Toyota introduces the 2010 Toyota Prius. The most notable upgrade is “the adoption of a larger-displacement, 1.8-liter inline-4 engine with variable valve timing (intake valves only) — makes 98 horsepower at 5,200 rpm and 105 pound-feet of torque.” Video after the break. Click here for first picture in gallery.

The 1.8-liter uses cooled exhaust gas recirculation to enhance fuel economy, and an electrically driven water pump eliminates the need for a power-robbing serpentine belt.

[via Edmunds]