Volkswagen Arteon vs Lexus IS300H

What's the difference?

Some VW models, like the Golf, are household names. No doubt about it. But this? Well, it's probably not one of them. Or not yet.

This is the Arteon, the German's brand's flagship passenger vehicle. Put it this way, if VW's tag line is premium for the people, then this is the most premium. And the people? Well, they're the ones who might normally be shopping for a BMW, Mercedes or Audi.

The name, by the way, comes from the the Latin word for art, and it's a nod to the design focus that's been employed here. It comes in a shooting brake, or wagon, body shape, as well as this, the Liftback. And a quick spoiler alert, it looks pretty good, right?

But we'll get to all that. As well as the big question - can it mix it with the premium-brand big boys?

One question frequently discussed in the skunkworks of the CarsGuide office is: What exactly does Lexus stand for?

When the brand debuted its original export-market IS sedan in 1999 the messaging was more or less clear: Toyota’s premium sub-brand was here to be a Japanese BMW.

The brand even employed Nobuaki Katayama – chief engineer on the iconic Corolla AE86 program – to again take the reins of its small rear-wheel drive sedan program.

As the years went on though, Lexus changed. Fundamentally geared toward the US market, the second-generation (wild IS F aside) became a bit more sedate and softer around the edges, while the third generation strayed even further from the sedan’s performance-inspired roots, leaning into a plush interior, hybrid drive, and even CVT transmissions.

This brings us to today’s Lexus IS. Essentially a heavy facelift of the third generation (which arrived back in 2013), the brand has “reimagined” its core sedan with a tweaked design and updated technology for 2021.

Is it enough to keep it relevant against its ever-present European rivals and the newly arrived threat from Hyundai’s Genesis G70? I took a signature IS300h hybrid for a week to find out.