You would have thought it was scripted, but it was a very real exchange.

Three automotive journalists and Toyota Canada's managing director Stephen Beatty were en route to dinner in downtown Kingston, Ont. in a 2009 Toyota Prius from Amey's Taxi.

I was among the group and we were in town to drive the latest Toyota and Lexus vehicles, including the brand new 2010 Toyota Prius hybrid. In fact, the first buyers for the new generation gas-electric hybrid were scheduled to take delivery of their new vehicles the following day at dealerships across the country.

The taxi driver learned we were with a group from Toyota and he started raving about the Prius taxi he was piloting around town, talking about the fuel economy, the reliability and the comfort. He couldn't say enough good things about the car, which has been in Canada since 2000 and is now entering its third generation.

Now the driver didn't know that he was talking the ear off the head honcho of Toyota Canada, but you couldn't have asked for a better testament to the benefits of Toyota's hybrid technology. A broad smile crossed Beatty's face as he listened to the cabbie rave on and on.

After all, who better to talk about a vehicle than a taxi driver who spends 12 or more hours a day behind the wheel, most of it in stop-and-go city driving.

While the Prius and its other hybrid models are at the forefront of Toyota's 'green' initiative, the company has long been a leader in the fuel economy sweepstakes across its lineup.

Toyota's goal is to have a hybrid available in every model it produces by the 2020 model year and that seems quite likely considering the speed at which new hybrids are being developed.

Until then, though, Toyota is trumpeting a "more power, less fuel" theme among the bulk of its new vehicles.

Many, like the 2009 RAV4 and Highlander and 2010 Camry feature new four-cylinder engines that offer more power, but use less fuel.

The group of journalists from eastern Canada were in Kingston to see just where the firm is headed with its new Toyota and Lexus models, including the 2010 Prius mid-size hybrid sedan and the 2010 Lexus RX 450h sport utility hybrid.

But clearly, the star of the show was the new Prius, a car that Beatty predicts will take hybrids into the mainstream of the automotive market.

The Camry hybrid is still the firm's hybrid sales leader, but Beatty predicts the new Prius will have a much broader appeal and will overtake it in the near future because "clearly, the new one brings an added touch of style."

What sets the Prius apart is that is designed from the ground up for fuel efficiency rather than being a gasoline-only vehicle fitted with a hybrid powertrain.

The new Prius is the most fuel-efficient, mass-produced car in the marketplace and as Beatty puts it, "less of a science experiment and much more of a car."

As of the end of May, 2009, 14,923 Priuses have been sold in Canada since 2000, but those numbers are expected to rise significantly with the new model that is redesigned from the ground up. More than 2,000 engineers worked on the vehicle, which features more than 1,000 patents.

The body style is similar to the outgoing model, but it is slightly longer and wider and the apex of the roof has been moved closer to the rear to allow more headroom for passengers. Meanwhile, the coefficient of drag has been reduced to 0.25 thanks to the new overall design and tweaks to the body panels, mirrors and other exterior items.

The Hybrid Synergy Drive, a "full hybrid" that can run on either the gasoline engine, the battery, or both, is 90 per cent new for 2010.

Power comes from a bigger 1.8-litre DOHC engine, combined with an electric motor that produces 134 hp (up 24 hp from 2009) and 105 lb/ft of torque (up 22 lb/ft from 2009).

While the engine is bigger, it is more fuel-efficient because it doesn't have to work as hard and the torque improvement allows for lower rpms at highway speed.

Overall, it has 22 per cent more power, but uses seven per cent less fuel. It is rated at 3.7L/100 km (76 mpg) city, 4.0L/100 km (70 mpg) highway and a combined 3.8L/100 km (74 mpg).

My co-driver and I bettered those numbers over a 13-kilometre circuit in and around Kingston and won a fuel economy challenge at the event, averaging 3.4L/100 km (83 mpg) in the Prius. We achieved that mark by trying to stay in Eco Drive and EV modes, timing stop lights, coasting when possible and using a light foot when accelerating. It's not the way either of us normally drives, but we didn't impede traffic (well, not too much) or drive at 30 km/h on the highway (we stayed in the inside lane and kept a steady 80 km/h).

We also drove a couple of competing hybrids back to back with the Prius- the Honda Insight and Ford Fusion to get a feel for what else is in the marketplace and to show how far Toyota's hybrid technology has come.

Our fuel economy numbers prove that ordinary drivers can come very close or match the Transport Canada fuel consumption ratings with bit of thought put into their driving and a light foot on the throttle.

My colleague Rob Beintema has already done a full preview of the Prius and a complete road test will follow later in the year, but it's worth noting that the new Prius has a number of firsts for the model that make it a more driver-friendly car, including a 'beltless' engine (both the water pump and power steering are electric).

It now comes standard with four-wheel disc brakes, tilt and telescopic steering wheel, auto up/down power windows, energy saving LED head lamps and tail lamps, available solar-powered automatic ventilation system to cool the interior, available remote air conditioning operated via the key fob, available intelligent park assist to automatically parallel park the car with minimal driver assistance and available radar cruise control.

The Prius is priced from $27,500, a reduction of about $200 from the 2009 model. Consumers can move up to the Premium Package ($29,610) and you get an upgraded JBL audio system with Bluetooth capability, integrated XM satellite radio, six-disc CD changer and eight speakers, auto-dimming rear view mirrors with integrated backup camera and front seat footwell lamps.

For $31,110 you can add the Premium Package with Solar Panel that gives a solar moon roof equipped with the solar cells and remote air conditioning system that pre-cools the cabin and keeps it comfortable, even when parked.

A 2010 Prius plus Touring Package is priced at $31,345 and includes the Premium Package items plus LED headlamps with the auto-leveling headlamp feature, headlamp washers, fog lamps and larger tires on 17-inch alloy wheels.

At the top end is the Technology Package ($36,565) with has all the premium and solar panel features plus a voice-activated DVD navigation system with backup camera, radar cruise control and pre-collision system. In addition, you get heated leather seats, leather-wrapped steering wheel, auto-dimming rear view mirror and front illuminated doorsill trim.

As you can see, there are lots of packages to consider if you decide to go the hybrid route. It's not an inexpensive buy, but the Prius is an inexpensive car to operate and should be very reliable based on its past history.

The 2010 Prius is poised to take the next step up the ladder and appeal to the masses rather than just the environmentally conscious.

The 2010 Prius is available at dealers now.

Visit www.prius.ca for more details.

TOYOTA PRIUS AT A GLANCE

BODY STYLE: mid-size hybrid sedan

DRIVE METHOD: front engine, front-wheel drive

ENGINE: 2ZR-FXE 1.8-litre WT-1 DOHC four-cylinder with electric motor assist (134 hp/105 lb/ft)

FUEL ECONOMY: 3.7L/100 km (76 mpg) city, 4.0L/100 km (70 mpg) highway, 3.8L/100 km (74 mpg) combined.

PRICE: $27,500-$36,565.

WEB SITE: www.toyota.ca or www.prius.ca

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