Why it's here:
Toyota already had a stupendous reputation in the US for building cars that always started, lasted forever, and were easy in the wallet at the fuel pump.
The company could have stuck with that paradigm forever, but it thought: What if we bring the "Toyota Way" to the luxury market?
The luxury market itself was largely an invention of Reagan years; before, American simply traded their way up to the finer automobiles made by Lincoln and Cadillac. But the Germans — BMW and Mercedes — transformed from being about quality and performance to being about social status.
Enter Lexus, Toyota's effort at using its vaunted manufacturing prowess to compete with Mercedes. It was a huge risk. But it paid off. The Lexus LS400 was so good that it almost immediately created a top-tier of US luxury brands that consisted of Mercedes, BMW, and Toyota's new prestige marque.
Honda's Acura was actually the first Japanese carmaker to take the plunge in 1986, and Infiniti followed with Acura. But Lexus achieved the gold standard in 1989 — and in the process saw Toyota hit its US peak.