One Hot Hybrid
Lexus's new SUV has customers lining up--and it's not even for sale yet.
By Alex Taylor III

(FORTUNE Small Business) – What's the definition of a hot car? One sign is when the manufacturer delays the on-sale date so that it can get more cars into dealerships and avoid disappointing too many customers. That's what is happening with the Lexus RX 400h, the hybrid version of the popular RX 330. Lexus pushed back its debut from last fall until mid-April because 11,000 prospective buyers have placed orders--about five months' worth of projected sales.

Spurring demand is the opportunity to feel good while doing good. The 400h has two power sources--one gas, one electric--which produce quicker starts and better mileage while generating less exhaust emissions than a gasoline engine on its own. The juice comes from three electric-motor generators--one to start the car and two to drive it--all powered by a pack of rechargeable nickel metal hydride batteries under the rear seat. The electric motors get the car going from a dead stop and give it loads of oomph during acceleration. Lexus says the 400h goes from zero to 60 in 7.3 seconds--about half a second faster than the gas-only 330.

The 400h operates like any other vehicle, with one big exception: When you start the engine, you don't get the familiar sounds of the starter engaging and the motor turning over, and you don't see a tach needle bouncing. Instead you watch for the "Ready" lamp that signals that the electric motor is ready to go. Tap the accelerator, and the gas engine kicks in. Once on the road, the 400h feels more like a sport sedan than an SUV. Lexus's all-wheel drive and new stability-control system keep it planted to the pavement. And because it's a hybrid, the fuel economy is almost gaudy. I put more than 300 miles on an RX 400h with heavy highway driving and got 27 miles a gallon. Try that in your standard SUV.

From the outside the 400h is a dead ringer for its sister car, the bestselling luxury sport utility on the market. I haven't been a fan of the 330's design because I don't like the egg-shaped rear end. But the vehicle delivers what lots of buyers want: all-wheel drive, high seating, a comfortable interior, and storage space behind the back seat.

Toyota (the corporate parent of Lexus) hasn't announced prices, but all this technology is likely to cost $4,000 to $5,000 more than a comparably equipped RX 330, which starts at $46,635 for the all-wheel-drive version. Unlike the Toyota Prius, which has a sticker price below what it costs to manufacture, the 400h will generate profit right out of the gate, according to Lexus. With the two models, the company is hoping to take a commanding lead in the race to become the industry's hybrid leader.

What you will get is the satisfaction of owning a highly functional vehicle and the good feeling of making a tiny contribution to the health of the environment.