Both the Supra and Cressida were rear-wheel drive cars with a powerful 7M-GE/7M-GTE engine. The opportunity for Japanese manufacturers to export more expensive models had arisen with the 1980s voluntary export restraints, negotiated by the Japanese government and U.S. trade representatives, restricting mainstream car sales. In 1986, Honda launched its Acura marque in the U.S., influencing Toyota's plans for a luxury division. Around the same time, Nissan would unveil plans to create its own luxury division, Infiniti, while Mazda also considered developing a luxury division, to be called Amati.

Toyota researchers visited the U.S. in May 1985 to conduct focus groups and market research on luxury consumers. That summer, several F1 designers rented a home in Laguna Beach, California to observe the lifestyles and tastes of American upper-class consumers. Toyota’s market research concluded that a separate brand and sales channel were needed to present its new luxury flagship, and plans were made to develop a new network of dealerships in the U.S. market.

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Lexus

Lexus is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of luxury cars. As of 2009, Lexus vehicles are officially marketed in over 70 countries and territories worldwide. The Lexus marque has ranked among the top ten Japanese global brands in market value. The division's world headquarters are located in Toyota, Aichi, Japan, with operational centers in Brussels, Belgium, and Torrance, California, United States.

Lexus originated from a clandestine flagship sedan project that began in 1983. This effort developed into the original Lexus LS, which was the first vehicle to wear the Lexus marque upon its launch in 1989. In following years, Lexus added sedan, coupé,convertible, and SUV models. In 2005, a hybrid version of the RX crossover debuted, and additional hybrid models were subsequently introduced to the Lexus lineup. In 2007, Lexus launched its F marque performance division with the arrival of the IS Fsport sedan.

From the start of production, Lexus vehicles have been consistently produced in Japan, with manufacturing centered in the Chūbu and Kyūshū regions, and in particular at Toyota's Tahara, Aichi, Chūbu and Miyata, Fukuoka, Kyūshū plants. Assembly of the first Lexus built outside the country, the Ontario, Canada-produced RX 330, began in 2003. Following a corporate reorganization from 2001 to 2005, Lexus operates its own design, engineering, and manufacturing centers, solely responsible for the division's vehicles.

Since the 2000s, Lexus has increased sales outside its largest market in the United States through an ongoing global expansion. The division inaugurated dealerships in Japan's domestic market in 2005, becoming the first Japanese luxury car marque to launch in its country of origin. Further debuts in Southeast Asia, Latin America, and other export regions have since followed. The division's lineup has also been expanded to reflect regional specifications in model and powertrain configurations.

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1998–present

The financial crisis that gripped Asia in July of that year set the stage for another ownership change. The new chairman of Volkswagen AG, Ferdinand Piëch, grandson of Volkswagen's founder, Ferdinand Porsche, went on a buying spree through 1998, which included the acquisition of Lamborghini for around $110 million. Lamborghini was purchased through Volkswagen's luxury car division, AUDI AG. Audi spokesman Juergen de Graeve told the Wall Street Journal that Lamborghini "could strengthen Audi's sporty profile, and on the other hand Lamborghini could benefit from our technical expertise."

Only five years after leaving American ownership, Lamborghini was now under German control. Yet again, the troubled Italian automaker was reorganized, becoming restructured into a holding company, Lamborghini Holding S.p.A., with Audi presidentFranz-Josef Paefgen as its chairman. Automobili Lamborghini S.p.A. became a subsidiary of the holding company, allowing it to focus specifically on designing and building cars while separate interests took care of the company's licensing deals and marine engine manufacturing. Vittorio Di Capua originally remained in charge, but eventually resigned in June 1999. He was replaced by Giuseppe Greco, another industry veteran with experience at Fiat, Alfa Romeo, and Ferrari. The Diablo's final evolution, the GT, was released, but not exported to the U.S., its low-volume production making it uneconomical to go through the process of gaining emissions and crashworthiness approval.

In much the same way that American ownership had influenced the design of the Diablo, Lamborghini's new German parent played a large role in the creation of the Diablo's replacement. The first new Lamborghini in more than a decade, known internally as Project L140, represented the rebirth of Lamborghini, and was named, fittingly, for the bull that originally sired the Miura line that had inspired Ferruccio Lamborghini almost 40 years before: Murciélago. The new flagship car was styled by Belgian Luc Donckerwolke, Lamborghini's new head of design.

