I'm not sure I'd call the 400h or Highlander Hybrid HSD systems 3rd generation. Though they're clearly improvements/upgrades to the 2G Prius system. With the improved inverter, improved PSD, the new transaxle, and the 3rd motor (MGR) for the rear axle 4WD system I'd call it THS 2.5 or something along those lines. The system design, battery, and presumably software are essentially unchanged.

But clearly this is semantics. It's a hell of a good new system.

Evan E. Fusco, MD
'04 Prius/BC moded to the T
'06 Highlander Hybrid Limited AWD w/NAV