TORRANCE, CA – Toyota may build a compact Lexus SUV that would compete with the BMW X3, Acura RDX, and Infiniti EX35 crossovers — and the coming Mercedes-Benz GLK and Audi Q5 crossovers — according to www.autoweek.com.

According to Jim Lentz, Toyota Motor Sales U.S.A. president, a small Lexus SUV could be a response to the “urbanization” of Gen Y buyers and empty-nest boomers.

Toyota’s advanced product strategy group is studying a demographic trend — people who are tired of the suburbs but don’t want to give up the utility of their SUV. Lentz said that going smaller than the RX 350 crossover would require an all-wheel-drive version of the RAV4 platform.

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