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If the idea of a Japanese sports car would have been laughable in 1965, the idea that a Japanese company could one day take the best European luxury sedans have seemed the idea quite crazy that he could actually success was too outlandish to contemplate yet that is exactly what happened in 1989. this week, we look at the origins of the Lexus LS400 1990-2000.
we can have Ronald Reagan in one of the ironies of life Odder, thanks to the rise of the Japanese luxury brands.
During the 1970s, the US market share of imported cars has increased from 11 2 1969 28 2 1980 Most of the gain was made by Japanese manufacturers, mainly Toyota, Nissan and Honda, which small cars more economical in fuel performed well following the 1973 1974 OPEC embargo and energy crisis end of seventy years together, Ford, Chrysler and AMC suffered a sharp decline income which brought them to the brink of collapse Before long, Detroit begged Washington trade restrictions to stem the tide of Japanese imports.
Reagan was ostensibly conservative free market, but he was reluctant to ignore the protests of big business in March 1981, shortly after Reagan took office, its international trade negotiator, William Brock approached Naohiro Amaya Japanese Ministry International Trade and Industry MITI to discuss voluntary trade restrictions as an alternative to higher tariffs or other more punitive sanctions.
Amaya understood what was at stake and played his cards very cleverly indeed he convinced Brock to accept a short-term voluntary cap on imported Japanese cars, initially set at 1,685,000 a year, the ceiling was strictly digital; there was no stipulation on the type of cars that could be imported and their prices.
The case was a hard sell in Japan the Toyota leadership resists limits and Amaya would have had to worship the Nissan President Takashi Ishihara to persuade him not to oppose the deal, however, Japanese automakers finally conceded to reluctantly and import plug known AUTOLIMITATION VRA Agreement entered into force in mid-1981 in the coming years, the Japanese auto industry slowly recognize that the case was not so much a limitation as a golden opportunity .
Until that time, Japanese automakers have focused on the lower end of the US market Nissan, of course, had a key in the sports car segment with the Datsun 240Z, but most Japanese imports were compact economy cars.
To some extent, these self-imposed limitations may have reflected a deep insecurity about the place of the Japanese auto industry in the world recently the fifties, he hadn t had much market for passenger cars in Japan and major Japanese manufacturers first export efforts were cautious, stopping, and not always particularly successful, the risk of failure and embarrassment may not have deterred small businesses like Honda or Mazda Toyo Kogyo, but it was a important concern for Toyota and Nissan, which was the big fish in the domestic market.
In addition, the small U car market was a relatively easy target; Detroit record with subcompact cars was checkered and enthusiasm for this segment was limited at best by contemporary American standards, average Japanese family sedans companies like Toyota Corona and Datsun Bluebird were tiny, but the Japanese could offer more features and a higher level of fit and finish but not a better corrosion resistance than their US rivals spec poverty.
These same factors have made Toyota and Nissan are reluctant to develop or even offer their larger cars in the US In Japan, Toyota six-cylinder of the Crown or Nissan Cedric was a big impressive car roughly equivalent a Ford LTD or Chevrolet Caprice in the United States Crown didn t qualify even as an intermediary, competing instead with the likes of the Ford Maverick or AMC Hornet Toyota imported Crown few, but commercialization of the United States was minimal this Toyota Motor sales Executive Vice President Shoji Hattori admitted was intentional smaller Corolla and Corona did most US sales of Toyota.
Toyota Crown was the top of the JDM Toyota line except the few Toyota century, generally limited to VIP but was a rare sight on the roads US This is a 1972 MS70 Crown hardtop two doors marketed as cut in the U S.
It was as long as the Japanese economy was relatively healthy, which for the most part, it was in the seventies and eighties and Japanese automakers could expect from them from beyond the markets sea to grow indefinitely, so gradually the sudden imposition of a sales cap on their largest single export market has forced Japanese manufacturers to rethink their strategy if their sales in the US couldn t grow at least until 'that they have set up local production, something many Japanese manufacturers already working, they should focus their attention on the volume of sales to the unit it was time to move upscale.
The process began gradually most Japanese cars sold in the United States already had high levels of content compared to US standards, including many minor elements that were at least technically expensive additional options on most domestic cars fully equipped models selling allowed Japanese automakers to simplify their export offers, while creating a sense of value.
