1990–1991 Lexus ES250: Was This Junior Lexus Toyota’s Answer To The Lincoln Versailles?

Composite image showing the left sides of a Diamond White 1991 Lexus ES250 sedan and a Medium Turquoise Metallic 1978 Lincoln Versailles sedan

In 1977, Lincoln rolled out the Versailles, a relatively compact luxury sedan that was very plainly a dressed-up version of the workaday Ford Granada/Mercury Monarch; it was dropped after less than four years and remains the butt of jokes. Twelve years later, Lexus rolled out the ES250, a relatively compact luxury sedan that was very plainly a dressed-up version of the workaday Toyota Camry; it was replaced after two year and is now the forgotten Lexus. Was the Lexus ES250 just a Japanese Versailles? Was the Versailles unfairly maligned? Let’s consider.

Right front 3q view of a blue 1978 Lincoln Versailles sedan
1978 Lincoln Versailles in Diamond Blue Metallic with Wedgewood Blue vinyl roof / Mecum Auctions

Recently, I wrote a post about the 1977–1980 Lincoln Versailles, in which I boxed it about the ears, as one is wont to do when talking about the Lincoln Versailles: It was barely even a half-effort, and its elevated price tag made it seem rather cynical. The Versailles received mostly caustic reviews and only sold about half as well as Lincoln-Mercury had hoped, but it was cheap enough to build and expensive enough to buy that it ended up being a lucrative moneymaker in spite of itself.

Right rear 3q view of a blue 1978 Lincoln Versailles sedan
1978 Lincoln Versailles in Diamond Blue Metallic with Wedgewood Blue vinyl roof / Mecum Auctions

As the comments on that post indicated, the Versailles still has its defenders, and they make a number of valid points. Lincoln-Mercury was certainly not the only automaker to indulge in that kind of obvious grille-and-decklid makeover, and if you could set aside the question of what the Versailles ought to have been, it wasn’t a terrible car, as Malaise Era domestic luxury sedans went. If your memory of the Granada/Monarch is dim or nonexistent, you might even wonder why everyone is always so mean about the Versailles.

ES 250 badge on the right taillight of a white 1990 Lexus ES250
1990 Lexus ES250 / Bring a Trailer

This got me thinking about the genre of pseudo-luxury or semi-luxury cars that the Versailles represents (the Cadillac Cimarron being the other notorious example) and what makes them succeed or fail. The Cimarron is the butt of even more jokes than the Versailles, but there are other examples that have been much more successful, like the Lexus ES. The ES has always been a dolled-up Toyota Camry, but it’s often done quite well, with global sales sometimes topping 100,000 units a year.

Low-angle front 3q view of a white 1990 Lincoln ES250 sedan
1990 Lexus ES250 in Diamond White Pearl / Bring a Trailer

The original ES, the 1990–1991 ES250, was essentially a placeholder. Toyota went all out for their “F1” project, the first Lexus LS400, which was a truly all-new and very impressive car. The “F2” project, as the ES was initially known internally, was something of an afterthought. Unlike the Versailles, which had been inspired by a particular rival (the 1976 Cadillac Seville), the main object for the F2 was to give Lexus dealers something less expensive to sell alongside the LS400, which started at around $35,000 when it debuted in fall 1989.

Press photo of the 1990 Lexus LS400 and the 1990 Lexus ES250, both in dark colors, with the ES250 raised on a podium behind the LS400

Toyota had a couple of platform options, including the RWD Soarer coupe and the latest RWD Cressida/Mark II/Chaser/Cresta, but they opted for the Camry, I think because it would be easier to keep the price where they wanted it. However, therein lay a problem: Toyota was preparing to introduce a wide-body export Camry platform, whose larger dimensions, no longer bound by Japanese restrictions on length and width, would be better-suited to the near-luxury mission, and which they could more convincingly differentiate from the regular Camry. However, that bigger Camry platform wouldn’t be ready until mid-1991, two years after the debut of Lexus. To fill the gap, Toyota opted to redress a version of the existing narrow-body V20 Camry.

Left front 3q view of a white 1987 Toyota Camry sedan
1987 Toyota Camry sedan in Super White / Bring a Trailer

The V20 Camry, introduced in North America for 1987, had been tailored specifically for U.S. tastes — it was styled by Toyota’s Calty design center in California. However, it was also sold in the Japanese domestic market, where it acquired a couple of JDM-specific spinoffs, including a “twin” called Toyota Vista (the flagship of Toyota’s Vista sales channel) and a four-door pillared hardtop body style.

