Lexus pondering smaller, cheaper SUV, should they do it?

Toyota is contemplating a compact Lexus SUV that could go head-to-head pricewise against the Acura RDX and Infiniti EX35, according to an Automotive News report. Currently, Lexus lacks a small crossover SUV that competes in a similar pricepoint with premium Japanese competition.

The Lexus RX 350, Lexus’ smallest SUV, currently rivals the BMW X3 with its base price of $38,165. Acura and Infiniti’s offerings come in cheaper by thousands of dollars, but Toyota executives worry that Lexus-standard luxury features and build quality cannot be maintained at a lower price point. Reportedly, another concern for Toyota the dilution of the Lexus brand and overlap with Toyota models — both of which could result in a possible loss of prestige for the luxury automaker.

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