Since car manufacturers are now limited in the number of units they could ship, each manufacturer has started to make each car, he ship was even better stocked, better equipped and more expensive than they Toyota had already dared brought more than six-cylinder cars in the US, including the latest Mark II sedan called Cressida in the States and the Celica sports coupe XX, called Celica Supra Nissan in the US responded with a version federalization of its 810 plush Maxima Honda finally got into the act, too, with products like the Accord SE Special Edition sedan, which featured Connolly leather upholstery and fancy Wilton carpet.
The Japanese soon discovered that American buyers whose appetites had been whetted by a generation of solidly built cars, reliable, small efficient were happy to pay a premium for a better equipped version of the same thing and were ready to move on to something more.
As galling as the VRA may have been Toyota management, Nissan and Honda, it seemed to inspire them to more daring things in 1983, Honda and Rover Group British Austin began a joint venture to create a new luxury sedan six-cylinder code-named XX, which eventually emerged as the Honda Acura Legend.
At that time, Yukiyasu Togo, recently appointed president of the commercial organization in the United States of Toyota, was president of the company Eiji Toyoda and suggested that Toyota produce above and luxury sedan upscale Toyoda thought embraced the idea, seeing it as a 50th birthday editing project ahead of Toyota, though it turned out, the car wouldn t is actually available until nearly two years later.
Toyota could have redecorated his house on Crown Market, which was a step in the size and price of the brand Cressida II, and took a few pieces of the lower end of the American luxury market, but Eiji Toyoda had greater game in mind August 1983, he convened a confidential meeting of its senior management and proposed the development of a new ultra-luxury sedan to go head to head with the world's best automotive Toyoda had not been right after Volvo and Cadillac; he wanted to BMW and Mercedes.
Pushing the Germans on their own turf was a big step Even Cadillac, which had benefited from over 20 years of dominance almost unchallenged in American luxury car scene, was now running scared BMW to growth Mercedes-Benz, meanwhile, was rapidly establishing itself as a key status symbol for American yuppies Ersatz Mercedes grids sprang on even the humblest American sedans, while BMW had become the darling of the automotive press .
Yet as powerful as the Germans had become, they were also vulnerable Their greatest weakness was the price; a combination of currency revaluation, inflation and pure greed had sent their sticker prices through the roof In the early eighties, the cheaper sedans 5 of the midsize series BMW was d about 25,000 in the United States and most of the Mercedes were above 30,000 three times the price of a Honda Accord sedan and nearly 50 more than a Cadillac Seville American buyers seem willing to pay whatever was asked for the BMW roundel or the three-pointed star, but there was a large gap between prices attractive American upper middle class brands and Germans.
Moreover, despite BMW's and Mercedes vaunted engineering excellence, their products are not quite in harmony with the American taste People bought them for their prestige, which tended to eclipse that by American standards, most BMW and Mercedes sedans had a steep climb, interior appointments austere and engine six cylinder Mercedes also offered a V8, but he pushed the price even further into the stratosphere magazines popular cars Germans nature unadorned and Bred-for-Autobahn road manners, but this behavior led significant compromises in American conduct routine that, too, suggested the occasion.
The Honda Legend sold as Acura Legend in North America was the first really high-end Japanese cars for the export market, although it was actually developed in partnership with Rover about the size of an Audi contemporary 4000, the legend was powered by a V6 initially in 2494 cc 152 cu in engine with 151 hp 113 kilowatts SAE later 2675 cc 165 cu in 160 hp 120 kilowatts This is 1990, the last year of the first generation pictures 1990 Acura Legend 2007 Kentaro Matsui; released into the public domain by the photographer, resized by Aaron Severson.
In the domestic market, Toyota already had a high-end car of all kinds, large Toyota Century Introduced in 1967, the century was about the size of the S-Class shorter Mercedes wheelbase and offered a V8 engine, rare in However the Japanese market, Toyota has never exported the century and his style and engineering have been dated; Toyota has withstood frequent model changes in hopes of isolating the century of fashion trends He was a very conservative car, sold mainly to business leaders and politicians who needed a Japanese limo is appropriate formal, so many wealthy private buyers prefer the snob value and greater individuality of aliens battle with the Germans, Toyota would need something entirely new.
