After a five-year run in its original form, Lexus' IS 300 entry-level sport sedan has been overhauled for the 2006 model year and will go on sale in October. Now available with 2.5-liter or 3.5-liter V-6 engines in the IS 250 and IS 350 the car is closer than ever to the BMW 3 Series in size and performance. All-wheel drive is an option for the first time. The IS 300's smaller size and younger image may have held it back in the market. The new model is a few inches larger in all dimensions, and its styling is more mature, inside and outside. The car is rear-wheel drive to meet the performance requirement, with all-wheel drive available only on the IS 250 with a six-speed-automatic transmission. The standard transmission is a six-speed manual, though the IS 350 comes only as an automatic. Even with six gear ratios to work with, the IS 250's acceleration is modest. Lexus cites 0-to-60-mph times of 7.9 seconds with rear-wheel drive and 8.3 seconds with all-wheel drive. This seems about right. As reflected in the table, both engines hit their torque peak more than halfway up the engine-speed range, so the IS 250 doesn't launch as quickly as I'd hoped. The 2005 IS 300 had only slightly more power but significantly more torque, with a peak at a lower 3,800 rpm. New and Old Engines Compared 2006 IS 250 2006 IS 350 2005 IS 300 Engine Type 2.5-liter V-6 3.5-liter V-6 3.0-liter inline-6 Horsepower 204 @ 6,400 rpm 306 @ 6,400 rpm 215 @ 5,800 rpm Torque (lbs.-ft.) 185 @ 4,800 rpm 277 @ 4,800 rpm 218 @ 3,800 rpm Redline 6,600 rpm 6,600 rpm 6,600 rpm Required Fuel premium unleaded (91 octane) premium unleaded (91 octane) premium unleaded (91 octane) Manufacturer data Conversely, the IS 350 gets a move-on at a tap of the accelerator and is substantially quicker: Lexus says 5.6 seconds to 60 mph. The automatic transfers power well: smoothly under moderate acceleration and without wasting power under heavy acceleration. The kickdown lag is acceptable. Both engines use by-wire throttles, which often introduces a delay in response. The IS has it too, but it's only a fraction of a second, not nearly as bad as in some cars. The automatic transmission includes a clutchless-manual mode that's activated by sliding the gear selector into a sequential-shift gate. A forward bump of the lever triggers an upshift, and a rearward motion downshifts the most intuitive approach and the opposite of BMW's. There are also Formula One-style shift paddles on the steering wheel. The disappointment, if you're into this kind of shifting, is that the mode doesn't lock the transmission in a gear. It simply locks out the gears above the one selected, just like the numbers in the old PRND321 shift pattern. Also found on many Mercedes-Benz and related Chrysler models, this execution misses the point. Transmission modes should be fully automatic or fully manual. Here it's a non-feature. As for fully manual, you still can't beat the stick shift and clutch pedal. The standard issue is a leather-wrapped knob atop a medium-length, medium-throw stick that's well within reach. Ahead of EPA estimates, Lexus predicts fuel economy: Lexus-Estimated Fuel Economy (mpg) City/Highway Combined IS 250 Manual 20/29 23 IS 250 Automatic 24/32 27 IS 250 Automatic AWD 22/28 25 IS 350 Automatic 21/28 24 Lexus estimates based on EPA procedures While both models have four-wheel disc brakes with ABS, brake assist and electronic brake-force distribution, the IS 350 has larger discs and four- rather than two-piston front calipers. There's no mistaking the difference. The 350 stops with greater authority, has better pedal feel and affords much finer modulation. The 250's do the job, but after experiencing the 350's, I didn't want to go back. Handling is where the two models are most alike. They exhibit the reflexes expected of a double-wishbone front and multilink rear suspension. I was particularly impressed with the roadholding of the standard Dunlop SP Sport 5000M 17-inch al