AutoObserver reports that the next generation Prius will be four inches longer, get a more powerful 1.8 liter gas engine that when combined with electrics will do a total 160 horsepower (compared with 110hp in the current 1.5 liter setup). The kicker is that it'll be more fuel efficient, too. Using Japan's metrics for fuel economy, the current setup gets 84mpg, but the next gen has been reported to run 94 miles under the same conditions. The car is set to be unveiled in 2009. [AutoObserver, photo above of the Prius Concept, not the next gen model.]