Toyota plans to launch a new $16,000 subcompact hybrid, according to a report in Japan’s Asahi newspaper. The car, expected in late 2011, will use the platform and engine of the Yaris subcompact—but will feature a unique name, design, and a hybrid system that is more cost-competitive than the company’s other hybrid models.
Toyota has confirmed its plans to produce a smaller less expensive hybrid car. "We are developing a low-priced hybrid vehicle like Honda's Insight," said Akihiko Otsuka, chief engineer of the third-generation Toyota Prius. "We are going to compete by expanding our hybrid-vehicle lineup to smaller hybrids, in the class of the...Yaris.