The new luxury car was the F1 project with code name Flagship F means rather than Formula Toyota spared no expense; at its height, the development program involved some 3,700 engineers and technicians in 24 separate engineering teams All these resources have been directed to the creation of a single product a luxury sedan or sharing new platform or engine with a then existing Toyota model.
An American automaker would probably have chosen a single target as contemporary Mercedes W126 S-Class sedan, designed something similar, allowed to be shrinking by accountants, and tried to make a difference with prices reduced rate because Detroit has just applied this philosophy to challenge imports for almost 40 years, however, the chief engineer of Toyota project, Ichiro Suzuki was determined to beat Mercedes and BMW in all parameters It was a very large order, and setting such an ambitious goal speaks volumes about Toyota Honda legend ambitions, by comparison, was the Audi 80 4000, a much less formidable target, and even the legend was a collaborative effort with the automaker Rover UK.
Toyota's engineers army completed the first prototype running of the new sedan in July 1985 a fleet of development mules spent much of 1986 in many road tests on both German and Autobahnen American roads Toyota eventually built 450 prototypes running, a remarkable number even for a clean sheet design.
One of the key points of the F1 project was its engine a new V8 DOHC V8 is an important part of Toyota's plan to blow up the Germans, but it was a risky decision in the fuel-crunched late seventies, many industry experts believed that the V8 would be extinguished in 1985, a victim of rising fuel prices and federal CAFE rules when the first prototypes were ready, though, gasoline was again cheap and abundant in United States so that US buyers were rediscovering their love of Toyota horses spent 400 million to develop a new sophisticated DOHC, 32-valve, 3968 cc 242 cu in engine, the FE-1UZ it was expensive, but it turned out to be a wise investment.
The Lexus LS400 3968 cc 242 cu in V8, known as 1UZ Toyota-FE, was brand new, he used an aluminum block and head and comprised two camshafts head, four valves per cylinder and a sophisticated engine computer that managed the fuel injection, ignition and controls transmission at launch, it was rated at 250 hp SAE 187 kw and 260 lb-ft 353 Nm of torque to the States -United; the Japanese market Toyota Celsior was rated at 260 PS JIS 191 kw and 261 lb-ft 353 Nm of torque, the differences mainly reflecting minor variations of the Toyota test methodology also used 1UZ engine design basis for successfully racing engines and later developed an iron block version to use in its big trucks and SUVs.
In early 1985, Yukiyasu Togo and head of Toyota Motor Sales, gently suggest that if Toyota wanted to sell the car to another customer class, he needed to study closer to customers the upscale target market for the F1 project , Togo out, had a very different set of standards than American buyers Corolla or even Japanese luxury car customers in response, in May of this year, Toyota sent a market research team to explore the high market range of perhaps their most unusual ploy quietly rented a posh house in Laguna Beach, California, so that their researchers could observe the rich American consumer in its natural habitat.
The researchers came to the obvious conclusion but politically awkward Mercedes-Benz or BMW average customer would not be caught dead in a Toyota showroom or more is infuriating to Japanese executives, driving a Toyota latter revelation probably caused much gnashing of teeth between senior management Setting up a new dealer network to meet Toyota's luxury customers was something in Japan, Toyota was then six networks of different dealers, each with its own separate products, but what was the point of a Toyota flagship if it could be called Toyota.
Honda had already faced this same problem in the summer of 1985, the company announced that its new sedan Legend will be available in North America through a new brand called Acura although it was sold as Honda around the world The announcement was greeted with some skepticism, but when the Acura division bowed in March 1986, he proved to be an immediate success.
In May 1986, Toyota has swallowed his pride and hired the consulting firm Lippincott Lippincott Margulies now to help them develop a new luxury brand Meanwhile, Toyota's advertising agency, Saatchi Saatchi has set up a separate team to manage advertising for the new brand Lippincott ultimately suggested the name Lexus, which was finally adopted.
Nissan would go through a similar process to develop its brand Infiniti, but the project did not begin until November 1986, after the introduction of Acura.
