The SC has consistently been a slow seller for the Lexus brand, which is getting a new performance flagship, the LF-A supercar, in 2009. In the first six months, Lexus sold only 1,230 SC 430s, down more than 40 percent from a year ago.
The 2008 SC 430 is priced at $67,120. It is fitted with a 288-horsepower 4.3-liter V8 that is rated by the EPA at 16 mpg in city driving and 23 on the highway.
Toyota had been developing a successor to the SC, based on the same rear-wheel-drive platform as the LF-A. Originally slated for production in early 2009, the next-generation SC was pushed back to mid-2011 and now has been canceled, according to Toyota insiders.
With development of the next-generation 2012 Camry well underway, Toyota also is studying whether to cancel the planned replacement for the Camry-based Avalon, which currently is slated to go into production in Kentucky in early 2010.
In its place, Toyota may opt to produce a long-wheelbase Camry for such markets as North America and the Middle East. The redesigned Camry currently is slated to begin production in mid-2011.
What this means to you: High fuel prices continue to take their toll on larger, thirstier cars, even those from well-respected Japanese brands. — Paul Lienert, Correspondent

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gilseidman says:
07:25 AM, 01/01/2010
The Avalon may be larger, but it is not thirstier. I consistently get between 30 to 35 miles to the gallon on regular fuel driving at 65 mph with the AC on. Toyota will lose many satisfied customers who want a larger, more luxurious car than you get with Camry. All you have to do is test drive the top of the line Camry against the top of the line Avalon Limited and you will immediately see the difference. You could also read Consumer's Report or any other testing service to find the same conclusion. My feeling is that Toyota wants the Avalon customer to upscale to a Lexus for a higher profit margin.