Lexus to drop HS due to slow sales?

Lexus could be ready to cut the HS hybrid from its lineup.

Toyota's Lexus luxury division will reportedly kill off its slow-selling HS 250h. The HS has failed to meet expectations since launching in 2009.

Although no timeframe was attached to the HS' demise, it could come sooner rather than later. Lexus sold just 205 examples of the HS last month, bringing its yearly tally to 2,383 units. That represents a 72.8 percent decrease from the same period a year earlier.

Lexus will replace the HS with a new vehicle, but expect a significant change in direction for that car. Whereas Lexus originally aimed the HS at owners moving up-scale from the Toyota Prius, the HS' successor will be geared towards a younger crowd - much like the company's recent CT hybrid. That scheme has so far proved successful for the CT as it now ranks as Lexus' third best-selling nameplate.

The new model could also follow the CT's pricing model. At $37,030 the HS 250h is far from cheap, commanding about the same price as an Infiniti G37 and nearly four-grand more than Lexus' own IS. Look for the next-gen car to hover around the $30,000 mark.

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