In April 1985, the import limit VRA was increased to 2 to 3 million cars, where he remained until 1991. The limits will probably help American manufacturers entrenched; Chrysler and Ford, which had been on the brink of collapse in 1979, has experienced strong earnings in 1984 and 1985. However, the main effect of the VRA is contributing to the rapid increase in new car prices, already swollen by inflation rate changes and currency exchange.
The VRA also marked a fundamental change in the import market before the limits were imposed, Japanese cars were usually cheaper than their American competitors; through import restrictions and the increasing strength of the yen against the dollar, Japanese cars now typically cost more, however, buyers have shown they were willing to pay a premium for more sophisticated engineering and greater perceived quality of Japanese brands the introduction of Acura in 1986 drove this point home more clearly the legend was the most expensive Japanese car still sold in America, about 20,000 to start, but he sold honorably and enjoyed a high resale value and an enviable reliability record, both excellent signs for the future.
The import restrictions and concomitant price increases had inflated profit margins of Japanese manufacturers, who earned up to 2,000 more for each car sold These benefits, in turn, has helped fund projects like the Lexus LS400, including development costs eventually ran to about $ 1 billion.
Lexus F1 project was officially approved for production in May 1987 with the success of Acura, Toyota was more convinced than ever that there would be a market for it.
In the US and most other markets worldwide, Toyota has chosen to give his new luxury car alphanumeric designation European style Lexus LS400, LS luxury sedan and 400 for moving the engine deciliter In Japan, new car was called Toyota Celsior; Toyota wouldn t introduce the Lexus brand in the Japanese domestic market until August 2005.
The Lexus LS400 original was about the size of a modern BMW E32 7 Series and split the difference between the W124 Mercedes E-Class and S-Class sedans W126 The LS400 rode a wheelbase of 2,815mm 110 8 inches, and stretched 196 7-inch 4,995 mm overall, narrowly avoiding punitive tax some countries levied on cars over 5 meters 196 9-inch curb weight for American cars generally feature was about 3800 lb 1730 kg, approximately 45 lb 20 kg heavier with air springs optional in 1994, the wheelbase LS400 was stretched to 112 to 2,850mm 2, and the empty weight was cut to about 3600 lb 1633 kg total length remained the as previously, and increasing the wheelbase provided a slight increase in the chamber of the rear seat to the detriment of the trunk space.
Toyota decided that introducing a new brand with a single relatively expensive model was too risky Honda had covered his paris in this respect by matching the legend with an Acura Integra JDM version of V, a sport of three or five doors hatchback price less 13 000 Toyota has opted instead for a little facelift and retrimmed version of the newly added Japanese on the V20 market Camry Prominent colonnades hardtop, equipped with the largest displacement 2507 cc 152 cu in 2VZ-FE engine US Camry V6 the new model was named Lexus ES250.
The Lexus range made its debut on the tour of the US auto show in January 1989 by the time it is sold as the fall, Toyota introduced Lexus franchises 70, a number that grew to 150 by January 1990 was enhanced by a highly effective ad campaign, including a well-remembered TV commercial in which a wine glass pyramid was balanced on the hood of a Lexus LS400.
One of Toyota's Lexus goals was to provide a service to the velvet glove customer It was another dent in the armor of German premium brands, including American dealers had a reputation of arrogance abruptness Toyota required Lexus dealers offer better customer facilities and services, which has become an important part of the marketing of the brand.
The arrival of Lexus and its new rival Nissan, Infiniti, were by far the biggest news of the US industry this year The two brands have laid the foundation with teaser ads, which in the case of Infiniti, didn t even always show the car the Lexus LS400 and Infiniti Q45 became media darlings, eclipsing even ambitious new sports car Honda NSX.
The initial reaction to the Lexus LS400 was generally positive Its build quality was obvious, but his style was a well polished pastiche of Mercedes-Benz clues tasteful but deeply conservative and somewhat trivial, however, the virtues of the LS400 were He had a clear round in serene than any Cadillac, but matched the sweetness with careful handling, if not quite the agility of a large BMW Lexus power and the new engine and transmission were exceptionally quiet and refined If its interior was a bit plasticky, the Lexus was nevertheless well finished and solidly built, rivaling Mercedes efforts the European press was predictably less enthralled than their American counterparts, but even the British critics grudgingly admitted that the LS400 was some senior contemporary German rivals respects.
