Earlier this year, Toyota discontinued its smallest model, the Yaris hatchback. Shortly thereafter, Toyota introduced an all-new 2020 Yaris, which is actually a rebadged version of the Mazda2 (a car that isn't sold in the United States). The move did not come as a huge surprise considering the Yaris sedan was already a rebadged Mazda2 dating back to its days as the Scion iA.

This isn't the first time we've seen Toyota outsource production and design of a car, as was the case with the 86 and Supra. But interestingly enough, outsourcing Yaris production to Mazda was not Toyota's global strategy. The company has just revealed an all-new model in Europe and unlike the car we get in the states, this one is actually built by Toyota.

The new Yaris is built on the company's TNGA (Toyota New Global Architecture), specifically the GA-B platform. It will be offered with a 1.5-liter three-cylinder engine mated to Toyota's fourth-generation hybrid system. In select markets, non-hybrid versions will also offered with 1.5- and 1.0-liter three-cylinder gas engines. Toyota hasn't quoted any output figures but claims the new hybrid drivetrain will be 15 percent more powerful and more than 20 percent more efficient than the outgoing car.

Comparatively, the US-spec Yaris is only offered with a Mazda-sourced 1.5-liter four-cylinder engine producing 106 horsepower and 103 lb-ft of torque. The US car is estimated to get around 40 mpg on the highway but we have little doubt the European hybrid model will be far more efficient.

Inside, the US-spec car clearly looks like a Mazda but with a Toyota badge on the steering wheel. The new European Yaris, by contrast, looks more like a downsized version of the Corolla and seems like it has more potential for sporty variants in the future. Since the US car isn't actually designed or built by Toyota, we highly doubt there will ever be a sportier TRD version. But the European car was built by Toyota, so we expect the supercharged GRMN version to make a comeback in this generation with even greater performance.