How did Toyota do it? It probably wasn’t the name that propelled them to the head of the field, it was more likely the combination of Toyota quality and reliability, a new focus on exceptional customer service and a group of beautifully made luxurious and upscale cars

Lexus’ latest offering, the IS300, is a head-on challenge to the sporty BMW 328i and the brand new “baby Benz,” the Mercedes C320. The IS300, although a full four seater, is the smallest car in the Lexus family. This is the first model targeted to a younger techie generation that understands precise automotive engineering and likes to drive. Lexus usually hits its intended market with a powerful competitor, and with the IS300 it has done so again.

The IS300 is powered by an in-line 6-cylinder, 3 liter, 24-valve, 215 hp engine — borrowed from its big brother, the GS300 — with virtually the same horsepower and size as its Mercedes and BMW competitors. Engine power is transmitted to the rear wheels through an ultra smooth and responsive five-speed automatic transmission. The transmission can be operated manually by up and down buttons on the steering wheel, very handy when climbing or descending steep mountains. Lexus plans to introduce an optional five-speed manual transmission by the end of the first production year. It is no accident that the IS300 has BMW style rear-wheel drive and an in-line 6-cylinder engine. If this is what it takes to play in the Euro-sedan playground, so be it.

At first glance, the IS300 could be mistaken for one of a number of less sophisticated cars of its size. Especially in the ho-hum silver paint that adorns so many autos. But this appearance belies a highly sophisticated luxurious sport sedan: smooth, fast, agile and designed for throwing around on country back roads.

The car is aerodynamic with a “coefficient of drag” of only 0.29. For those of you not familiar with aero CDs and the like, 0.29 is up there among the slipperiest cars in the world.

The car feels solid and tight. It’s eerily quiet on most blacktop surfaces, but allows some tire noise to intrude on concrete freeways. It can reach 60 mph in a hair-flattening 7.1 seconds, and with powerful four wheel disc brakes can stop on a dime.

“Built like a watch” is what you might think when you sit in the driver’s seat and look at the Seiko like instrument panel. Indeed, that is the feeling you get as you drive this car. The panel is backlit with BMW style orange which, for this tester, renders the instruments not as easy to read as with a green or white backlight.

The interior has expensive feeling cloth seats, with a polished metal gear knob and drilled aluminum pedals reminiscent of a rally or race car. You really feel that this car has racing roots with these metallic pieces and the Formula 1 style steering wheel gear shift buttons.

A journey from Lake Elsinore over the mountain to San Juan Capistrano demonstrated what this car can do. Following a BMW 5-series up the twisties was easy — the firm, solid suspension, accurate steering, and gobs of power made for a relaxed drive, while keeping the BMW in sight. Coming down the other side of the mountain the steering wheel transmission buttons were helpful in holding a lower gear to slow the car.

For a suggested retail price of $30,805, a buyer gets front and rear antilock disc brakes, keyless remote entry, power door locks, windows, and front seats, fog lights, high intensity auto headlights, dual heated outside mirrors, inside automatic day/night mirror, six-disc CD dash/radio/cassette stereo unit, dual front and side air bags, cruise control, leather wrapped tilt steering wheel, traction control, power trunk release and aluminum alloy wheels with low profile tires.

Options include leather seat trim and garage door openers for $1,705, a moonroof for $1,000, limited slip axle for $390, heated front seats for $440 and polished alloy wheels for $400.

EPA fuel consumption is 18 mpg city and 23 mpg highway. During the road test with mixed freeway, city and back roads the test car fuel consumption came in at 22 mpg (on premium gas).

The warranty is four years or 50,000 miles, with a very good six year/70,000 mile power train warranty and four-year, 24-hour roadside assistance.

If you need a luxurious and sporty smaller sized car with high quality and excellent reliability, this is one good value. Add to that the excellent Lexus customer service experience and you are unlikely to be disappointed with one of these cars.

Ask for a test drive at one of San Diego’s Lexus dealers, and you will be helped by a professional, low key, no pressure sales associate. You will like the experience, it’s different.

Motoring since 1952, Austin Lynas has owned 54 cars and at one time raced mini-sedans in England. An aerospace engineer, he was instrumental in developing the anti-skid systems used in British military aircraft that preceded today’s ABS systems. Lynas can be reached by e-mail at osten@aol.com.