The Detroit News is reporting that Toyota will be revealing a new hybrid vehicle, smaller than the Prius, at the upcoming Detroit Auto Show on January 11, the first day of the show.

Although Toyota is remaining tight-lipped about details, rumors persist that the new Toyota Hybrid will be a subcompact that will see production in 2011 and will be available for purchase in the US in 2012.

While Toyota is the largest producer of hybrid vehicles in the world, even they had a rough year in 2009. This was the first year they have ever had more recalls than any other automaker with a grand total of four million vehicles recalled. While the primary culprit of the recalls was a floormat that would jam the accelerator, the popular Prius is also currently facing a US probe over faulty brakes.

Considering Toyota’s success despite the recall setbacks, it shouldn’t be a surprise that they are moving forward with subcompact hybrid. The Detroit Press’ inside source said that Toyota is confident in the new model and will start by producing 150,000 annually to begin with.