After weeks of speculation about a new low-cost Toyota hybrid, it's finally been confirmed that Toyota is indeed working on a new cheaper hybrid that will fit in below the Prius.
The new hybrid is going to use the same Hybrid Synergy drivetrain as the new Prius installed in the Yaris platform. This is obviously an answer to the Honda Insight that is cheaper than the Prius. Honda is also planning a hybrid Fit, so the new Yaris-based hybrid would also go head to head with that vehicle.
Toyota's new cheaper hybrid could be on the market by 2011 at the earliest.
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