Will Lexus build a compact SUV?

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Lexus is seriously considering launching a compact SUV set to compete with the BMW X3, Infiniti EX35 and the announced Mercedes GLK.

Despite being the first car maker to build a luxury SUV with the Lexus RX 300, the Japanese car maker never really believed there was a strong demand for compact luxury SUV. However the success encountered by the BMW X3 model on the American market obliged Lexus to reconsider its position.

In an interview with Automotive News, Jim Lentz, Toyota Motor Sales U.S.A. president, said that a compact SUV could appeal to customers “sick of the suburbs, but who don’t want to give up the utility of their SUV. A small luxury SUV might be the right product for that environment.”

In Japan, Toyota is selling an upmarket RAV4, called Vanguard, under the Toyota label. Powered by a 3.5-litre V6 petrol engine, the Vanguard is longer and wider than the RAV4 despite sharing its underpinnings.

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