Press photo showing the front 3q of a gray 1986 Toyota Vista hardtop
1986 Toyota Vista pillared hardtop in Gray Metallic

The hardtop was initially offered only in the Vista line, but starting in August 1988, it was also added to the Camry Prominent line. It was 1 inch lower and 1 inch longer than the four-door Camry/Vista sedan and had a different roofline with no rear quarter windows.

Press photo showing the front 3q view of a white 1988 Toyota Camry Prominent V6 hardtop
1988 Toyota Camry Prominent V6 hardtop in Pearl Fragrance Gran Stoning II

I already know some commenters are going to squawk about the pillared hardtop thing, so I’m going to head that off right now:

  1. That’s what these models were called, it’s not up to me;
  2. A pillared hardtop had a fairly consistent, generally understood set of design features (concealed B-pillars, frameless door glass, and a lower roof with a four-window side profile) — it wasn’t a matter of arbitrarily declaring certain four-door sedans to be hardtops;
  3. Some Japanese automakers (including Toyota) still offered some four-door pillarless hardtops in the same size/price classes, so it was useful to distinguish the one from the other.
Left rear 3q view of a white 1990 Toyota Camry Prominent hardtop with partially obscured Russian plates, parked in an alley with a row of garages
1990 Toyota Camry Prominent V6 hardtop in Super White / drive2.ru

The Camry Prominent was a fancier version of the JDM Camry with a V-6 engine and some additional features, like four-wheel disc brakes and automatic climate control. In top-line Prominent G form, it was fairly plush, and it could be ordered with features like digital instruments and TEMS electronically controlled shock absorbers.

Brochure image showing a mockup of the interior and seats of a white 1988 Toyota Camry Prominent hardtop
1988 Toyota Camry Prominent G hardtop with maroon velour upholstery

Its V-6, the 1,992 cc 1VZ-FE, was a very fancy new 24-valve DOHC engine with variable intake runners and electronic fuel injection. It wasn’t any more powerful than a decent 2-liter DOHC four, and it was gutless at low speeds, but it was slick and sweet.

Toyota four-cam V-6 engine under the hood of a white 1990 Toyota Camry Prominent
The 1,992 cc 1VZ-FE engine in the Camry Prominent V6 made 140 PS / drive2.ru

Toyota bored this out to 2,507 cc to create the 2VZ-FE engine in the U.S. Camry V-6, introduced in mid-1988.

Toyota four-cam V-6 engine under the hood of a red 1990 Toyota Camry
The 2,507 cc 2VZ-FE V-6 in a 1990 Toyota Camry LE V-6 made 156 hp and 160 lb-ft of torque / Bring a Trailer

Since the Camry Prominent hardtop had different sheet metal than the Camry sedan and was a little more upscale, Toyota decided to adapt it for Lexus duty, adding the already-federalized 2.5-liter V-6 from the U.S. Camry, a different grille, new bumper covers, and new taillights. This became the 1990 Lexus ES250, which made its U.S. debut in September 1989.

Front view of a white 1990 Toyota Camry Prominent with its headlights and amber-tinted running lights on; it has a partially obscured Russian license plate
1990 Toyota Camry Prominent V6 hardtop in Super White / drive2.ru
Front view of a burgundy 1990 Lexus ES50 with its headlights and amber-tinted running lights on; it has a California license plate
1990 Lexus ES250 in Burgundy Pearl / Cars and Bids

When the Versailles had bowed back in March 1977, it was immediately obvious to anyone with eyes that it was a Mercury Monarch with a new grille, fancy paint, and a Continental-style decklid hump. Likewise, everyone who paid attention to the ES250 when it debuted immediately recognized that it was a V-6 Camry with a new roof and a few nips and tucks.

Left front 3q view of a red 1990 Toyota Camry sedan
1990 Toyota Camry LE V-6 in Medium Red / Bring a Trailer

(I can only assume critics would have been even less impressed if they had realized that the roof and skin were borrowed from an extant JDM model; U.S. reviewers seemed to assume these changes had been contrived specifically for Lexus.)

Left front 3q view of a burgundy 1990 Lexus ES250 sedan in a parking lot
1990 Lexus ES250 in Burgundy Pearl / Cars and Bids

A V20 Camry V-6 sedan was a perfectly decent car, but it wasn’t at all exciting, and next to the knockout LS400, the similar ES250 seemed like a bowl of oatmeal served alongside a fine Kobe steak.

