Lexus Might Move To Hybrid Only Business Model

Lexus may move to a hybrid-only production model, according to Toyota managing officer Toshio Furutani. Currently, Lexus has three hybrid models and plans to introduce another hybrid-only model built on the Prius platform next year. According to Toyota, the new Lexus will make its debut at the North American International Auto Show in Detroit in January, but the vehicle is slated for release into the European market first.

The company is expected to release new hybrid versions as each model line is updated. Toyota is reportedly considering a convertible or hatchback model to compete with the new BMW Series 3 and the Audi A3. It would not confirm speculation that a plug-in hybrid Lexus is in the works.

Converting luxury lines to hybrids may enable the automaker to bury higher production costs more easily. Toyota has already said that it will bring the new plug-in Prius to market perhaps as early as late 2009 to beat the Chevy Volt to the market, but according to Toyota's engineers, the plug-in Prius will have an all-electric range of only about 10 miles. By comparison, GM says the Volt will have an all-electric range of 40 miles.