A Lexus without wood is like Dolly Parton without tits. The music of the experience takes your breath away and yet… you just feel something is missing. Is it the smile? The wig? When I looked at the press release clippings of the Lexus CT200h, I had trouble with the entire car. You want a sporty hybrid with the acceleration of a 15-year-old Camry to compete with the Audi A3 and BMW 1-Series? I know Toyota wants to build more hybrids. But as the owner of two hybrids, I thought this car would represent a Cimmaron moment for hybrids and the Lexus brand. Then I saw it in person. Perception and reality battled it out, and this is what I found.

When an enthusiast looks at the exterior of the CT200h, one word comes to mind: Scion. This car has the design of an expensive, sporty Scion with absolutely none of the ostentation and presence of a traditional Lexus. There is a bit of chrome on the grille, the usual circular L logo, and an awful lot of LED’s on the tail. It does have a presence about it… but it’s more of a youthful vehicle than anything Toyota has ever released under the Lexus brand.

Once you view the CT in person from all angles, it has a flow to its design. Photographing the car from one angle after another makes it look like a discombobulated mass: IS front end, RX rear end, generic bulbous Scion in the middle. In the flesh everything comes into focus and the car looks ten times better.

When you open the door another word quickly leaps to mind: ‘tight’. This is the tightest vehicle I have experienced since the RX-8. Everything is close at hand and to your knee. In fact, I felt even more coddled and claustro in this car than in my first generation Honda Insight. I bumped my head on the roof-mounted grab handle just looking to make a turn and my six-foot-plus AARP-eligible co-rider decided to stick to the passenger seat for much of the ride due in great part to the lack of space.

As an enthusiast, I love the CT’s sports car-like driving position. But folks who battle traffic instead of winding country roads will come to despise it. Outstretched arms and tight quarters in a car that feels small grows old quickly. But at least we have acceleration and handling right?

Well, acceleration is marginal at best, with sixty arriving in the mid-9’s, and and the chassis is taut to the extreme. You feel every one of the road’s imperfections. Changing the settings to ‘comfort’ didn’t make much of a difference. Toyota believes that folks in their 30s and 40s want a hard-riding sports hybrid. If that’s the case so be it. I love my 2001 Insight but it will take a special type of customer to accept this car’s ride and class-trailing speed.

Those in temperate climates with smooth roads will welcome the CT’s fierce grip. On the road, the hatchback feels planted in a way few touring cars can emulate. Thanks to a low center of gravity and the sturctural rigidity of a lead pipe, this Lexus evokes a sports car experience that few four-door competitors can match at the $30k price level. Hybrid or not, the CT makes you experience the drive.

On the road I averaged a bit over 42 miles per gallon. Phenomenal given that I hammered the throttle every time an open road beckoned. Like its drama-free Prius sibling,the CT could have gone north of 60 with a lot of hypermiling, but this car does not encourage a light foot.

In ‘Normal’ and ‘Eco’ modes the hybrid powertrain performs the same as in the Prius, and so struggles to match the quick mid-range acceleration of a sports compact. I get 59 mpg with my Honda Insight on a daily basis, but if I had to drive the CT I would never leave it off of Sport. Even with the mileage penalty… it’s the first hybrid I’ve ever driven that seems happy when properly revved.

Sport mode electronically substitutes a tachometer for the all-too-dippy ‘Ecometer’ and spikes the battery juice. The CT has no trouble finding it’s mojo once it has the extra power. ‘Sport’ modes adds 150V AC power for driving the electric motor thanks to a clever power inverter that converts the DC power from the battery. In real-world driving this extra push in power combined with outstanding handling and fuel economy makes the CT a fun-filled and frugal Scion… I mean a de-wooded Lexus.

It’s enough to make the CT a competitive alternative in a miniscule segment where the Audi A3 TDI is absolutely dominant and the Volvo C30 and BMW 1-Series are trailing. America has barely a minutiae of interest in the ‘entry level premium sports compact segment’. Would you believe only 1,500 units a month for all three models combined? Yes Americans rarely like to spend $30k+ for a long description that amounts to small expensive cars with limited horsepower.

