There's a new kind of arms race on the road, except that this one doesn't involve bigger vehicles and more horsepower. Instead, the goal is to make hybrids with higher MPG and/or lower prices. The cheaper-than-the-Prius Honda Insight was the first salvo, even outselling the Prius in Japan in February, and coming down the pipeline is the even cheaper Honda Fit hybrid. Preliminary reports tell us that Toyota's counter-attack will take the form of a next-generation Yaris-based hybrid. Read on for more details.
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