Lexus CT concept teaser sketch – Click above for high-res image

With high fuel prices and decreased cash flow, many buyers are looking for smaller cars that don't compromise on luxury or prestige – or so the theory goes. It's a lesson that the European automakers have learned, and learned well with offerings like the BMW 1 Series, Audi A3, and Volvo C30. Now, Lexus has confirmed it is entering the fray with a contender of its own, releasing this sketch to give us a little preview.

Expected to debut in concept form at the upcoming Frankfurt Motor Show – right where its desired competitors are birthed – the Lexus hatchback is anticipated to carry the CT nameplate and offer up a variety of hybrid drivetrains in a package that could set the tone for future Lexus models from the ground up. While a version of the hatchback is widely expected to reach showrooms, we have to wonder if the relatively disappointing sales for cars in this segment (essentially everyone but Mini) will keep the production CT out of American dealers. Stay tuned for more info as the show approaches next month.

[Source: Lexus]