For the 2010 Lexus 450h, Price Counts

(MoneyWatch)  Toyota's Lexus division is launching an all-new 2010 version of its luxury SUV, the V-6-powered RX350, in the teeth of a deep recession. But the suddenly vulnerable company says it is confident it can sell more than the 65,000 that moved out of showrooms last year. It's a new model, they said hopefully. The $36,800 car goes on sale this week.

But Lexus also sold 15,000 400h hybrid versions of the RX last year, and that model is coming back in a few months as the much-revamped 2010 450h. According to Lexus Training Manager Paul Santulli, the company expects to increase its hybrid percentage with the new model. Whether that prediction comes true or not depends to a considerable extent on what it will cost.

Lexus hasn't announced a price for the 450h, and Toyota spokesman Wade Hoyt says the final number is often a negotiation between Toyota's Japanese number crunchers--who obviously don't want to build vehicles at a loss--and their American counterparts, who want to maximize sales numbers.

The 450 has hugely better fuel economy, and better emissions, than the RX350. It is classified by California as a Super Ultra-Low Emission Vehicle (SULEV), thanks in part to an innovative exhaust heat recovery system that quickly warms up the catalytic converter (a source of major emissions when cold). Fuel economy is helped by a gas-saving Atkinson Cycle engine, energy-efficient LED brake lights, and a much-improved power control inverter.

The 450h gets 30 mpg in the city, 27 on the highway. The very similar-looking-and-performing 350 achieves a mere 18 mpg in the city, and only 24 on the highway. But if the price premium on the hybrid is too high, consumers will do the math and realize they'll never own the car long enough to realize serious fuel savings.

The 2009 400h adds more than $5,000 to the bottom line over the RX350 (though there are equipment levels to consider--the 400 and 450h come loaded). The 2010 hybrid is larded with new whiz-bang features, including Teflon-coated oil seals (to reduce friction), a new nickel-metal-hydride battery pack and electric power steering. But the price still has to be realistic.

Jim Motavalli photo