The Prius Chief Engineer Akihiko Otsuka himself confirmed with the Automotive News and Japan's Nikkei newspaper that a Yaris Hybrid is being developed and should be ready for the 2011 model year.
The new Toyota hybrid will be marketed to both Japan and the United States and will be equipped with a version of the Hybrid Synergy Drive system. Expect it to target the lower end of the market and be released with a target price lower than the Honda Insight's $20k tag.
Could a Yaris with HSD hit 65 MPG? It looks like Toyota is about to show Honda how they should have made their new Insight.
Photo credit: Jalopnik