Under German ownership, Lamborghini found stability that it had not seen in many years. In 2003, Lamborghini followed up the Murciélago with the smaller, V10-equipped Gallardo, intended to be a more accessible and more livable than the Murciélago. In 2007, Wolfgang Egger was appointed as the new head of design of Audi and Lamborghini, replacing Walter de'Silva, who was responsible for the design of only one car during his appointment, the Miura Concept of 2006.

2008 saw the release of the Murciélago-derived, stealth fighter-inspired Reventón, an extremely limited-edition supercar that carried the distinction of being the most powerful and expensive Lamborghini ever sold. The most recent models released are the 2009 Murciélago LP 670-4 SV, a SuperVeloce version of Lamborghini's halo supercar, and the 2009 Reventón Roadster. The automaker has recently seen sales begin to decrease from a high of 2,580 units in 2007; the slide in sales, attributed to the effects of the world financial crisis, led CEO Stephan Winkelmann to predict poor sales for supercars through 2011. In 2010, the automaker produced the 4,000th Murciélago, an LP 670-4 SV, destined for delivery in China. At the time, the growing Asia-Pacific vehicle market represented 25 percent of Lamborghini's sales.

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1994–1997

Chrysler began looking for someone to take Lamborghini off its hands, and found it in a holding company called MegaTech. The company was registered in Bermuda and wholly owned by Indonesian conglomerate SEDTCO Pty., headed by businessmen Setiawan Djody and Tommy Suharto, the youngest son of then-Indonesian President Suharto. By February 1994, after $40 million had changed hands, Lamborghini had left Italian ownership, and MegaTech took over the automaker, its Modena racing engine factory, and the American dealer interest, Lamborghini USA. Djody, who also owned a 35% stake in troubled American supercar manufacturer Vector Motors, thought Vector and Lamborghini might be able to collaborate to improve their output. Michael J. Kimberly, formerly of Lotus, Jaguar and executive vice-president General Motors, was appointed president and managing director. After reviewing the entire Lamborghini operation, Kimberly concluded that the company needed to expand its offerings from more than just one or two models, and provide a car accessible to American car enthusiasts. He implemented a marketing strategy to raise awareness of Lamborghini's heritage and mystique. In 1995, Lamborghini produced a hit, when the Diablo was updated to the top-end SuperVeloce model. But in 1995, even as sales were climbing, the company was restructured, with Tommy Suharto's V'Power Corporation holding a 60% interest, MyCom Bhd., a Malaysian company controlled by Jeff Yap, holding the other 40%.

Never leaving the red despite its increase in sales, in November 1996 Lamborghini hired Vittorio di Capua as President and CEO, hoping that the veteran of more than 40 years at auto giant Fiat S.p.A. could finally make the sports car maker profitable again. Di Capua immediately launched cost-cutting measures, letting go of a number of company executives and consultants, and overhauling production in order to achieve a 50 percent gain in productivity. In 1997, Lamborghini finally passed its break-even point, selling 209 Diablos, thirteen more than it needed to be profitable. Di Capua also leveraged the Lamborghini name and identity, implementing aggressive merchandising and licensing deals. Development of the "baby Lambo" finally began, moving forward with a $100 million budget.

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1987–1993

In April 1987, in an acquisition spearheaded by Chrysler chairman Lee Iacocca, the American company took control of the Italian automaker, after paying out $33 million to the Mimrans. According to Jolliffe, the Mimran brothers were the only owners of Lamborghini to ever make money out of the company, having sold it for many times the dollar amount they paid for it six years earlier.

Iacocca, who had previously orchestrated a near-miraculous turnaround of Chrysler after the company nearly fell into bankruptcy, carried out his decision to purchase Lamborghini with no challenges from the board of directors. Chrysler people were appointed to Lamborghini's board, but many of the company's key members remained in managing positions, including Alfieri, Marmiroli, Venturelli, and Ceccarani. Ubaldo Sgarzi continued in his role as head of the sales department. To begin its revival, Lamborghini received a cash injection to the tune of $50 million. The automaker's new owner was interested in entering the "extra premium" sports car market, which it estimated at about 5,000 cars per year, worldwide. Chrysler aimed to produce a car to compete with the Ferrari 328 by 1991, and also wanted the Italians to produce an engine that could be used in a Chrysler car for the American market. The decision was made to finally take the company into motorsport; the effort would be known as Lamborghini Engineering S.p.A., and would develop engines for Grand Prix teams. The new division was based in Modena, and given an initial budget of $5 million. Danielle Audetto would be the manager, and Emile Novaro the president; their first recruit was Mauro Forghieri, a man with a stellar reputation in the world of motorsport, who had formerly managed Ferrari's Formula 1 team. Forghiere set about designing a 3.5-litre V12 engine, independent of road-car engine design undertaken at Sant'Agata.

