I think it really depends, right?
(Car A) Let's say the theoretical new V8 clocks in at 550hp/575lb-ft - or they have a tune of it at that output that's very reliable and hits their performance goals. They can also use this engine on the LX 600, the next gen LS, LF-1 and just for the hell of it, the Tundra TRD Pro. That horsepower is really not AMG or M territory, but it would be a huge upgrade for the LC and maybe Lexus' research shows there is an appetite for such a vehicle. Assume the car with that new V8, a few visual changes, and some minor chassis reinforcement to accommodate the extra power is $115 - 125k with options.
(Car B) Lexus looks at the equipment for an "LC F" and determines that tuning the engine up to 660hp, packing it with BBS wheels, dedicated front and rear bumpers with fender vents, new seats and interior trim, rear mounted transaxle, Brembo brakes, torque vectoring differential, etc. would raise the price of the car to $160k for them to produce and not sell at a loss. Plus, the only other vehicle that could use that same 660hp tune is the LS F, which they have since canned because of sedan sales. And they look at sales of the M8 or the SL63 and feel like the universe of $160k+ buyers is a lot smaller than the universe of prospective buyers at $115-125k.
Car A is the LC 600 F SPORT Performance. Car B is the LC F.
What makes the most business sense?
