It's still a rumour, but this is the most concrete news yet that Toyota will jam its Hybrid Synergy Drive into the smaller Yaris hatch.
With the Prius sitting a hefty wad of cash above Honda's new Insight hybrid, and the diminutive iQ only available in certain markets (and only available with two doors), the Yaris and the Corolla are plausible recipients of Hybrid tech that will return the Hybrid market strangle-hold to Toyota.
But the Corolla could cannibalise Prius sales, and may not necessarily be the best size for a market craving cars with small footprints that can fit into even smaller spaces.
Also the Insight was basically built off the platform of Yaris competitor, the Jazz...
Today, Automotive News reports the Japanese automaker is indeed working on a hybrid Yaris platform for 2011. It's smaller 1.3-litre petrol would be a match for the Insight's powerplant, but cost considerably less than both the Honda and its own Prius.
No further details have come to light as yet, but stay tuned...
We're giving away the last great Aussie Holden V8! Enter here for your chance to win!
Sign up here to receive the latest round-up of Wheels news, reviews and video highlights straight to your inbox each week.