At the time, Lamborghini was working on a successor to the Countach, the Diablo. The car's original design had been penned by Marcello Gandini, the veteran who had penned the exterior appearances of the Miura and the Countach while working for coachbuilder Bertone. However, Chrysler executives, unimpressed with Gandini's work, commissioned the American car-maker's own design team to execute a third extensive redesign of the car's body, smoothing out the trademark sharp edges and corners of Gandini's original design; the Italian was left famously unimpressed with the finished product.^[47][48] The Diablo had been intended for release in time for September 1988, when Lamborghini would celebrate its 25th anniversary; once it was clear that mark would be missed, a final version of the Countach was rushed into production instead.^[49] The Anniversary Countach was later acclaimed as the finest version of the car to be built.^[50]

By the end of 1987, Emile Novaro had returned from his long recovery, and used his authority to halt Chrysler's increasing interference in the development of the Diablo. Much to the chagrin of the Fighting Bull, Chrysler exhibited a four-door concept car at the Frankfurt Auto Show, badged as a 'Chrysler powered by Lamborghini'. The Portofino was poorly received by the motoring press and Lamborghini's employees alike, but went on to become the inspiration for the Dodge Intrepid sedan.

In April 1988, the Bertone Genesis, a Quattrovalvole V12-powered, Lamborghini-branded vehicle resembling a minivan was debuted at the Turin motor show. The unusual car, intended to gauge public reactions, was abandoned, a misfit in both Lamborghini's and Chrysler's product ranges. The Genesis had been commissioned alongside the new "baby Lambo" that would replace the Jalpa, occupying the then-empty space below the Diablo in Lamborghini's lineup. The project had been allocated a $25 million budget, with the prospect of selling more than 2,000 cars per year.

The Diablo was released to the public on January 21, 1990, at an event at the Hotel de Parisin Monte Carlo. The Diablo was the fastest car in production in the world at the time, and sales were so brisk that Lamborghini began to turn a profit. The company's U.S. presence had previously consisted of loosely affiliated and disorganized private dealer network; Chrysler established an efficient franchise with full service and spare parts support. The company also began to develop its V12 engines for powerboat racing. Profits increased past the $1 million mark in 1991, and Lamborghini enjoyed a positive era.

The uptick in fortunes was to be brief; in 1992, sales crashed, as the $239,000 Diablo proved ultimately to be unaccessible to American enthusiasts. With Lamborghini bleeding money, Chrysler decided that the automaker was no longer producing enough cars to justify its investment.

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1978–1986

As the years passed, Lamborghini's situation became even more dire; the company entered bankruptcy in 1978, and the Italian courts took control. They first appointed Dr. Alessandro Arteses to run the company's operations, but a year later, Raymond Noima andHubert Hahne, who was Lamborghini’s German importer, were appointed to take over the running of the company. In 1980, the Swiss Mimran brothers (Jean-Claude and Patrick), famed food entrepreneurs with a passion for sports cars, were appointed to administer the company during its receivership. During administration, the automaker reworked the failed Silhouette into the Jalpa, which was powered by a 3.5-litre V8 that had been modified by former Maserati great, Giulio Alfieri. More successful than the Silhouette, the Jalpa came closer to achieving the goal of a more affordable, livable version of the Countach. The Countach was also updated, finally allowing it to be sold in the U.S. with the release of the LP500 model in 1982. By 1984, the company was officially in the hands of the Swiss. The Mimrans began a comprehensive restructuring program, injecting large amounts of capital into the floundering automaker. The Sant'Agata facilities were rehabilitated, and a worldwide hiring campaign to find new engineering and design talent began in earnest.

The immediate results of the investment were good. A Countach "Quattrovolve", producing a mighty 455 bhp, was released in 1984; the fumbling Cheetah project resulted in the release of the Lamborghini LM002sport utility vehicle in 1986. However, despite the Mimrans' efforts, the investments proved insufficient to revive the company. Seeking a large, stable financial partner, the brothers met with representatives of one of America's "Big Three" automakers, the Chrysler Corporation.

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1971–1972

As a world financial crisis began to take hold, Ferruccio Lamborghini's companies began to run into financial difficulties. In 1971, Lamborghini's tractor company, which exported around half of its production, ran into difficulties. Cento, Trattori'sSouth African importer, cancelled all its orders. After staging a successful coup d'état, the new military government ofBolivia cancelled a large order of tractors that was partially ready to ship from Genoa. Trattori's employees, like Automobili's, were unionized and could not be laid off. In 1972, Lamborghini sold his entire holding in Trattori to SAME, another tractor builder.

