We've known for quite some time that Toyota would be introducing the world to its third-generation Prius hybrid sedan at next year's Detroit Auto Show. Expected to be powered by a revised and enlarged 1.8-liter engine and electric motors, the new model aims to continue Toyota's hybrid dominance, at least for the next few model years. We also expect Lexus to get its own more luxurious version of the Prius, and Inside Line is reporting that it will come in calender year 2010 and could be the first
According to Automotive News, Toyota might be looking to develop a compact SUV to compete with the Acura RDX, BMW X3, the recently introduced Infiniti EX35 and the soon-to-be unveiled Audi Q5. The market for luxury cute 'utes is growing as people either downsize their larger SUVs and, in some cases, abandon the suburbs for more urban environs where a traditional SUV is too big to cope.