Right rear 3q view of a red 1990 Toyota Camry sedan
1990 Toyota Camry LE V-6 in Medium Red / Bring a Trailer
Right rear 3q view of a burgundy 1990 Lexus ES250
1990 Lexus ES250 in Burgundy Pearl / Cars and Bids

Since the ES250 was unmistakably a Camry derivative, the immediate question became how its price compared with the Camry and whether it was worth the extra money. One of the reasons the Versailles was hard to take seriously was that it cost almost twice as much as a similarly equipped Monarch. In 1990, a Lexus ES250 with automatic started at $21,800, about $2,800 more than a similarly equipped Camry LE V-6 — a premium of roughly 15 percent.

High-angle left front 3q view of a white 1990 Lexus ES250 sedan
1990 Lexus ES250 in Diamond White Pearl / Bring a Trailer

You weren’t paying ONLY for the Lexus badge and different exterior sheet metal: Just as the Versailles was quieter and smoother than a Monarch, the ES250 was quieter than a V-6 Camry, with a somewhat better ride. Unlike the soggy Lincoln, its handling was also bit more composed than its plebeian sibling, thanks to more aggressive tires, different spring and damping rates, and gas-charged struts. (The Lexus version never got TEMS adjustable shocks.)

Right side view of the dashboard and seats of a 1990 Lexus ES250
1990 Lexus ES250 with blue cloth upholstery / Bring a Trailer

You got some real wood trim on the doors and center stack, plus a standard driver’s-side airbag, which spared you the Camry’s highly obnoxious motorized shoulder belts. Antilock brakes, a pricey option on the Camry, were standard.

Dashboard of a 1990 Lexus ES250 with a moonroof and leather
1990 Lexus ES250 with optional leather trim and power moonroof / Cars and Bids

Also, choosing the ES250 over the Camry LE V-6 got you a longer warranty and the promise of cosseting Lexus customer service. (Anyone who’s dealt with the typical U.S. Toyota dealer can grasp the value of that.) The ES250 wasn’t exactly the bargain of the decade, especially since the Camry LE was already rather expensive — most Camry buyers opted for the DX four-cylinder — but it wasn’t the worst value among six-cylinder near-luxury cars.

Back seat of a 1990 Lexus ES250 with leather upholstery
1990 Lexus ES250 with optional leather trim / Cars and Bids

Nonetheless, the ES250 wasn’t quite a match for its key FWD rivals, which included the similarly priced Acura Legend and the somewhat cheaper Nissan Maxima SE. Its additional content made the ES250 heavier than a Camry, which made the 2.5-liter engine’s weak low-end torque that much more apparent, especially with automatic. (A 5-speed manual was standard, but it went into only 1,995 cars in two years.) Also, the ES250’s re-tuned suspension was still biased more towards ride than handling.

Toyota four-cam V-6 engine under the hood of a burgundy 1990 Lexus ES250
Except for the “LEXUS” lettering, the ES250’s 156 hp 2VZ-FE engine was the same as Camry V-6; it was weak at low speeds / Cars and Bids

Buff book editors inevitably wished it were more athletic, but if you wanted a quiet, comfy cruiser with a premium badge, the ES250 was quite nice, and it would have been a rewarding alternative for domestic luxury buyers (including Versailles veterans) looking to trade up. (The available color-keyed maroon and blue interiors would certainly have made them feel right at home, although Lexus didn’t offer a bench seat option.)

Left side of the dashboard and front seats of a 1990 Lexus ES250 with cloth upholstery
1990 Lexus ES250 with blue cloth upholstery / Bring a Trailer

Car and Driver editor Csaba Csere, who found “much to admire about the little Lexus,” suggested, “[I]f you’re one of those buyers who liked the idea of the defunct Cadillac Cimarron but were disappointed with its execution, take a good look at the ES250.”

Right side view of a white 1990 Lexus ES250 parked under a tree
1990 Lexus ES250 in Diamond White Pearl / Bring a Trailer

Given its various handicaps and the small size of the early Lexus dealer network, the ES250 wasn’t a terrible seller. It never sold as well as the pricier LS400, but Toyota hadn’t expected it to (something Toyota Motor Sales EVP Yale Gieszl later admitted was a miscalculation). Total ES production in its initial two-year run totaled 37,476 cars, including a few hundred sold in Canada for 1991. (That total doesn’t include JDM production of the Camry Prominent or Vista hardtop.) Total Versailles production had reached 50,156, although it lasted three and a half years rather than just two.

