Lexus shows it means business

When Takeshi Yoshida laid out plans to redesign Toyota's luxury Lexus brand to 400 car dealers in Paris this month, expectations…

When Takeshi Yoshida laid out plans to redesign Toyota's luxury Lexus brand to 400 car dealers in Paris this month, expectations were low

As the softly-spoken head of the Japanese car-maker's new Lexus development centre spoke, European Lexus dealers thought they were about to see yet another dull "me-too" vehicle designed with Americans in mind.

But when the clay model of the new IS saloon came into view, the polite clapping turned into a standing ovation. "We were all gobsmacked," says one dealer. "It's a super, super looking car."

The designers had succeeded in giving the brand a more exciting and sporty look which could break into the global premium market, especially Europe.

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"A global presence gives you credibility that you don't get just by being successful in one market,", says Yoshida.

The next generation IS200 is due here in March 2006 and was initially previewed by the LF concept. Engines are expected to be larger than the current range, starting perhaps with a 2.5-litre.

A diesel is also expected to be added. The IS220d will be powered by Toyota's new 2.2 four-cylinder turbodiesel in 150bhp and 180bhp form.

Meanwhile dealers are keenly awaiting the arrival of the hybrid version of the premium Japanese marque's SUV, the RX400h. Delayed by over six months it will finally hit our roads this spring.

Although we have already driven it, an embargo prevents us from telling you how good it is. However, those keen to get an early flavour of the hybrid RX should avoid early test drives in the Toyota Prius, particularly if they want to get an idea of the sort of performance to expect.

Hybrid first-timers in the market for the premium green version should sit tight and wait for it. If they really need to get a flavour of the car's drive and handling, take a spin in the current petrol range.

The RX is not the end of Lexus hybrid plans. There are suggestions that the marque is already working on further hybrid models, most likely a petrol-electric hybrid version of the GS.

In the shorter term, Lexus will reveal what it refers to as an "exotic sports car concept", the LF-A, at the North American Motor Show in Detroit next month. While it's far too early to say whether it reflects anything that will make it onto our roads, it may just signal the design direction for a future replacement of the current SC.

All this activity confirms the aggressive approach being taken by Lexus in trying to position the brand globally.

In Europe, where annual sales have never broken the 25,000 mark, spending on marketing is to increase fivefold to €150m-€170m a year - the equivalent of €7,850 for each of the 21,651 cars it sold last year. It hopes to reach sales of between 65,000 and 100,000 cars in the continent by the end of the decade.

When the first Lexus car went on sale in September 1989, competitors didn't really take them seriously. They had witnessed a previous Japanese attempt to take a slice of the premium end of the US market with Honda's three-year-old Acura luxury brand. It failed to make an impact and most expected the same of Lexus.

Ten years on Lexus passed Cadillac to take the top spot in the US premium market. Now it hopes to repeat the success globally. This time, competitors are less likely to write off its chances of success.

Yet, some of the German marques dismiss the challenge of Lexus on the European market. The busy schedule of the next five years will tell whether Lexus can repeat its US success.