Lexus to tackle 1 Series with new small car

LEXUS has shelved plans to produce a small luxury SUV and will instead build a small passenger car, codenamed C-Premium, to rival BMW’s successful 1 Series range.

To be manufactured in sedan and/or hatch guises beyond 2010, the new entry-level model plan was signed off by Toyota’s luxury car brand just prior to the Tokyo motor show, a Lexus insider told GoAuto.

The small SUV it will supplant was to have been closely related to Toyota’s RAV4 soft-roader but has been put on hold in favour of a sub-IS passenger model in response to strong European sales of both Audi’s A3 line-up and the 1 Series range, which will grow to include hatch, coupe, convertible and sedan bodystyles.

The shifting European small-car market means a RAV4-related mini-SUV may now never appear from Lexus.

“The booming small passenger market in Europe has required us to rethink the situation in terms of the sub-RX entry-level SUV we had planned,” said a Lexus executive. “In response, we have decided to shift from SUV to passenger car, under the project name of C-Premium.” Though he would not specify what type, group manager for Lexus brand planning Shuhei Miyashita confirmed the widely speculated “new entry-level” (NEL) model, among others, was under development at Lexus.

“Yes, of course, smaller cars are a high priority,” he told GoAuto exclusively. “Yes, a new entry-level model is a strong possibility. We are always considering smaller, as well as larger, cars.” Toyota’s executive vice-president for quality and R&D Masatami Takimoto said a smaller Lexus was required to meet tightening exhaust emission standards around the world, as well as to share in the European small-car sales surge. But he cautioned no production date had been locked in.

“When you look at our German rivals, and considering CO2, I believe it is a strong necessity for us to build a smaller model. We have to improve our CO2 performance not only in Europe but in Japan and the US as well.

“(But) it is not decided. It’s not necessary for us to compete on all levels with the Germans. We have no target date.” Meantime, taking pride of place on the Lexus stand at Tokyo was the striking LF-Xh SUV concept, design cues from which will find their way onto the next-generation RX crossover due to appear in final concept guise at the 2008 LA motor show 12 months from now in November.

Those who have seen it in clay say the new RX will be lower, sportier and smaller looking than before (despite being bigger inside), but Miyashita-san confirmed it will not be as adventurous as the larger LF-Xh.

“This is the design direction of Lexus SUV,” he said. “This is not going to be the replacement. It is not a direct link to the new model, but its design will be reflected.”

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