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Toyota 1X

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I was wondering how feasible it would be to make an REEV vehicle with a small engine running constantly at peak efficiency continually recharging a smaller battery pack. In theory it would only have to create just enough power to sustain a moderate highway speed, which for an aerodynamically designed vehicle isn't that much compared to the power need to accelerate.

It seems like that is what Toyota is aiming for here. Basically using a battery and electric motor to allow a much smaller engine to run at the average power level needed instead of having an engine large enough to produce the maximum power that a driver would want. This to me sounds like a much better intermediate solution until BEVs become more affordable. And something like this already has the drive hardware, and could have a larger battery installed later to become a pure BEV when it's affordable.
 
A few more details here:
Chicago 2008: North American Debut of the Toyota 1/x

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