Lexus Rumored to Debut Compact City Car Next Month

Rumor has it Lexus is going to enter the compact luxury car segment.

Despite reports last year that the Japanese automaker had no intentions to create a model smaller than the CT 200h, Australia website Motoring is reporting that Lexus will actually debut an all-new B-segment compact car that will serve as a direct rival to the Audi A1. If the compact model is approved for production it won’t be released globally until 2018 after Lexus pushes its second-generation CT to market.

SEE ALSO: Lexus Not Planning Compact Models Beyond CT

It is also being reported that Lexus will debut the next-generation RX crossover at the New York Auto Show in April, which was originally rumored to bow at the Detroit Auto Show. We would take the rumor of a compact Lexus with a grain of salt, especially considering Mark Templin, General Manager of Lexus, has gone on the record saying Lexus doesn’t need to build an A- or B-segment car noting that demand for small cars in the U.S. is really weak.

GALLERY: Lexus CT200h

[Source: Motoring]

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