[Bigbee60]

Contrary to many of the posts above, Toyota can't just stuff more 1.8L engines in the Scion xB's and drop the 2.4L gas hog engine in those models or move it to the Camry to replace the V-6 there. They have a limit on small engine cpaacity due to expansion in Asian and South American markets. They need to sell those 20% V-6 Camry's or not sell anything. Read Wards or the Harbour Report and you will see that Toyota cannot turn the engine/transmission mix on a dime. Yes they do have more small cars in the portfolio, but very few of them are engineered to US crash and emissions standards beyond the Yaris and Corolla/Matrix that are here now. The Yaris has many more derivatives overseas that would fit in the US well, but they aren't engineered to come here in the current generation. Toyota does not have a 50 state compliant diesel. They have supply constraints in hybrid batteries that MAY abate by 2011 (or maybe not). Toyota will be OK, but they are not going to thrive on cars either the next few years as they will miss the huge truck/SUV margins. The $45K Hybrid Highlander will not sell in volume and they did not engineer the platform for a four cylinder in the current model. The RAV-4 V-6 models are the staple of the rental car fleets of late. They will feel pain the next few years no matter what you say.