The entire Lamborghini group was now finding itself in financial troubles. Development at the automaker slowed; the production version of the LP500 missed the 1972 Geneva Show, and only the P400 GTS version of the Jarama was on display. Faced with a need to cut costs, Paulo Stanzani set aside the LP500's powerplant, slating a smaller, 4-litre engine for production. Ferruccio Lamborghini began courting buyers for Automobili and Trattori; he entered negotiations with Georges-Henri Rossetti, a wealthy Swiss businessman and friend of Ferruccio's, as well as being the owner of an Islero and an Espada. Ferruccio sold Rossetti 51% of the company for US$600,000, thereby relinquishing control of the automaker he had founded. He continued to work at the Sant'Agata factory; Rossetti rarely involved himself in Automobili's affairs.

1973–1977

The 1973 oil crisis plagued the sales of high performance cars from manufacturers around the world; the rising price of oil caused governments to mandate new fuel economy laws, and consumers to seek smaller, more practical modes of transportation. Sales of Lamborghini's exotic sports cars, propelled by high-powered engines with little consideration for fuel efficiency, (the 1986 Countach, powered by a 5.2-litre evolution of the V12 engine, had a 6 mpg_-US (39 L/100 km; 7.2 mpg_-imp) city and 10 mpg_-US (24 L/100 km; 12 mpg_-imp) highway United States Environmental Protection Agencyrating) suffered greatly.

In 1974, Ferruccio Lamborghini sold his remaining 49% stake in the company to René Leimer, a friend of Georges-Henri Rossetti. Having severed all connections with the cars that bore his name, he retired to an estate on the shores of Lake Trasimeno, in the frazione of Panicarola in Castiglione del Lago, a town in the province of Perugia in the Umbria region of central Italy, where he would remain until his last days.

In 1974, the LP500 finally entered production as the Countach, powered by a smaller, 4.0-litre V12. The first production model was delivered in 1974. In 1976, the Urraco P300 was revamped into the Silhouette, featuring a Targa top and a 3-litre V8. Its poor build quality, reliability, and ergonomics all worked against it, as did the fact that it could only be imported into the U.S. via the "grey market". Only 54 were produced. The Countach was also hampered by its lack of direct participation in the American market until the LP500 version, released in 1982.

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1969–1970

In 1969, Automobili Lamborghini encountered problems with its fully unionized work force, among which the machinists and fabricators had begun to take one-hour token stoppages as part of a national campaign due to strained relations between the metal workers' union and Italian industry. Ferruccio Lamborghini, who often rolled up his sleeves and joined in the work on the factory floor, was able to motivate his staff to continue working towards their common goal despite the disruptions.

Throughout that year, Lamborghini's product range, then consisting of the Islero, the Espada, and the Miura S, received upgrades across the board, with the Miura receiving a power boost, the Islero being upgraded to "S" trim, and the Espada gaining comfort and performance upgrades which allowed it to reach speeds of up to 100 mph (160 km/h). The Islero was slated to be replaced by a shortened yet higher-performing version of the Espada, the Jarama 400GT. The 3.9-litre V12 was retained, itscompression ratio increasing to 10.5:1.

By the time the Jarama was unveiled at the 1970 Geneva show, Paulo Stanzani was at work on a new clean-sheet design, which would use no parts from previous Lamborghini cars. Changes in tax laws and a desire to make full use of the factory's manufacturing capacity meant that the Italian automaker would follow the direction taken by Ferrari, with its Dino 246 and Porsche, with its 911, and produce a smaller, V8-powered 2+2 car, the Urraco. The 2+2 body style was selected as a concession to practicality, with Ferruccio acknowledging that Urraco owners might have children. The single overhead cam V8 designed by Stanzani produced 220 bhp at 5000 rpm. Bob Wallace immediately began road testing and development; the car was to be presented at the 1970 Turin motor show.

In 1970, Lamborghini began development of a replacement for the Miura, which was a pioneering model, but had interior noise levels that Ferruccio Lamborghini found unacceptable and nonconforming to his brand philosophy. Engineers designed a new, longer chassis that placed the engine longitudinally, further away from the driver's seat. Designated the LP500 for its 4.97-litre version of the company's V12, the prototype was styled byMarcello Gandini at Bertone. The car was presented was debuted at the 1971 Geneva Motor Show, alongside the final revision of the Miura, the P400 SuperVeloce. Completing the Lamborghini range were the Espada 2, the Urraco P250, and the Jarama GT.

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