While the domestic carmakers are experiencing such terrible performance, Toyota is simply moving from strength to strength. Tokyo’s MarketWatch reports that the Japanese giant plans to cut the cost of its hybrid technology in half over the next three years. Further, Toyota’s head of research and development stated that the company will cut the weight of its hybrid drivetrains also. This inturn will increase both the fuel efficiency as well as the performance of its vehicles.

The new drivetrains will feature in the next generation Prius that’s due in 2009, and should reduce the current price penalty of the car from $4,000 down to $1,900. Honda is also hard at work enhancing its own hybrid technology. Early speculation has put the fuel economy rating of the next Prius around the 90mpg mark; hopefully Toyota will be able to at least come close to this figure.

Via Autoblog