Toyota has confirmed reports that it is to spend some £400m over the next three years to raise the European performance of it Lexus luxury brand.

A byword for customer satisfaction in North America, Lexus has earned a similar reputation in the UK, but its Europe-wide sales in the first nine months of this year totalled only 19,634.

By 2010, Lexus aims to increase European volume to between 65,000 and 100,000. Next year, Lexus is to launch a hybrid version of the RX SUV, and it will market a diesel-powered IS 200 saloon in 2006.

The number of Lexus dealerships across the continent is expected to double, to over 400.

  • Porsche, which has no diesel engine in its line-up, has reportedly expressed interest in licensing the hybrid powertrain technology Toyota uses in the Prius and forthcoming Lexus RX hybrid.