At this point we are dealing only with rumors, but here is a place to start looking:
http://www.greencarcongress.com/...
The UK's AutoExpress reports that Toyota's fuel economy target for the upcoming next-generation Prius is 40 kilometers/liter (2.5 l/100km, or 94 mpg US), and that the automaker is striving to have the new Prius on the road as early as 2008.
According to a Toyota engineer quoted by the publication, the entire electrical system is being redesigned to improve the fuel economy, and the automaker is working to switch to a lithium-ion battery system from the NiMH pack used in the current Prius.
Part of the impetus for the dramatic improvement in fuel consumption is to position the Prius to compete more effectively against the more fuel-efficient diesels that now dominate the European market, according to the report.
More below the fold...
In some ways this is good news - I say bring on the competition. At the moment I drive a diesel (and get ~50mpg), but I know that in Europe you can get diesel cars that do much better than this.
In some ways it is sad though. This reminds me of what a car company should be like. I think of GM who is still pushing the big SUVs as hard as they can. GM who has fought every attempt to increase CAFE standards. GM who illegally bought up streetcar systems in cities across the United States and scrapped them to replace them with diesel busses. I think of GM that will ultimately be in Chapter 11. It will be a sad day for the workers.