Does Toyota Really Need a Car Smaller than the Yaris in the U.S.?

There have been rumors circulating since last September that Toyota is planning on introducing a car smaller than the Yaris to compete with the upcoming Smart, in the U.S. Well spy photographers have noticed a few Peugeot 107’s driving around Michigan.

It is interesting since in Europe, Peugeot, Citroen and Toyota have a partnership that produces this car, the Citroen C1 and the Toyota Aygo. Toyota has a technical center in Ann Arbor near where these cars have been spotted. This car could be serving as a test mule for the upcoming Toyota that is rumored to be coming here in 2008. The current Aygo has a 1.0L 3-cylinder engine that produces 50hp.

Does Toyota really need a car smaller than a Yaris in the U.S.? It’s a cute car and would be a great gas saver if they offered it with the diesel  engine that is offered in Europe. Although it does look bigger than the SMART.Toyota_aygo

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