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 |  Aug 15 2011, 5:00 PM

Lexus is set to launch its next-gen GS at the Pebble Beach Concours d’Elegance on August 18, and the vehicle will feature a much smaller engine. Reports from Thailand say that the new model will have an available smaller 2.5-liter V6 engine, along with bigger six cylinder engines. The smaller engine will mean the Japanese automaker can better compete with the BMW 5-Series and Mercedes-Benz’s E-Class.

For the last twenty years, the GS’s smallest engine was the 3.0-liter, but for efficiency reasons, it’s time for change. The engine choice allows Lexus to evade Thailand’s maximum excise tax of fifty percent for cars with more than 220-hp (GS300 has 229). The smaller Lexus IS already uses a 2.5-liter V6 so implementing the engine into the bigger GS will not be an issue. It has not been confirmed as to whether GS250 will be available in North America so we’ll have to keep our fingers crossed. With gas prices the way they are, the GS250 would be an attractive option if looking for a fuel efficient luxury car.

[Source: Paul Tan]