A new rumor churning out of the rumor mill is pointing to rather good news for the Lexus IS fans in  Europe about the Japanese firm planning an wagon variant on the next generation of its Lexus IS. Being the hot selling market of wagons, the wagon variant will compete with the BMW 3-Series and Mercedes C-Class in Europe.

This marks Lexus’s second attempt into bringing a estate version of IS after its first generation IS 300 SportCross hit the markets in 2005.  Lexus admits that that not offering a wagon in Europe has deeply wounded the overall sales of the car and to compete with the existing rivals, the wagon version will be just the right decision. The third-generation of the IS lineup is due out in 2011 with the wagon version too expected to make its debut during the similar timeline.

It is also being hinted that next generation IS will most likely be available as a hybrid only version as Lexus too drifts with the new eco friendly march of the manufacturers and the strategy with standalone hybrid models like the HS 250h and the CT200h.