Toyota Motor Sales U.S.A. Inc.’s Lexus division says the new RX 350 will start at $37,400 for a front-wheel-drive model.

The RX 350 with all-wheel-drive is $38,800.

Both prices reflect a $1,300 increase from the current RX 330 pricing.

For the ’07 model year, Toyota has installed its 3.5L V-6 engine in the new RX 350, already powering the new Avalon and Camry sedans.

Horsepower increases 47 to 270 from the previous 3.3L V-6, while torque is up 13 lb.-ft. (18 Nm) to 251 lb.-ft. (340 Nm).

Toyota says the output is equal to some competitors’ V-8 engines, but fuel economy is “among the best in class for non-hybrids.”

The RX 350 FWD model is rated at 20 mpg city/25 mpg highway (11.8 L/100 km and 9.4 L/100 km) and the AWD model gets 19 mpg city/24 mpg highway (12.4 L/100 km and 9.8 L/100 km).

The fulltime AWD system receives a viscous limited-slip center differential to enhance drivability, Toyota says.

Toyota also adds better sound insulation to the ’07 RX 350 via the use of an acoustic glass windshield and increased sound insulation in the door panels, instrument panel and floor mats.

An 8-speaker audio system with in-disc 6-CD changer is now standard and an 11-speaker Mark Levinson Premium Audio System is optional.

A fifth-generation navigation system is optional in the new RX 350. The auto maker says resolution on the central display screen is improved, and drivers now can use voice commands to input a desired destination.

The RX 350 goes on sale Feb. 24 at U.S. Lexus dealerships.