I have also seen articles (in the prius forum) speculating that the prius doesn't
get high enough mpg to compete with Europe's small diesels either. The
turbo diesel Beetle (non-hybrid) can get hwy mileage close to a prius.

Toyota is designing their 2007 Prius to get 94 mpg (and slightly more power)
to make it more competitive in Europe.

http://www.greenhybrid.com/discuss/1...sted.6897.html

I wonder how Honda will respond to a car like that?

It is going to be very cool to watch the hybrid wars heat up, with gas around
$3.20 here now (up .35 from a month ago) there is lots of incentive.