I found this on http://my.is/forums/showthread.php?t=295106

Start Saving for the IS500

So you like your IS350 do you? Well, if you thought that was good, you ain’t seen nothin’ yet! According to the latest industry buzz, it is looking increasingly likely that Lexus WILL produce a BMW M3 competitor next year. Parent company Toyota has seen not only the ‘halo effect’ that top-of-the-line performance cars have created for other luxury manufacturer’s ranges, but also the ‘bottom line’ effect achieved through increased sales. BMW’s ‘M’ models offer much higher margins, as well as accounting for a growing percentage of total model sales. In truth, this is a model variant that Lexus has to offer to be credible versus its German competitors, so the question is not if but when?
Expected to debut at several North American and European auto shows during 2007, the IS500 should be in showrooms by Fall 2007 as a 2008 model year car. It should arrive just in time to spoil the next M3’s launch party and will be the car Lexus uses to tell BMW, Audi and Mercedes-Benz that it is now playing leap-frog instead of catch-up.

Precise details of the new car are still a closely-guarded secret, but since Lexus Europe has been a little more forthcoming to European journalists on this subject than Lexus USA, we’ve got the inside track on what to expect. Firstly, the IS500 will have Lexus’ all-new 5.0 liter V8 direct injection engine (2UR-FSE). This engine was previewed in the forthcoming LS600h, but will be used in the IS500 without the former’s hybrid components. With a lengthened stroke, it is expected to develop in excess of 400 bhp to put it ahead of both the new M3 and Audi’s red hot RS4. We don’t know whether the IS500 will share the AWD drivetrain of the LS600h, but it’s possible. We suspect that Lexus will prefer to appeal to hard-core audiences and deliver a convincing rear-wheel drive layout.

What is beyond doubt is that the IS500 will combine luxury car credentials with focused sports car handling. Numbers like 0-60 mph in 4.7 seconds and a governed top speed of 155 mph do not tell the whole story. A highly tuned chassis with revised suspension components and firmer damping will ensure gum-on-carpet levels of grip and an enviable degree of ride compliance. The steering will be sharper and more direct. Up-rated brakes, which will include a ceramic disc option, will also be fitted. And while an up-dated VDIM will naturally be included to make the IS500’s power usable and controllable, we expect two settings: ‘ROAD will allow full intervention in all situations, while ‘TRACK’ will retard intervention allowing drift addicts to slide the car around corners. It isn’t clear whether you’ll able to switch VDIM off, but given Lexus’ conservative take on safety, we think this unlikely hence the dual settings. In other words, you’ll be able to do just about anything in this car – except to lose control.

Have cries for a manual gearbox fallen on deaf ears? A 6-speed manual transmission makes sense for the IS500, given that it will be a specialist, almost hand-built premium model. However, this isn’t an option that Lexus expects many owners to choose, because a new semi-automatic box should offer even faster changes. Rumor has it that the same advanced Magneti Marelli unit selected for the Lexus GT500 (and used in Ferrari’s top models) will also feature in the IS500. This highly sophisticated paddle-shift box will allow individual gears to be held until the driver chooses to change up or down, allowing you to relish the wail of the engine. We are reliably informed that the engine delivers effortless power calmly and quietly below 3,000 rpm. Thereafter, variable valve timing produces a Jeckyll and Hyde transformation in engine character. All hell breaks loose and the sound should be enough to curdle the blood of the most hard-bitten vampire.

Prototypes observed testing on Europe’s infamous Nurburgring have achieved lap times close to the magic 8 minute mark and below times set by both current RS4 and M3 models. Partly aided by a sleeker aerodynamic shape, the IS500’s faster performance is attributable to a truly sublime engine and ride and handling optimized with the help of Toyota’s F1 team.

The big unanswered question is what body styles the new IS500 will be offered in. Initially, we expect a 4-door sedan, but since other new IS body styles or are on the horizon, it is reasonable to expect a 2-door coupe version too. As far as the exterior styling is concerned, we have been advised to expect only subtle aerodynamic improvements, not radically changed or overtly aggressive body kits. The car will sit on standard 19” alloys.

Another significant tidbit is that the IS500 should retail at a price close to $60,000, which should undercut both the next M3 and Audi RS4 models by a worthwhile margin. If the price alone doesn’t guarantee the IS500’s success, the fact that Lexus is staking its reputation on making this car as close to dynamic perfection as the laws of physics permit shouldn’t damage its chances of doing well either.

Given Lexus’ tight-lipped approach to releasing new product details, this article is based on analysis of the few facts that are known and well-informed speculation, albeit from well-positioned and reliable industry sources. We’re confident, however, that the IS500 is more than just buzz. Expect the full scoop within 6 months.