2nd Gen and 3rd Gen Prius will both be available for sale

The cheaper Prius?

New reports indicate that Toyota is planning to keep selling the current Prius, based on the second generation Hybrid Synergy Drive, as it also starts selling the third generation Prius. The current Prius, according to these reports, will be sold as a cheaper Prius, perhaps offering even less amenities as a base Prius.

Hard to wonder if this has always been Toyota's plan, or if Honda has rattled Toyota's hybrid thinking. With cheap gas and a weak economy, cheap hybrid cars seem like the much better deal, which is exactly where Honda has positioned its new Insight.