The sedan will get Toyota’s third-generation hybrid system, which promises to be both smaller and lower priced, reports Japan’s Asahi newspaper. The new drivetrain will also feature in the next generation Prius that’s due in 2009 as well as other hybrid Toyota models. It should reduce the current price penalty of being green from $4,000 down to $1,900.
Toyota’s also looking in to rolling out hybrid-only station wagons and minivans down the track. A diesel hybrid is expected by 2010, and should achieve ratings of over 50mpg, even with the tough new EPA standards.