Lexus Compact Concept Set for Frankfurt

Toyota Motor Corp.’s Lexus brand will unveil a “premium compact” concept car at next month’s Frankfurt motor show.

“The concept will demonstrate a compelling mix of technical innovation and groundbreaking design that promises to raise the bar in the premium-compact segment,” Lexus Europe says in a release.

The concept reportedly hints at a production model that will go on sale in Europe and Australia by 2011.

Toyota and Lexus executives in the U.S. in recent years frequently have spoken of growth in new-vehicle sales coming from small cars due to a trend in urban living. Also, Toyota research shows younger buyers do not associate small with cheap.

“We see this group of young people growing up saying, ‘I don’t buy cars by the pound anymore,’” Lexus U.S. General Manager Mark Templin told Ward’s in May.

“Older people say, ‘The bigger the car, the more it is worth.’ (But) small can be premium, as well. I think that’s an emerging segment, and we’re watching it closely.”

Lexus rivals BMW AG and Audi AG already sell compact cars in the U.S. BMW offers its 1-Series model and Audi retails the A3.