GS 250 to join Lexus line-up?

Lexus looks likely to take on four-cylinder executive class models from BMW, Mercedes-Benz and Audi after all... But there's no turbo four in the wings – instead the Japanese luxury marque will debut a lower capacity V6-engined version of its latest GS range.

Set to debut in the early part of 2012, the new Lexus GS range is aimed four-square at the European marques' executive class sedans – E-Class, 5 Series and A6. However, with only 3.5-litre V6 (pictured) and Hybrid versions initially scheduled for local release, it looked likely Lexus would not have the model spread to compete with the Euros at their entry-level.

Now Lexus Australia is seeking to secure right-hand drive production of a 2.5-litre V6 engined variant.

Dubbed the Lexus GS 250, the vehicle was initially aimed at Chinese and Eastern European markets.

It will be official launched at an upcoming Chinese regional motorshow on November 21.

Lexus says the car is powered by a "new direct-injected" version of the 2.5-litre V6 used in the IS 250. Mated to a six-speed auto, the 153kW/252Nm V6 accelerates the GS 250 0-100km/h in 8.9sec and returns economy of 8.9L/100km in Euro combined testing.

If Lexus is to secure a bigger chunk of the executive class market the GS 250 could be key. Sales of 5 Series and E-Class are dominated Down Under by four-cylinder turbo petrol and turbodiesel variants. Almost 65 per cent of Mercedes' sales in this segment are fours. BMW's percentage is growing strongly and is over 50 per cent and recently Audi launched new 2.0 TFSI and TDI versions of the A6.

As recently as two weeks ago, however, Lexus Australia said it would not seek to compete with entry-level Europeans.

Lexus Australia marketing chief Peter Evans hinted that Lexus entry-level 3.5-litre V6 would be priced competitively, but told motoring.com.au: "I don't think we're going to chase a 2.0-litre Audi [pricetag] down to $77,000. But you've got to be around that price [$80K] to be competitive. That's certainly our objective -- we'll see how we get on..."

In the USA for the global launch drive of the GS range, Evans admitted Lexus Australia knew GS 250 was coming but said it had yet to secure the car for local consumption.

Evans says Lexus sees the entry-level Europeans as distinct targets, standing by his 350-focussed comments.

"They are two different models [segments] as far as we're concerned. Four-cylinder turbo [petrol] is a competitor for [GS] 350. The [GS] 250, if it were brought to market, would compete with the turbodiesels."

"Given the premiums the Germans charge, I would still be expecting to be able to compete with one of our [GS] 350 models against their turbocharged four-cylinder petrol models," Evans said.

According to Evans, Lexus Australia is yet to make a firm decision. He says, however, the company is "actively considering" the smaller V6 model.

"We're still studying it. My personal view is it has potential [in Australia] but there's a whole bunch of issues [to work through] re availability, specification and in terms of pricing."

Evans did not put a firm tuimeline on the 250 decision but says Lexus Australia must confirm the local model line-up, standard specifications and pricing for the new GS 350 and 450h hybrid by the end of November. He's not saying when those details will be announced, however...

Look out for our drive impressions of the new GS 350 and 450h including F-Sport models on November 24.

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