That’s the first challenge I see with this vehicle. The second is that the CT is a first-generation acronym going up against well-pedigreed Europeans. Lexus disagrees, but I would also wager that the MINI and GTI will be hellacious competitors. That’s not all. The Prius still offers 20% better fuel economy and the Fusion Hybrid has become a popular and established presence in the $30k+ market. The CT will have a tough time getting noticed in this premium crowd.

The final challenge Lexus will face: staying the course. Toyota always struggles with establishing a sporty car in the marketplace… and keeping it there. Only the IS has found a sporty niche within the entire Toyota/Scion/Lexus portfolio circa 2010. Celica, Supra, MR2, SC, are all dead to those looking for a new sporty Toyota in the USA. Such a shame

Otherwise Toyota North America currently offers the stubby Scion tC (that was neglected for several recent years) and a couple of limited production ‘F’ series vehicles. This lack of sport pedigree will mean the CT will have serious trouble attracting the up-and-coming luxury car buyers who consider BMWs and Audis the gold standards of the sports compact segment.

Toyota seems realistic about the CT’s short-term prospects: it’s only forecasting 12,000 sales a year. So, especially if gas prices continue to dance ever closer to European levels, this car will stick around. But for God’s sakes! Lexus, give this thing some more wood!

Lexus provided the vehicle, insurance and one tank of gas for this review.

We’ve been hearing about the Chevrolet Volt for so long that it’s hard to believe that it is finally here. Or almost here. Close enough for a preview drive. And?

I never expected the Volt to look like the obviously impractical original concept. Similarly, I was not surprised that the production Volt resembles a prettified Prius, since the Toyota’s styling so successfully communicates its advanced technology to the general population. The most questionable aspect of the exterior design: the ultra-wide glossy black beltline moldings. They’re intended to disguise the small size of the side windows. Why not just make the windows larger? Because this would increase the load on the battery-powered AC.

Does the Volt’s interior seem like that of a $33,500 (post tax credit) car? Well, no. I was more impressed by the materials and workmanship of the much more conventional interior in the related, much less expensive, conventionally powered Cruze. But the Volt’s interior is distinctively styled, effectively communicates the car’s technology, and is significantly nicer than the interior in the Prius. If the Prius interior is good enough for a nearly $27,000 car (with nav)—and sales suggest that it is—then the Volt’s is good enough for a $33,500 car. Don’t care for the glossy white iPodish trim? Then get the dark trim instead. The reconfigurable LCD displays seem to provide a wealth of information, including a grade on your driving style (92 while I was trying to behave). But they provide no clear indication of when braking is hard enough to engage the conventional brakes (reducing efficiency). Also, no report of miles per kW-h while running off electricity. According to the GM exec in the back seat, few people desire such numerical statistics. Though GM will be adding features in the future—the Volt will be a work in progress. And more detailed reports are already available on the Internet, where the Volt regularly uploads data via OnStar. The controls on the center stack are the touch-sensitive type that recently debuted in the 2011 Ford Edge and Lincoln MKX. Whether or not you like them—I do—they’re the future. The oddest bit among the various odd bits of the interior: you must reach into a cave at the base of the center stack to grasp the shifter when it’s in Park.

The rake of the distant windshield is reasonable, obviating the need for windowlettes ahead of the doors. In the current GM fashion, the A-pillars are thick, if not quite to the point where they reduce safety more than they enhance it. Rearward visibility is considerably worse—the optional Park Assist Package is highly recommended. The front seats don’t feel as substantial or as solidly upholstered as those in the Cruze, but they do provide decent lateral support. Unlike in the Cruze, there’s only a single manual height adjustment, so the tilt of the seat cannot be adjusted. The rear seats are the weakest aspect of the car. Low to the floor, overly firm, and cramped, unless you’re a child (or the size of one) you won’t be comfortable. Cargo volume beneath the wiperless hatch is similarly marginal, but will do for typical around town errands. The Prius offers considerably more room for both rear passengers and cargo.

