A version of Toyota's iQ concept, originally shown in Frankfurt, is rumored to begin production sometime next year and according to a couple of sources cited by Automotive News, power will come courtesy of Yamaha. The two Japanese firms are currently collaborating on a new 1.0-liter engine based on one of Yamaha's motorcycle powerplants, although output and fuel economy numbers have yet to be disclosed.

Toyota is expected to produce around 100,000 units, with Europe receiving approximately 80,000 vehicles when sales begin in 2009. Although there's no word on U.S. distribution, the iQ-inspired micro-car may find its way into emerging markets in India and China where low-cost transportation is becoming a booming business.

[Source: Automotive News – Sub. Req.]