 Although Eiji Toyoda was initially keen to take advantage of the, at that time innovative, FF concept (front-mounted engine with front-wheel drive), it proved technically too complicated for Toyota engineers to be able to complete within the allotted time, so the decision was made to switch to more conventional FR layout.The Publica was inspired by the successful Citroën 2CV which also used a 2-cylinder, air-cooled, horizontally opposed engine, with front-wheel drive.In spite of the fact that the government sources announced that significant tax breaks would be made for cars with engine displacements of less than 500 cc, Toyota decided that such a small engine would provide insufficient power on the highways, and increased the planned displacement to 700 cc.