The Volt’s powertrain is more complex than previously imagined. Around town with the battery pack at a viable level of charge, the primary 149-horsepower electric motor-generator powers the car through a fixed gear ratio. At highway speeds this ratio becomes too short, so a second, smaller motor-generator engages the planetary gearset to reduce the ratio. Once the battery pack is depleted (figure 30-50 miles), a 84-horsepower 1.4-liter gas engine automatically starts. Around town it spins the smaller motor-generator to send power to the primary motor-generator via the battery pack. At highway speeds with the battery pack depleted, the second motor-generator again engages the planetary gearset to vary the transmission ratio, but now with the gas engine coupled to it. In this last mode the gas engine enjoys a mechanical connection to the front wheels. While this mechanical connection has purists a little perturbed, it is more efficient when running on gasoline. Personally, I’d prefer a mechanical connection at lower speeds for the same reason, though perhaps the powertrain design, with the engine only driving the planetary gearset through the smaller motor-generator, precludes this.

So, what does it all feel like? Surprisingly normal. I feared that a gas engine decoupled from the drivetrain and running to suit the needs of the battery would sound odd. Would the engine sometimes be racing while sitting at a traffic light? As it turns out, no. If anything, the Volt’s engine sounds less disconnected from the accelerator than that in the typical CVT-equipped conventional car. Transitions among the various modes are not only smoother than those in the Prius or Ford Fusion Hybrid, but are nearly undetectable. In some situations the engine might be a little too undetectable, as it sometimes generates a low frequency rumble right at the edge of perception. A barely perceptible noise can be more annoying than one a bit louder.

GM suggests that, given the high torque output of the primary motor-generator, the Volt feels about as strong at low speeds as a V6-powered sedan. Well, not really. But even with four adults aboard the Volt does feel considerably more energetic than a Prius, and almost as quick as the Ford Fusion Hybrid. Three driving modes are available, including one for mountains and “sport.” I detected little difference between normal and sport, apparently because my foot was too heavy. The modes make the most difference with the pedal less than half way to the floor. Moving the shifter from D to L aggressively engages brake-energy regeneration whenever you lift off the accelerator, nearly eliminating the need to use the brake pedal. I found this too aggressive for typical around town driving, but it would no doubt be welcome on a hilly road.

Only the first five miles of my drive were on battery power—there hadn’t been much time for a recharge since the car’s previous outing. I then babied the car for a while, and achieved about 35 MPG. The second half of my drive—when I was seeking the claimed V6-like low-speed performance—burned a gallon of gas every 28 miles. These figures are about five MPG short of the Fusion Hybrid when subjected to similar (mis)treatment, and about 10 to 15 MPG short of the Prius. GM envisioned the gas engine as backup power which most owners would not need often, so it was optimized for cost not fuel economy. They also talk about improving this aspect of the Volt in future iterations, with just about anything a potential future power source.

The biggest surprise: the Volt handles significantly better than either the Cruze or the Prius. GM has long demonstrated a talent for making cars feel larger and heavier than they actually are. With the Volt they’ve at long last accomplished the (for me at least) more desirable opposite. The steering isn’t exactly chatty, but through it even a fully occupied Volt feels light and agile, with minimal understeer, far exceeding my expectations. In contrast, even the latest Prius feels oddly heavy and pushes wide in turns. While the Volt is still certainly no sports car—even the Ford Fusion Hybrid feels a little sportier—it’ll serve well as a commuter. I sincerely hope the Volt team shares its chassis tuning tricks with the rest of GM.

Body motions are fairly well controlled, though some additional damping would be welcome. The Volt’s ride is a little firmer, busier, and noisier than that in the Cruze, but the Cruze rides better than anything else in its class. The Volt’s does ride better than the Prius and Fusion Hybrid. Among efficiency-maximizing alt-energy cars, this is about as good as it gets.

