The liftback was designed around the theme of "powerful simplicity," but our first impression was that it's cute as the proverbial bug. It has character, with its wedgy profile, large front halogen headlamp clusters, creased hood lines and T-grille. Almost every exterior element is body-colored, but it avoids looking like a featureless blob due to strategic placement of black trim around the base of the A-pillar, on the B-pillar, on the two strips that run the length of the roof, the front grilles and foglamp surrounds, and at the base of the windshield.

The rear hatch opens down to the bumper line and raises just high enough to allow a six-foot-tall person to stand under it. Like everything else about the Yaris, the hatch's function feels just right. Opening of the hatch is well damped by two struts, and closing it takes no more than a gentle downward push.

The sedan's theme is "Simple is Cool," which is based on the Japanese art of flower arranging, where unnecessary decoration is shunned in place of a single, simple design. It's significantly longer than the liftback, by 3.5 inches in wheelbase and a whopping 19 inches overall. Its long, stretched cabin, arched beltline and short overhangs give it sporty proportions, and the multi-reflector halogen headlights lend it a premium look. Longer and wider and riding on a much longer wheelbase than the Echo sedan it replaces, the Yaris sedan has proportions that work together to create a sportier car.

Despite their distinctive styling, both the sedan and liftback share a 0.29 coefficient of drag, an excellent number that helps quiet the ride and increase fuel economy at cruising speeds.

The standard running gear consists of P175/65R14 radials on 14-inch steel wheels, and the brakes are front ventilated discs and rear drums. The suspension is independent in front, with a semi-independent torsion beam in the rear.