The proposed new Lexus would challenge the likes of the BMW 1-Series and the new Mercedes A- and B-Class, as well as the coming Audi A3 and A1. It could be dubbed the CS, and sources say the new vehicle may be pitched only as a hybrid car, with no gas-only version in the cards.
Though it wouldn't share the platform of the Lexus HS 250h sold here, the new vehicle would share the 2.4-liter hybrid four-cylinder powertrain found in the HS 250h.
It's unlikely to go on sale in the U.S., but a European launch for the new vehicle is said to be in the works for the fall of 2010. A diesel version is unlikely, though the new car could share a platform with the Lexus IS range, which does offer a diesel in Europe.