Toyota Readies Hot-Hatch Yaris

Toyota Motor Corp. is developing a sporty version of its Yaris subcompact hatchback (known as the Vitz in Japan) to coincide with the company's return to the World Rally Championship race series next year.

A sketch of the souped-up vehicle shows a low-riding body kit with a deep front bumper, side skirts, oversized alloy wheels and large rear wing. Toyota is expected to unveil a concept model in March at the Geneva auto show and launch a production version in Europe later next year.

Power could come from a detuned version of the 1.6-liter turbocharged 4-cylinder engine that will power the upcoming Yaris rally model. The production model likely would make 200 hp, compared with 375 hp for the race car. 

The carmaker also is developing a high-performance version of the Prius C hybrid car, which is sold as the Aqua in Japan. Media reports speculate that the Yaris and Prius C hot hatchbacks could be marketed under a rumored Gazoo sub-brand named after Toyota's Gazoo Racing operations.

The Yaris Gazoo would compete against the Ford Fiesta ST, Opel Corsa OPC and Volkswagen Polo GTI in Europe.