As Toyota plots a slew of new sports cars with old names—like the Celica and MR2—the automaker is developing a new gas engine for hybrid setups.

But even though gas price hikes have put a scare in the market, Toyota has an ace up its sleeve. A diesel V8. A powerful V8 turbo-diesel engine is expected to be one of the available powerplants ...

In the press release, Toyota didn't disclose the 2.0-liter turbo engine's output but hinted in an interview with Japanese journalists during TAS that it could make over 400 horsepower. During the ...