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Part of luxury in the United States has always been big; big homes, big cars, and big diamond rings. And a luxury car has always been big, bold, and unapologetic. Elvis had a Cadillac. Elizabeth Taylor a custom-built 1956 Mark II. Arnold piloted a Hummer.

A common belief today is that younger buyers do not have the same affinity to big and bold. The storyline is that economic instability, and a renewed sense of environmentalism has changed the landscape for future luxury buyers. Armed with this story, luxury  brands are embarking on a downsizing strategy intended to bring in these new buyers to build their brands for the future.  But luxury attempts at compact vehicles have a checkered past: BMW 318ti, Mercedes-Benz C230, or, further back, the inglorious Cadillac Cimarron. Given history, low fuel prices, and buyers gobbling up mid-size cars and crossovers, it is not a slam-dunk for luxury brands to succeed while downsizing.

We recently had the opportunity to experience Lexus’ first compact SUV in Whistler, British Columbia, a town of mostly tourists, with a generous slathering of a mountain-biking Gen Y crowd.  The NX is designed target these younger buyers and compete with the Acura RDX, Audi Q5, BMW X3, and Mercedes GLK in what is one of the hottest markets in automotive.

Outside

Carrying some of the styling first seen with the LF-NX Concept shown at the 2013 Frankfurt Auto Show, the vehicle’s exterior design continues the brand’s desire to be more aggressive. The spindle grille, stretched head and tail lamps and rising beltline are clearly designed to give the vehicle an athletic look as well as distance itself from any wagon cues that haunted the first RX. The large wheel arches and moldings promote the look of off-road capability and reduce a slab-sided look, but give the wheels and tires an inferiority complex, even with the optional 18’s. Overall however, the vehicle clearly distinguished itself from the RX, which will be important.

Inside

The aggressive exterior is carried inside with a cockpit-like driver’s position with an h-point that runs between a car and an SUV.   The NX’s nicely trimmed leather, bridges the sporty/luxury gap quite well. The vehicle has a full array of technology, including a Lexus-first Wireless Charging Tray for phones; the new Lexus Remote Touch Interface (RTI) with a touch pad happily replaces the previous Lexus mouse/joystick. The new input device is like the track pad on a laptop with a soft leather cushion for the heel of your hand.  Available Lane Departure Alert warns the driver when it determines that the vehicle is about to veer from a traffic lane. A camera mounted to the windshield recognizes lane markings. It sounds a warning and provides a visual representation on the Multi-Information Display screen if the vehicle is veering from its lane. The system works in rain and on roads where the lane is marked on one side only.

The Drive

We drove both the NX 200t with a turbocharged 2.0-liter four -cylinder engine and the NX 300h hybrid, with a 2.5-liter Atkinson-cycle gasoline engine. The turbo had a bit of the expected lag and whine one would expect from this powertrain, but did a good job of launching without too much fuss. The hybrid, engineered for maximum fuel economy, is quiet and smooth, perfectly suited for mowing down slower pedestrians at Home Depot.  The vehicle handles well for a small SUV, feeling nimble and more than able to handle the daily activities of the target buyers.

The Challenge

Lexus says that more than 70% of IS buyers are new to the brand, and often from standard, non-luxury mid-size vehicles. This is quite an achievement for the Lexus brand, and is the expectation for NX as well.  That’s a real challenge.  The NX is a real nice CUV, so you have to consider that a vehicle this nice will draw from RX buyers as well, especially given its superior fuel economy (about 28-30 highway) and, presumably, lower price.  RX owners coming in for service or returning a lease vehicle will certainly notice, and consider, this vehicle.

What is is

• Smaller than the Lexus RX, and aimed to compete with Audi Q3, BMW X1, Lincoln MKC. and Mercedes-Benz GLA-Class.
• Arrives at Lexus dealerships in late 2014.
• Derived from RAV4 mechanicals
• Lexus’ first turbocharged powertrain
• Hybrid powered NX 400h will also be available
• Intended to attract younger customers to the Lexus brand.