One area in which Lexus has a clear advantage over the Germans at least in the States was the price of the Lexus LS400 began 35,000, which was 5,000 more than the more expensive Acura Legend, but much less than the German competition price of the Lexus was slightly misleading, because most cars delivered to dealers had the luxury features of the group, with leather upholstery, sunroof and a premium audio system, which has close tab of 40,000 Nevertheless, the LS400 was still almost 10,000 less than the BMW 735i less powerful and more than 20,000 less than a Mercedes 420SEL V8 engine Cadillac Seville was a bit cheaper, but there were 70 fewer horses 52 kW less and the quality was not the same level price made the LS400 a bargain in its class.
Self-consciously doesn t look original Lexus LS400 UCF10 aero, but he had one of the lowest coefficients of drag of a contemporary car as low as 0 29 on some models, it did not lack for linear speed although most commentators found Lexus s 0-62mph claimed 0-100 km time of 6 hours 9 seconds optimistic the maximum speed is about 150 mph 242 km h.
Even BMW and Mercedes have admitted that the Lexus LS400 was an excellent car, although its attractive price prompted accusations that Toyota sells the lower LS cost the American public was impressed stay on the market research Laguna Beach Toyota has paid; Lexus marketing course in upscale US buyers turned out to be spot on in its first year, Lexus sold nearly 64,000 cars in the US It was not quite at Mercedes-Benz, whose sales the United States was 75 000, but it was close to BMW uncomfortably in 1991, Lexus sales reached 71,206, supported by the adulation press and price for the initial quality of most of these sales were LS400s, many were sales conquest to former Mercedes and BMW customers.
Lexus has not had the same impact on the European market, in part because the LS400 is not as highly price in Europe as in the US In the UK for example, the LS400 began about 32,000 , about the same as 735i for -conscious class British buyers, lack of pedigree Lexus brand was difficult to cross, as the perception that Lexus cars were just fancy Toyotas with new badges that last point has been reduced to the house with a certain irony in the case of the UK importer Simon Lerner, who in 1999 was accused of fraud in setting Lexus badges equivalent models JDM.
Tarted-up Toyota or not, the Lexus LS400 caused much interference in Munich and Stuttgart-Untertürkheim BMW has intensified the development of its first V8 engine in more than two decades, while Mercedes has moved to expand V8 availability and reduce costs to allow low price the reasons were clear after more than a decade of class to the executive, Mercedes and BMW were on the defensive.
The multi-link suspension with double Lexus LS400 triangular arm was theoretically superior to contemporary MacPherson strut BMW day parole upper arm page, but the LS was awarded more for the comfort of handling sharpness Ride quality was excellent, well some critics found a little under -damped even with stiffer suspension settings used for European models, and its direction was rather numb air springs, electronic controls, were optional for driving even plusher.
Toyota quickly began to expand the Lexus range The first additions were cut from SC400 SC300 which we will have more to say in our next episode, with a new entry-level sedan ES300 sold as Toyota Windom in Japan yet V6 fantasy Camry, but a much more convincing effort than ever in 1993, they were joined by the GS300 sedan Giugiaro style, based on the JDM Toyota Aristo and to the BMW 5 Series and Mercedes E-class
The Lexus LS400 went home with little change until 1994, although its price quickly escalated, reaching 51,200 by the Japanese market price of the model year 1994 remained stable, it seems that the main culprit the escalation of the US was the weak dollar against the yen, which makes Japanese cars more expensive.
The LS400 got its first revision in 1995. The new edition was almost indistinguishable from its predecessor, but a reengineering carefully reducing its curb weight of about 200 pounds of 90 kilograms, benefiting both performance and fuel economy, however, sales began to slip badly towards the end of its run, thanks in part to the surge in prices and domestic competition with second-generation Lexus GS revised in 2001 and 2007, the LS was still a luxury sedan very competent, but he was not as important as the original.
Toyota failed to outshine BMW and Mercedes in all areas as Ichiro Suzuki had promised, but he had managed to establish Lexus as a viable alternative, a feat for a new out-of-the-box car and a new Lexus proved much more successful than Infiniti, which didn t really establish itself until a decade later, and quickly overshadowed Acura, whose sales have dropped sharply in the early nineties.
