TOKYO — Toyota has canceled the next-generation Lexus SC coupe/convertible and may shelve the planned replacement for the Toyota Avalon sedan, Inside Line has learned.

The SC has consistently been a slow seller for the Lexus brand, which is getting a new performance flagship, the LF-A supercar, in 2009. In the first six months, Lexus sold only 1,230 SC 430s, down more than 40 percent from a year ago.

The 2008 SC 430 is priced at $67,120. It is fitted with a 288-horsepower 4.3-liter V8 that is rated by the EPA at 16 mpg in city driving and 23 on the highway.

Toyota had been developing a successor to the SC, based on the same rear-wheel-drive platform as the LF-A. Originally slated for production in early 2009, the next-generation SC was pushed back to mid-2011 and now has been canceled, according to Toyota insiders.

With development of the next-generation 2012 Camry well underway, Toyota also is studying whether to cancel the planned replacement for the Camry-based Avalon, which currently is slated to go into production in Kentucky in early 2010.

In its place, Toyota may opt to produce a long-wheelbase Camry for such markets as North America and the Middle East. The redesigned Camry currently is slated to begin production in mid-2011.

What this means to you: High fuel prices continue to take their toll on larger, thirstier cars, even those from well-respected Japanese brands. — Paul Lienert, Correspondent