This brings us to the issue of price. When it was introduced in 1990, the LexusLS 400 was a bargain at about $36,000. But as the car quickly established itself as something special, the prices soared just as quickly. By 1994, the base price was just over $51,000 - still a terrific car, but no longer a bargain.
When we drove the new model last summer, there was informal talk about a base price of $60,000. As you'd expect, this didn't meet with much enthusiasm. And for the time being, at least, Toyota has decided to hold the line on the LS 400's base price to the $51,000 area.
That's still not a bargain, but the car is competitively priced versus its chosen targets, which include the bigger BMW and Mercedes sedans, as well as the Infiniti Q45. (Lexus doesn't regard the Cadillac Seville, new Lincoln Continental or relatively inexpensive Oldsmobile Aurora as key competitors. We don't agree with this position; we suspect you don't either.)
Nevertheless, there's no denying the elegant refinement and inventive engineering of this new car.
But the world's luxury carmakers shouldn't worry too much about the superb new LS 400. Instead, they should worry about what Lexus is going to do next.