Lexus preparing a Prius-based premium subcompact for Europe

According to Top Gear, Lexus plans to debut a new hatchback at the upcoming Frankfurt Motor Show that will be available exclusively as a hybrid. The new car would be related to the HS 250h, albeit designed specifically for European markets, and would reportedly be a bit shorter than its American platform-mate to fit in premium subcompact segment that's popular across the pond and currently full of 4-cylinder diesels. Andy Pfeiffenberger, Lexus chief in Europe, explains:
"Our hybrid saloons are going up against the V8 diesels in Europe. In the future we need to compete against the four-cylinder diesels. So we will enter new sectors with low-displacement hybrids. The C-premium [i.e. Audi A3] segment is the fastest growing segment and we must be in it."
According to TG, the hatch is likely to go on sale in late 2010 and be priced below the IS diesel.


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[Source: Top Gear]

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