[AutoGuide.com]

Looking to compete against BMW's 520d and Audi's A6 2.0 TDI, Lexus is flexing its hybrid muscles and developing a smaller hybrid engine for its new-generation GS. Given its success in building and selling hybrid engines and models, it's no surprise that Lexus is looking to add a smaller h-variant for the European market, which will also be getting the GS450h and GS250 upon release.

The North American market will receive a GS350 and GS Hybrid, along with the high-performance GS F Sport, so it's unknown whether or not we'll see the smaller hybrid engine. Chances are though, Europe will get a smaller, more affordable four-cylinder powerplant with around 180-hp. Lexus is looking to be competitive with BMW's 520d, aiming to get around 50-mpg.

Lexus confirms that a decision is around the corner regarding the smaller hybrid engine and that an announcement should be made prior to GS' launch in the UK next summer.

More: Lexus GS to Get Smaller Hybrid Variant for Europe on Autoguide.com