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When I think of a smaller RWD car from Toyota, I think of an MR2.
That being said.. Why not just take something like the 1.8L out of the current Corolla, throw it in the middle of the chassis, RWD, basic interior, decent styling exterior, small, narrow 16" wheels, make it around Miata size, and call it a day?
Half the parts would come from other cars in the lineup, which would lower production costs. Keep it all basic with the mindset that the people who buy it are just going to modify it anyways. No need for big 18" wheels and crazy nonsense.
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