CNBC had a small segment about Lexus vs BMW a few days a ago. Basically they were saying that Lexus is changing its focus from competing with Benz to the BMWs Ultimate Driving Machine. I think its obvious when you look at the IS350. Its compared to the 3 but rarely ever to the C klass.

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2003 BMW X5 3.0i Steptronic, Sport, Prem, Rear Climate, Xenon