Lexus, the luxury division of Toyota, has cut prices on its 1998 lineup – in one case by as much as $14,000.

Wayne Jefferey, vice-president of Lexus Canada, says while the new prices will no doubt help the division to compete, it has been a Toyota policy to adjust prices downward whenever possible. He says the company was able to reduce its costs and that those savings are simply being passed on to the consumer.

The price cuts vary from model to model, but are especially evident with the GS300, which fell to $58,000 from $72,000 in 1997.

Concurrent with the price cut, Lexus has announced its entry into a new sub-segment of the sports utility vehicle (suv) category, that of the sports luxury vehicle.

The RX300, an all-new model, and the LX470, a redesign of the LX450, go into production in Japan at the end of January and are expected to be available in Canada by the end of March or early April as 1999 models.

While the LX470 is a luxury land cruiser priced in the low $80,000 range and occupies the same territory as the Range Rover, Jefferey says the RX300, which has a lower step up and is more responsive and comfortable than traditional sport utility vehicles (suvs), is more appealing to women.

The Lexus 1998 lineup – including the luxury flagship LS400, the GS300 and GS400 performance sedans, and the entry level ES300 – is being promoted with a new campaign from SMW Advertising of Toronto. The campaign includes national print advertising, color newspaper inserts and a made-in-Canada 30-second spot for the gs series called ‘Darn Bugs.’

All advertising uses the Lexus tag line, ‘The Relentless Pursuit of Perfection.’