People have been critical of the Volt’s pricing, but a $7,500 tax credit brings the net MSRP down to $33,500. Nearly everything, including nav and the fancy displays, is standard. Options are limited to heated leather seats, the Park Assist Package, and polished wheels. TrueDelta’s car price comparison tool suggests that the Prius lists for about $4,000 less when both cars are equipped with leather, nav, and 17-inch alloys. A Ford Fusion Hybrid with nav lists for only $1,150 less. Adjust for feature differences (most notably a sunroof, unavailable on the Volt), and the Ford’s advantage increases to about $3,000. Adding leather to both cars adds about $1,000 to both figures—Ford kicks in additional savings when all of the boxes are checked. Three or four grand isn’t pocket change, but it seems reasonable for the Volt’s extended electric-only capability. Likely a better value: GM is offering a lease for $2,500 down and $350 a month.

So, my first drive of the Chevrolet Volt included a few surprises, nearly all of them to the upside. The largest: oddly enough, the handling. The powertrain most impressed with its normalcy. The largest disappointment: the small rear seat. GM has clearly put a great deal of thought and effort into this car, and achieved a much higher level of detailed execution and refinement than I thought possible just a few years ago. My personal commute extends all the way from the second floor of my home to the first. So no Volt for me. But if you daily spend an hour or two commuting, and the thought of expending no gas in the process excites you, then go ahead and get in line. At least initially, there’s likely to be one.

GM provided the vehicle, insurance and very little gasoline for this review

Michael Karesh owns and operates TrueDelta, an online source of automotive pricing and reliability data

Any way you slice Toyota’s sales figures for the past 5 years, its obvious that despite a ballooning product portfolio Lexus is in a world of hurt. Sales are down, the other import brands have improved their quality and buyers seem to be embracing a more performance-oriented (or is that German-oriented?) luxury style. But rather than re-orienting the Lexus brand to directly take on surging BMW, Audi and Mercedes sales, Toyota has doubled down on its major competitive advantage: hybrids.The recently-launched HS250h was Lexus’s first stab at an entry-premium hybrid, but after just a few months on sale it’s already going nowhere fast. With CAFÉ changes looming, Lexus may eventually benefit from an all-hybrid luxury line-up, but in the meantime the very idea of a luxury hybrid needs a shot in the arm. Is the CT200h hatchback hybrid the answer?

On the surface the CT200h looks like it could be the long-lost hatchback cousin of the IS250/350, but in reality it’s related to the HS250h, itself a derivative of the European Toyota Avensis. Despite sharing relatively few parts with the Toyota Prius, some critics have slammed the HS250h for being nothing more than a “Lexus Prius,” despite the fact that it comes with a version of the more powerful Camry Hybrid drivetrain. If that’s a problem for you on principle (it really shouldn’t be), you might want to stop reading now. Under the CT200h’s hood lurks the same 1.8L Atkinson cycle engine and Hybrid Synergy Drive system as the current generation Prius.

One of the many complaints about the HS250h has been its lackluster fuel economy and weak performance. Of course the HS250h could have been forgiven if Ford hadn’t released the Lincoln MKZ hybrid around the same time. The Lincoln hybrid is considerably larger than the HS, matches the Lexus for 0-60 acceleration, and beats it by a full 6 MPG on the freeway. In order to correct the problem, Lexus put the HS/CT shared platform on a diet and the result is that the CT200h tips the scales at 3,130lbs a 550lb weight reduction over the HS. Sounds good, right? The answer is a resounding maybe. The weight loss certainly makes the CT200h feel more nimble and no doubt contributes to the higher EPA numbers of 42/41/42 (highway/city/combined), but much of this improvement comes from swapping out the 187HP Camry Hybrid powerplant in favor of the relatively anemic 134HP Prius engine. Comparisons to Honda’s weak-sauce CR-Z are inevitable and not entirely unwarranted.

Naturally the forums will be alight with chatter proclaiming the CT200h to at last be “the real Lexus Prius,” but (as usual) the comments will be missing a few key details. The CT is six inches shorter than the Prius overall and rides on a four inch shorter wheelbase, and aside from the engine and Hybrid Synergy Drive system, the CT200h shares few parts with the Prius. Unfortunately one of the things the CT200h doesn’t share is the Prius’s 51/48/50 MPG fuel economy numbers (EPA, highway/city/combined) which is curious since the Prius is not much lighter than the CT.

