• The Wall Street Journal , Thursday, October 16, 2008 10:33 AM

Measuring less than three meters long and delivering 54 miles per gallon, Toyota's four-seat, bubble-like iQ was unveiled Wednesday in Chiba, Japan, John Murphy reports. The non-hybrid vehicle will compete overseas with Daimler AG's super-mini Smart car, which has been a hit in Europe and the U.S.

The iQ goes on sale in Japan on Nov. 20 with a starting price of ¥1.4 million ($13,720). Sales will begin in Europe in 2009. Toyota is still considering whether to introduce the car to the U.S. market. If it does, Toyota will need to reinforce it to protect back-seat passengers from rear-end collisions.

Silicon Valley-based, electric-car start-up Tesla Motors, meanwhile, is cutting staff and delaying the introduction of its second battery-powered vehicle, the Model S, until 2011, the Journal reports. Tesla chairman Elon Musk, one the firm's chief financial backers, is assuming the post of CEO, replacing Ze'ev Drori, who will stay on as vice chairman.

In a blog posting on Tesla's Web site, Musk says Tesla will focus on its roadster model, introduced in 2006, and on sales of its electric power train. He blames the cutbacks on the global financial crises.

Read the whole story at The Wall Street Journal »