Inside sources revealed to Autocar that the Toyota iQ could form the basis for another, larger car. The new model will compete with the upcoming Volkswagen Up!

When the iQ arrives early in 2009 it will be powered by a choice of two petrol and one diesel engine. All will be ultra-clean, meeting upcoming Euro 5 and Euro 6 pollution limits. A stop-start system will further improve economy.

The iQ project started back in 2003, for a market slot that Toyota described as “small yet premium”. One senior Toyota source said he expects the car to be priced “between the Fiat 500 and the Mini” and Toyota expects to sell as many as 500,000 examples of the iQ and its upcoming baby SUV in 2009.

Toyota will not offer a hybrid version for the iQ because there is no room for a battery pack (the iQ is just 2.99m long).


Source: AutoCar

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