Next Toyota Yaris Sedan to be a Re-Badged Mazda2

According to Khabar Khodro , Last last year, Toyota and Mazda announced a plan that would see the sub-compact Mazda2 shared between the automakers.

Now a new report suggests that the plan is moving forward and that the product will be a badge-engineered Mazda2 sold as a Yaris. It might only be sold as a sedan, and the report also says the deal does not include Toyota using Mazda’s SkyActiv engine technology.

The Yaris hatchback will likely be imported from Japan. It is also unclear if the Japanese giant will keep the Yaris name.

Mazda will begin building the Mazda2 at its Salamanca, Mexico plant in mid-2015.