#hs250h

Toyota is recalling 337,000 vehicles to address an issue with their suspension.

Lexus was one of the first premier automakers to introduce a series of hybrids in its line-up. In 2009, Lexus launched its first dedicated hybrid model, the HS 250h.

Despite a strong presence on this side of the Atlantic, Lexus has yet to penetrate the European market. But they folks at Toyota’s luxury arm are hoping that a premium level hatchback in the compact segment – that also just so happens to be a hybrid – will help them win over a new (younger) generation of customers.

Demand for the new 2010 Lexus HS250h hybrid sedan is so high in Japan that the automaker fears it might not be able to keep up with expected sales volumes in the U.S.

With the entry-level premium marketing continuing to grow in Europe, Lexus is planning to get in on the action by bringing a vehicle to market that will complete with the Audi A3 and BMW 1 Series.

Lexus unveiled to the press a dedicated hybrid vehicle the HS250h – an entry level luxury hybrid that the company says will get better city fuel milage than the Smart micro-car.

Even more impressive is that it will operate on regular 87 octane gas. Lexus VP Mark Templin couldn’t help but use the opportunity to stick it to the Germans by pointing out how much cheaper 87 octane is than diesel.

The HS250h uses a hybrid powertain with a 2.4 liter engine that produces 187hp.

Lexus has built the HS250h in response to customer demand. According to its research 60 percent of entry level luxury buys would have considered a hybrid if one had been available.

One particularly neat feature is that the on-board LCD screen can show a 180 degree picture of what is ahead of the car – perfect for navigating in tight urban areas.This device has been adapted from the Lexus flagship SUV, the LX570.

The HS250h will come with the new Enform system, wich operates much like GM’s OnStar and even features a stolen vehicle locator.

The HS250h will go on sale this summer.

Lexus also announced that the HS250h is the first of 10 new hybrids Toyota will unveil in the next few years.

Official release after the jump: