With gas prices breaking the $4 mark and in some places $4.50, a Microcar is exactly what we need. Many other counties have mini/macro-cars because gas and space.

The Smart Fortwo has been a bit-of-a-hit in the USA with the people that are willing to spend a ton on so very little so I hope that the is going to be priced according to size. Below is a little segment about Toyota coming out to fight against Honda with 2 hybrids.

According to Technoride, the two vehicles will be allotted to the Toyota and Lexus brands respectively, and will add to the third generation Prius, due out next year. While little is known of the Lexus, the car maker’s head of r&d, Masatami Takimoto, emphasized that the new Toyota hybrid will not be just another iteration of the Prius. “It’s a totally new car,” he said, adding that it will be larger and will likely get a Li-ion pack by 2010.

In addition to new hybrids, the production version of Toyota’s iQ microcar is expected to hit showrooms later this year as well.