Lexus of Europe needs this. They want to go from selling 25k a year in Europe to 100k plus.. Europe will get hybrids only and dedicated products.Compacts are huge sellers in Europe and the best selling Lexus in Europe are the IS 220d and hybrids. They have to stop approaching Europe like they approach America.

Also the next generation IS is confirmed to come with a hybrid.

Toyota have already announced that they're working on a C-segment hybrid: the Auris. My feeling is that this baby Lexus will be based on the new Auris/Corolla platform.

(Audi's A3 is basically a VW Golf/Rabbit with a different shell.)

Generally engine sizes and power outputs are smaller in Europe than in the US. Don't be surprised to see the Prius drivetrain in this Lexus - 134 hp combined is plenty.

One thing they would have to do is put independent rear suspension on it - torsion beam suspension is archaic when the sales leaders (Ford Focus, VW Golf) are using fully-independent set-ups.

According to this article, Toyota have registered CT 200h as a trademark in the US and Canada, and CT 300h and 400h in the US.

Given the Obama Administration fuel economy/emissions mandates, this car has a very good chance to be sold in the USA, if only to offset the sales of the LS luxury sedan and LX luxury SUV.

Yeah every generation, most cars get bigger. To squeeze these new entry level cars in the IS/3/C will have to grow in size like the new A4 has, from 180 inches to 185 inches. HS is 184 or so inches long.

Yes and it will be built in the U.K to help sell it here and keep the price down based on exchange rates.

Yes, BMW/Benz just announced 4 cylinders are coming back and expect 3 cylinders as well.

Lexus is selling the HS250h in Japan too.

Ken@Japan

Future Lexus hybrid compact will be called CT 200h - Top Speed

C = compact and T = tourer.

Wow..... it looked.... really Lexus come to think of it.

I kept wondering if it might look Prius-ish but that's a definite no, at least not on the outside.

Lexus will unveil the new CT 200h at the 2010 Geneva Motor Show.
LEXUS - LEXUS TO REVEAL CT 200h AT THE 2010 GENEVA MOTOR SHOW - NEWS AND EVENTS

"Six months after the LF-Ch concept was revealed at the Frankfurt Motor Show, Lexus will unveil the new CT 200h at the 2010 Geneva Motor Show.

Created for those who wish to lower their emissions but not their standards, the CT 200h will be the first, and only, full hybrid vehicle in the premium compact segment. It will bring new levels of refinement, sophistication and attention to detail to the segment, without any compromise on style or driving pleasure."

Ken@Japan

Auto Express staff also believes it's hatchback.
Luxury Lexus baby hatches out | Auto Express News | News | Auto Express

"Insiders have revealed that the Frankfurt concept car will be virtually identical to the showroom-ready version, which is due to debut at the Geneva Motor Show in March 2010."

Ken@Japan

.
FROM THE LEXUS WEBSITE:
"Lexus will unveil the world’s first Full Hybrid luxury compact at The Geneva Motor Show on March 2nd 2010. Evolved from the LF-Ch concept car, the CT 200h heralds a new dawn for Lexus as it is younger, bolder and more dynamic than any Lexus car before."

http://www.lexus.co.uk/about/concept-cars/view-cars/ct-200h/index.aspx

.
Toyota and Lexus are slowly converting production to hybrids. The HS is hybrid only, and now this Lexus will be hybrid-only. The Prius is hybrid-only. (that's THREE models!)
The next IS will be available in hybrid form (if rumors are true). The Camry is offered in a hybrid.
(RX, LS, Highlander also).

While many automakers are being slow to introduce hybrids, Toyota/Lexus is pushing forward to the future. (like Apple with the iPhone vs it's competition)

Toyota/Lexus "gets it." They see the future and they are leading the world into it.

Pictures here! >>> Brochure for the CT 200h leaked! <<<