Right front 3q view of a burgundy 1990 Lexus ES250 sedan with tan leather upholstery and a moonroof
1990 Lexus ES250 in Burgundy Pearl / Club Lexus

Like the Versailles, I’m pretty sure the ES250 was a moneymaker: The additional development costs of the Lexus version had to have been low, and the per-car margins were likely robust. It did well enough to demonstrate that there was a viable market for a version with more room and more power, which arrived in September 1991 in the form of the Lexus ES300.

Left front 3q view of a dark red 1992 Lexus ES300
1992 Lexus ES300 in Garnet Pearl / Bring a Trailer

Just as Lincoln-Mercury had seemed somewhat embarrassed by the Versailles despite its profit margins, Toyota seemed to have been a bit chagrined by the original ES. “Nobody in the company was especially happy with the ES250,” recalled product planner Tadashi Arashima, “but we took what we could get until the ES300 arrived.” The new model quickly cleared the clouds away: Based on the wide-body XV10 Camry platform, but designed specifically as a Lexus, the ES300 sold much better than the ES250, soon outpacing the LS400 to become the bestselling Lexus model. I always thought it still looked like a Camry despite its different sheet metal and pillared hardtop roofline, but it was evidently different enough for many buyers. (The ES300 was also sold in Japan as the Toyota Windom.) The unloved ES250 was quickly forgotten — even dedicated marque histories like Chester Dawson’s Lexus: The Relentless Pursuit pay it scant attention.

Right rear 3q view of a dark red 1992 Lexus ES300
1992 Lexus ES300 in Garnet Pearl / Bring a Trailer

Thinking about all this, I pondered some of the parameters that determine whether a new model based on another existing product is likely to be a credible success or not. Here are a few of the most important ones:

  • Is the existing model well-regarded? (A minor variation of a popular product might be welcomed with open arms; a new spin on an embarrassing flop is likely to have a harder road, even if it’s a definite improvement.)
  • Is the existing model any good? (If not, the phrase “lipstick on a pig” may apply.) Does the new model inherit the flaws of the existing product, or does it attempt to mitigate those shortcomings?
  • Does the new model look recognizably different from the existing product? (It may not have to look completely different so long as it’s an appealing variation — the Mercury Sable of the ’80s and ’90s is a good example here.)
  • Is the new model meaningfully more expensive than the existing one? If so, does the new one offer anything of substance for the extra money besides a different name or more prestigious badge? (With the Lexus ES, I would consider the better warranty something of substance, at least for new car buyers; the badge cachet of driving a Lexus, not so much.)
  • Does the new model’s price or positioning put it in a market segment where the basic platform is obviously outclassed or outgunned?
Right side view of a blue 1978 Lincoln Versailles sedan
1978 Lincoln Versailles in Diamond Blue Metallic with Wedgewood Blue vinyl roof / Mecum Auctions

Many of these points are arguable, and history demonstrates that a model may fall down in some of these areas and still succeed because of its other virtues. However, any one of these factors can be enough to make a basically good product fail or cause an especially cynical one to become an outright laughingstock.

Left side view of a dark red 1992 Lexus ES300
1992 Lexus ES300 in Garnet Pearl / Bring a Trailer

You can decide for yourself how you think the Lincoln Versailles scored, but the sheer longevity of the Lexus ES line makes clear that it eventually succeeded on points, even if the ES250 was a bit of a damp squib.

Left front alloy wheel and front bumper of a white 1990 Lexus ES250
1990 Lexus ES250 in Diamond White Pearl / Bring a Trailer

Perhaps perversely, I have a soft spot for the original ES250. The XV10 ES300 was a better car in many respects, but I like the ES250’s late ’80s JDM hardtop look and smaller dimensions. If it had come to putting my money down, I would probably have opted for an Acura Legend coupe instead, but an ES250 wouldn’t make a bad daily driver even today.

Related Reading

1977–1980 Lincoln Versailles: Slow-Selling, Cynical, But Very Profitable (by me)

Curbside Classic: 1989-91 Lexus ES250 – Lexus’ Learning Curve (by William Stopford)

Cars Of A Lifetime: 1991 Lexus ES250 – Luxury For The Proletariat (by Junkharvester)

Curbside Classic: 1994 Lexus ES 300 – A Drinkable Prosecco Among Pricier Champagnes (by Brendan Saur)

Cursed Curbsides: The Lexus ES – Lexus’ Greatest Hit Or Greatest Regret? (by William Stopford)