WHAT’S NEXT FOR THE TOYOTA YARIS

• Expect the redesigned 2012 Yaris to wear an evolution of the
  2007-2011 generation’s egg-shaped bodies. Dimensions aren’t likely to
  change much, and front-wheel drive will return. Some reports say the
  next Yaris could adapt a version of the highly efficient platform that
  underpins Toyota’s iQ city car. Already on sale in Europe and Japan,
  that petite hatchback is destined for sale in the U.S. as a Smart
  fighter from Toyota’s youth-oriented Scion division.
  

• Toyota will have to scrutinize the sales numbers and the
  competitive field to decide if the 2012 Yaris warrants all three
  current body types. The automaker will also need to determine whether
  the Cyclops dashboard layout should survive. The basic Yaris design is
  sold in both left- and right-hand-drive markets around the world.
  Anything that accommodates cost-efficient assembly with minimal
  re-engineering has a lot going for it, even if it does make for an odd
  driving experience.
  

Return of a small four-cylinder gas engine is a certainty. Fuel
economy will be a priority, and odds are that Toyota will add a
gas-electric hybrid model to the next-generation Yaris lineup. It may
not come until model year 2013 or so, and maybe not even under the
Yaris badge. But the intent would be a hybrid priced well under
$20,000, positioned below the larger Toyota Prius, and aimed squarely
at the Honda Insight and at a possible Honda Fit hybrid.