Read the article.
Quote:
Toyota says it has redesigned virtually every element of the Hybrid Synergy Drive system to lower the size and weight of the components.
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The 2013 Toyota Prius C uses a 1.5-liter Atkinson Cycle gasoline engine producing 73 horsepower, along with a 45-kilowatt (60-hp) electric motor-generator. Total maximum power output of the combined system is 99 horsepower.
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I highly doubt that final drive would be crippling the car. If you look at the 2nd gen (1.5L) Prius BSFC map, as soon as you hit above 1200 rpm you're in a very good bsfc area all the way to redline. Yay for the atkinson engine.