Report: Toyota to Produce iQ-Based Subcompact

According to Japan's Nikkei, Toyota's planning a new subcompact Smart fighter for Japan based on the iQ minicar concept it revealed at the Frankfurt show earlier this month. The concept is less than three meters long and seats three adults and a child, but the reported production model will seat four adults and two IKEA lamps (possibly on the roof), one would imagine. It'll be powered by a one-liter gas engine, though a diesel option is on the table. Due date for the new mini, which will be geared toward Europe, but may be sold in Japan, is 2009. [via Green Car Congress]