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ReprintsLexus may add a small SUV for urban buyers
Mark Rechtin
Automotive News
February 4, 2008 - 12:01 am ET
Toyota may build a compact Lexus SUV — even though company executives repeatedly have denied interest in the niche. The little Lexus would compete with the BMW X3, Acura RDX and Infiniti EX35 crossovers — and the coming Mercedes-Benz GLK and Audi Q5 crossovers. Executives worried that such an offering would diminish the Lexus brand and overlap with Toyota-badged vehicles. But the proliferation of vehicles in the compact-luxury segment has led the executives to rethink their stance. Jim Lentz, Toyota Motor Sales U.S.A. president, says a small Lexus SUV could be a response to the "urbanization" of Gen Y buyers and empty-nest boomers. |
Toyota's advanced product strategy group is studying a demographic trend — people who are "sick of the suburbs, but who don't want to give up the utility of their SUV," he said. "A small luxury SUV might be the right product for that environment," Lentz said. But he said a $30,000 compact SUV might not work because of luxury features that would be sacrificed to hit the price. Going smaller than the RX 350 crossover would require an all-wheel-drive version of the RAV4 platform. The RX 350 starts at $38,165. The BMW X3 is about the same price, but the Acura RDX and Infiniti EX35 cost thousands less. |
You can reach Mark Rechtin at mrechtin@crain.com.
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Jim Lentz: The “urbanization” of Gen Y buyers and empty-nest boomers could provide a market for a small Lexus SUV. |
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