Behind the wheel it is obvious to anyone who has spent time in Lexus’ other models that the CT200 is expected to be the cheapest Lexus available, starting at around $30,000. It would be unfair to say the materials are cheap, but they are certainly less than I would expect from Lexus. The dashboard and rear door trim plastics are particularly disappointing, and the memory seat controls look like an aftermarket addition. Fortunately the steering wheel really shines; it’s well-weighted, perfectly-shaped and feels exactly the way it should.

And in general, if you keep your hands to the controls, you’ll be OK. A 110 mile test drive gave ample opportunity to become acquainted with the interior and the only real quibble I have is the Lexus Navigation system. The system uses the same mouse/joystick like controls that have been spreading across the Lexus lineup, but the picture quality is less than inspiring and I don’t find the controller to be particularly user friendly. The location of the Nav screen up high on the dash doesn’t make using the system any easier.

Gadget lovers will appreciate the standard Bluetooth hands-free system with Bluetooth audio streaming, full iPod and USB device control, XM Radio, keyless go, dual-zone climate control, LED tail lamps and “bamboo charcoal speakers” in the audio system. Conspicuously absent is a Mark Levinson sound system available in other Lexus models. For those who want to option up their CT, Lexus offers a power moonroof, full LED headlamps, hard drive based nav system, adaptive cruise control with collision warning, in-mirror backup camera and several wood trim options. Keeping in mind that the CT200h will be the entry-level Lexus, the option list is fairly extensive.

In the bright light of day, the CT200h turns from an entry-level gadget lover’s dream to a mixed bag. Lexus is billing the CT200h as a sporty compact luxury hatch, but they only nailed half the formula… and let’s just say the CT is undoubtedly a compact hatch. Lexus says the competition for the CT is the Volvo C30, Audi A3 and the BMW 1-Series (personally, I would have forgotten about the 1-Series and included the Mini, but what do I know?). Luxury is in the eye of the beholder, and though the CT’s interior is a nice place to be compared to the self-proclaimed competition, it falls short of the level of luxury found even in Volvo’s C30. Sure the CT has better electronic toys (and a hybrid drivetrain), but as a place to spend time, the C30 is demonstrably better.

Our pre-defined route took us out on California State Route 243, portions of which were moderately twisty and well banked. On these winding mountain sections, the CT holds the road with finesse. The chassis is well behaved if not overeager, and even the electric power steering fails to detract from the mountain carving fun. Sadly the same cannot be said of the 134HP hybrid drive. Adding insult to underperformance, the sounds coming from under the hood cannot really be described as either sporty or luxurious. It’s not as bad as some four-bangers, but it’s not up to the standard of a brand built on admirably unobtrusive drivetrains. But even this could be forgiven if the CT’s acceleration was even remotely satisfactory, but there’s the final chink in the sporty hatchback armor: the CT’s manufacturer estimated 9.8second 0-60, which is actually slower than a Prius. This makes sense when you consider the Prius is lighter, but the end result is something along the lines of a softer Jetta TDi that doesn’t handle quite as well. Yes, it’s taut and composed in the corners, but when the road straightens you get nothing.

As I flew home from Palm Springs I was quite possibly more puzzled about the CT200h than I was when my journey began. It’s not a new paradigm of efficiency. In fact it’s only marginally better than the Lincoln MKZ hybrid that rendered its bigger brother irrelevant (although it is cheaper). It’s not particularly sporty either (do I need to say more than “slower than a Prius”?). And even at $30,000 (and up, if you want all the toys) it won’t be a huge amount cheaper than the HS250, which delivers more room and a bit peppier performance along with a more premium feel. Since the CT200h was designed to strengthen Lexus sales in Europe, it makes a certain amount of sense. Europeans are far more likely to accept a moderately prices cheap and cheerful small hatch with a nearly 10 second 0-60 time that is marketed as “sporty.” The same cannot however be said of Americans, and at the end of the day the CT200h appears to be a decent landing at the wrong airport.

Lexus provided airfare, lodging and hospitality for this press launch event