In 2005, Toyota made Lexus a separate subsidiary organization with its own design and engineering facilities and set up a new Lexus dealer network in the home market in 2008, worldwide Lexus sales were to 430000, 270000 of them in the United States that is still well short of BMW, whose global sales plus 5 one million last year, but Lexus remains a force to be reckoned with on the luxury market .
The current LS460 is larger, nearly 600 pounds 272 kg heavier and much more expensive than the Lexus LS400 original, from about 64,000 hybrid LS600h long wheelbase starts 106000 and tips the scales at about 5 100 lbs 2300 kg.
In the second part of our history, we will consider the second phase of the assault Toyota on the luxury market Lexus SC cut.
Our account of the origins of the voluntary restraint agreement comes from David Halberstam, The Reckoning New York, William Morrow and Company, 1986; and Masaaki Sato, leaders Toyota Executive Guide trans Justin Bonsey New York Vertical, Inc. 2008 Shoji Hattori comments on the business strategy of the United States of Toyota came from Eric Dahlquist, Who's Afraid of Vega, Pinto and Gremlin not VW says Stuart Perkins No Toyota says Shoji Hattori, Motor Trend Vol 22, No 8 August 1970, p 65 68 and 103 Further information on Japanese manufacturers in this period came from Rich Ceppos, Cadillac Cimarron, Car and Driver Flight 27, No. 2 August 1981, pp 33 40; Michael A Cusumano, the Japanese auto industry management technology at Toyota Nissan Cambridge, MA, Harvard University Press, 1985; Auto Industry Guide 1967 Edition of Japan Tokyo, Japan Japan Automobile Federation Industrial, Inc. 1967; Auto Industry Guide Japan 1990 Tokyo, Japan Japan Automobile Federation Industrial, Inc. 1990; and Jack Yamaguchi, Japan The year of uncertainty, World Cars 1979 ed Annamaria Lösch Rome L Editrice dell Automobile LEA New York Herald Books, 1979 61 66.
The chronology of the development LS400 came from documents prepared by the Automobile Museum Toyota USA for the 50th anniversary of Toyota U 2007 Toyota USA Automobile Museum, toyota50th com, accessed June 13, 2009; The Lexus LS Chronology, com, accessed June 16, 2009; Toyota Motor Corporation, a history of 75 years through the whole text chronological table, com, accessed January 19, 2014; 75 years of Lineage Toyota Camry vehicle Hardtop 1 Camry Sedan 3 Celsior 1st, 2nd Celsior, Celsior 3rd, 1st Lexus ES sedan and hardtop Vista 2, 2012, com, accessed 30 January to 8 March 2014; and Toyota Motor Sales, Celsior Japanese brochure in October 1989; Celsior Japanese brochure, October 1994; Prominent new V6 and V6 Camry 4 Door Hardtop 141104-6308 Japanese brochure August 1988 We also consulted Barge giant Poll test CAR in November 1991 84 95; Patrick Bedard, Lexus LS400 preview, Car and Driver September 1989 50 55; William Jeanes, Comparative Test Find the best sedan in the world, car and driver November 1990 112 128; Maryann N Keller, Streetwise Amati What in a Name Motor Trend Vol 44, No. 2 February 1992 118, and Streetwise Infiniti luxury Lexus Versus Battle Round, Motor Trend 42, No 12 December 1990 130; Lexus LS400 The Test Bus number 4107, January 18, 1995 40 Bus 46; Kevin Smith, Test Drive Lexus ES250, car and driver 91 May 1990 96; Peter Robinson, Timken Lexus BMW to the limit, 18 September 1989 Bus; and James Cleary, easy as one, two, three, Australia in June 1992 engine, both of which are reprinted in the BMW 7 Series portfolio performance 1986-1993 ed RM Clarke Cobham, England Brooklands Books Ltd ca 2006 Some additional details came Editors Chief Auto consumer Guide, Auto Vol 90 No 1 516 1990; Mike Covello, ed imported cars Standard Catalog 1946-2002 Second Edition Iola, WI Krause Publications, 2001; and Mark Walton, The End of Gray imports RCA July 1999, pp 106 110, which examined Simon Lerner case.
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