wouldnt it also cannibalize sales from the lower end lexuses, as well?
seems a fine line to me between an avalon (stretched camry) and a lexus.

i glanced at the new lexuses at the LA auto show, and i miss the old
IS300/IS300sportback. im weird though.

I own both a new '06 Avalon and just sold an '05 Accord EX V6 - the new
Camry IS much better looking than the Accord and it's the SAME V6, same HP
(268 hp) as the Avalon. Remember, the HP ratings on all cars dropped (Avalon
from 280 to 268) with the new testing standards last fall. The V6 will run
quite well on regular, as that's all I've used in the Avalon - premium is
required for "maximum performance".  There's still a Civic in the garage for
use behind the RV. It does appear the Honda engineers have their work cut
out for the next generation.

I wanted to see how Toyota dropped the Avalon 3.5 liter V6 into the
all-new 2007 Camry.  The horsepower is down a notch, but the Cary
probably is making do with regular gas, unlike the Avalon.

The bigger news is how elegant the Camry looks -- it's a cross between
the G35 and the TL.  Could just as easily have been called a Lexus.

A few photos are on the toyota.com website.  The official roll-out is
in March.

Honda engineers must be frantic.  I hate to say it, but the new Camry
somehow makes my '04 Accord look dowdy.