While Toyota was criticized for tip-toeing into EV territory, it now looks like their pro-hybrid strategy was a good corporate policy. Now, Toyota (plus Mazda & Subaru) are developing smaller gas engines for the next generation of hybrids and PHEVs.
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Coincidentally, I was just reading Ray’s review of the Prius Prime, which makes a strong case for continuation of hybrids since this one has a 600 mile range.