Two Toyota executives, who wished not to be mentioned, told Automotive News Europe, that Toyota will use a Yamaha motorcycle engine to power its new IQ microcar. The two executives said that Yamaha will design the engine and may even build it for Toyota.

The Toyota IQ, which was shown at the Frankfurt Motor Show this year, was designed at ED2, Toyota’s European design studio in south France headed by Wahei Hirari, Toyota’s Design Managing Officer. With 3+1 seating, the IQ is 425mm shorter than the Aygo and 770mm shorter than the Toyota Yaris.

To keep it that small, Toyota has turned to Yamaha to what sources say will be a 1.0 liter 2-cylinder engine that will be mounted up front.

Toyota plans on introducing a production version of the Toyota IQ to the market in January 2009. The Japanese giant hopes to sell 80,000 units of the world’s smallest four-seater car in the first 12 months of its introduction.

According to Automotive News, when the car hits the European market in 2009 it will cost about €13,000 ($18,030).

Toyota IQ Concept Gallery:

Source: Automotive News (Subscription Required)

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