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A NEW Prescription; Second-generation Lexus RX ups the luxury ante.(News)

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| January 20, 2003 | COPYRIGHT 2003 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Byline: ROGER HART

Barely five years ago, luxury sport/utility vehicles hardly constituted a market segment. With fewer than 100,000 vehicles sold annually, ``niche'' seemed the more appropriate word. That was before Lexus created the car-based luxury sport/ute game with its RX 300. Since the RX launch in '98, sales have grown nearly every year, helping push the luxury SUV segment to 322,000 last year, with expectations to top 500,000 by 2004.

Lexus sold more RXs (70,000) in 2002 than Jaguar sold Jaguars. All Jaguars.

While several manufacturers have come out with their own car-based RX-fighters (Acura MDX, Buick Rendezvous, Volvo XC90, to name a few), Lexus commands a whopping 22 percent share of the U.S. market.

So, as the saying goes, if it ain't broke, why fix it?

``Good question,'' says Lexus group vp and general manager Denny Clements. ``But the new RX 330 is just so good, it wouldn't be fair to keep it from our customers.''

He's supposed to say that. Lexus also needs to defend its turf against the onslaught of newcomers like the upcoming Cadillac SRX, Nissan Murano and Infiniti FX45. After a day of driving the RX 330 around Southern California, we'd say Lexus isn't surrendering anything to the late arrivals.

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