lexuslogo.jpgLexus will be developing a compact car to compete with the Audi A3 and the BMW 1-Series, but it won’t hit the US markets where Lexus was born, instead the new vehicle will compete in the European market and help Lexus with its CO2 emissions targets.

Knowing Toyota, a compact Lexus could very well be based on some form of variation of the Toyota Auris. Lexus may even spice up the Toyota Blade for the European market, a model that is essentially a premium Japanese market Toyota Auris.

This won’t be the first time a “regular” car has crossed over to the premium marque – Acura sells the regular Asian Honda Civic in Canada as the Acura CSX (the North American Civic gets different styling).