Future Lexus Hybrids May Favor Fuel Economy Over Performance
By Christie Schweinsberg
Ward's AutoWorld, Apr 1, 2007 12:00 PM

Up to now, Toyota Motor Corp.'s Lexus luxury division's hybrid-electric vehicles have emphasized performance over fuel economy.

For example, the Lexus LS 600h, the marque's third and newest HEV going on sale in the U.S. in June, is equipped with a 5L V-8 engine mated to a large-capacity battery that, together, produce more than 430 hp.

Lexus has yet to announce the exact horsepower, but emphasizes it will be on par with V-12 engines offered by non-hybrid German competitors Audi, BMW and Mercedes brands.

The Lexus GS 450h midsize sedan and RX 400h hold their own, as well, churning out 340 hp and 268 hp, respectively.

But Bob Carter, Lexus group vice president and general manager, says the brand's strategy of pushing hybrid power over fuel economy may be changing.

“The next thing we're looking at and talking to our customers about is, while there is certainly a role for a power hybrid in Lexus, there could also potentially be a market for mpg-based hybrids,” Carter tells Ward's at a media preview for the LS 600h.

He cites a story relayed to him about a GS 450h owner who said the car's 340 hp is not necessary for her daily driving style and that fuel economy is more important. “That's not the norm, but certainly we know there are people (like that) out there,” he says.

Carter insists pushing Lexus hybrid power vs. Toyota-brand hybrid fuel economy has paid off, pointing to the Lexus RX 400h, which makes up 20% of all RX cross/utility vehicle sales in the U.S.

Nevertheless, “You may not see the clarity of mpg vs. power between the divisions like we once told you,” he says.

Toyota has hinted it is headed in the direction of more spirited hybrids with its concept FT-HS, a 400-hp HEV sports car that achieves 0-60 mph (97 km/h) in 4 seconds, shown at the Detroit auto show in January.

The concept is in sharp contrast to the 143-hp Toyota Prius HEV, which gets a combined 46 mpg (5.1 L/100 km) city/highway.

But so-called “performance hybrids” have been a hard sell to American consumers. The GS 450h and RX 400h sell in modest amounts, with February deliveries at 160 and 1,249 units, respectively, Ward's data shows.

Honda Motor Co. Ltd. heavily touted the performance attributes of its V-6 Accord Hybrid, but sales never materialized and there now is speculation the vehicle will be axed when the new '08 Accord lineup debuts this fall.

John Mendel, senior vice president-automobile operations, American Honda Motor Co. Inc., told Ward's last year that consumers equate hybrids with increased fuel economy in explaining why the Accord Hybrid has failed to catch on.

“People say (about the Accord), ‘It's better than V-6 fuel economy, but if I want a hybrid I want 50 mpg (4.7 L/100 km),’” Mendel said last July.

Meanwhile, although there has not been a new hybrid announcement from Lexus in nearly a year, Carter assures there are more HEVs to come.

He echoes other Toyota executives in alluding to the possibility of future hybrids that would combine diesel-electric or hydrogen fuel cells and electric power.

“What hybrid technology really offers is the ability to take two power sources and mesh them together,” Carter says. “It really gives us a lot of flexibility in the future.”