Toyota considering new compact models for U.S.

Toyota is considering launching smaller and more efficient models in the U.S. to help improve its fleet average fuel economy levels in light of stricter CAFE regulations scheduled to roll in over the next decade. At the top of the list is the recently revealed Urban Cruiser, a compact SUV positioned below the RAV4 and targeted at fuel conscious Europe. Another key model is a production version of the A-BAT concept, a compact hybrid pickup that was displayed at last month’s Detroit Auto Show.

The information comes from Toyota’s U.S. sales chief Jim Lentz, who spoke recently with Automotive News. Lentz explained that there was room for both vehicles in the U.S. market but said no final decision had been made yet. "As we look to 2020, when we have to get 35 miles per gallon (fleetwide), that's a big challenge," Lentz revealed.

The Urban Cruiser is based on the Yaris small car platform and is considerably smaller than the current RAV4, which over the years has grown to rival the larger Highlander SUV. The A-BAT, on the other hand, is built on a unibody car platform and is packaged with Toyota’s Hybrid Synergy Drive.

One option would be to market the cars under Scion label as both cars are not much bigger than the current xD econo-box. This fits in with earlier claims from Scion boss Steve Haag who previously stated Scion wanted to expand its lineup and could possibly add a hybrid model.