News of Lexus possibly offering a compact hatch around 2008 called the BS isn't total bull. Inside Line is reporting the small car is being developed to compete with the BMW 1-Series, Mercedes A-Class and Audi A3 Sportback in Europe. Like those models, Lexus probably won't offer the BS in the U.S. It will be most likely be based on the Lexus IS250 platform and be offered with a 208-hp, 2.5L V6, as well as a 177-hp diesel. A high performance version with a 250-hp, 3.0L V6 and a hybrid version will also be likely.

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