It looks like the Toyota FT-HS hybrid sports car concept that appeared at the Detroit Auto Show may become a reality to compete with Nissan 350Z. The problem is it's looking like Toyota is primarily using the hybrid system as means of improving performance rather than efficiency. Apparently Toyota will offer two versions of the car, the base model using a 330hp version of their 3.5L V-6 to match the Z, and a higher performance 400hp version with the hybrid powertrain.
Although the hybrid version is probably more efficient than a comparable 400hp conventional drivetrain, if Toyota is serious about being an environmental leader they would say the 330hp (or less) is enough and do a hybrid with a smaller ICE and better efficiency and emissions than the Nissan at comparable performance levels. But even mighty Toyota is susceptible to the schizophrenia (I know it is surely the wrong medical term, but most people will get my meaning) that afflicts most carmakers who want to be seen as green while still appealing to as large and as profitable a customer base as possible.
[Source: Winding Road]