Toyota's luxury division introduced a brand-new sport-luxury compact sedan for 2001. Built with rear-wheel drive, the sedan held a 3.0-liter inline six-cylinder engine that made 215 horsepower. Shared with Lexus's larger GS 300, the engine operated with VVT-i (variable valve timing with intelligence). Only a five-speed automatic transmission was offered in the IS 300's first season, but it incorporated Formula One-inspired E-Shift gear selection on the steering wheel. Sharp-edged in design, the wedge-shaped IS body had a semi-fastback roofline. Lexus called it a "condensed high performance stance." Either 16- or 17-inch wheels could be mounted. Front side airbags were installed, along with antilock braking and traction control. A limited-slip differential was available. A chronograph-style instrument panel was said to be inspired by sport watches. Initially designed for the European market, the IS promised to give a "compelling challenge" to European sport sedans. Rivals included the Acura TL, Audi A4, BMW 3-Series, and Mercedes-Benz C-Class.