New compact roadster will be priced at less than $20,000 in the U.S. and is set to debut sometime in 2012.

Toyota is working on a smaller, less-expensive version of the FT-86 sports car in order to fill a niche in the compact roadster segment.

The new model will measure about 3.8 meters in length (versus 4,160 mm for the FT-86) and will be a rear-wheel drive with a front-mounted engine. That power plant will be Toyota's 3SZ-VE engine - a 1.5 liter 4-banger with 109 bhp (81 kW).

The FT-86, a joint development project between Toyota and Subaru, was introduced at the Tokyo Motor Show last October. It comes with a 2.0 liter Boxer engine from Subaru with an unspecified power output, although there are some hints that the Toyota G-sports version of the FT-86 will feature that engine turbocharged up to around 200 hp.

The FT-86 is expected to come with a price tag of around €17,000 in Europe and a little over $20,000 in the U.S. market.

This new model will be priced below that - at less than $20,000 in the U.S.

The new baby F-86, as of yet still unnamed, is set to debut in 2012.

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