Autoblog

We've known for quite some time that Toyota would be introducing the world to its third-generation Prius hybrid sedan at next year's Detroit Auto Show. Expected to be powered by a revised and enlarged 1.8-liter engine and electric motors, the new model aims to continue Toyota's hybrid dominance, at least for the next few model years. We also expect Lexus to get its own more luxurious version of the Prius, and Inside Line is reporting that it will come in calender year 2010 and could be the first Toyota-made hybrid with lithium ion batteries. What's more, Lexus is said to be considering a second hybrid-only model to be based on Toyota's midsize sedan architecture, as is the current RX, which is available in both standard and hybrid guises. Rumor is that the second dedicated hybrid model might be a crossover utility vehicle, the current darling of the it's-not-a-station-wagon set. We'll surely hear more about this new model before its expected introduction in 2011.

[Source: Inside Line]

According to Automotive News, Toyota might be looking to develop a compact SUV to compete with the Acura RDX, BMW X3, the recently introduced Infiniti EX35 and the soon-to-be unveiled Audi Q5. The market for luxury cute 'utes is growing as people either downsize their larger SUVs and, in some cases, abandon the suburbs for more urban environs where a traditional SUV is too big to cope.

However, two problems face Lexus. First, the possibility of overlap with some of Toyota's offerings could cannibalize sales on both fronts (Lexus would likely utilize the AWD RAV4's platform), and the current RX350 isn't what we'd call a porker. Secondly, in order to hit the $30,000 price point, some of the luxury amenities buyers expect couldn't be offered. While a vehicle in the $30,000+ realm lines up nicely with some of the offerings from Acura (around $33k for the RDX) and Infiniti ($35k for the EX35), the BMW X3 is still around $38,000 and the Audi Q5 should be priced about the same.

[Source: Automotive News – Sub. Req.]