AC

When Toyota was preparing for the 1989 launch of Lexus, the man appointed to birth the luxury brand, J. Davis Illingworth, often said: "We don't have a single dissatisfied customer." Disingenuous, of course, because the gestating Lexus had no customers at all. But the strongly implied remainder — "… and we intend to keep it that way" — helped raise the bar for luxury car brands. But now, after phenomenal growth that made Lexus the top-selling luxury auto brand in the U.S. from 2001 through last year, the marque is tumbling. This year, it's unlikely to finish better than third behind BMW and Mercedes-Benz. Worse, its once-unassailed reliability and its engaging, concierge-style sales process have withered, leaving the previous standard-bearer to chase other brands, according to recent reliability and sales satisfaction surveys by consultant J.D. Power and Associates. Lexus faltered by failing to have a regular flow of new designs to keep excitement percolating, just as it also...