Toyota, Nissan to Work Together to Develop Gasoline-Electric Hybrid Vehicles

TOKYO -- Reuteurs reported that Toyota Motor Corp. and Nissan Motor Co. are planning to work together to develop gasoline-electric hybrid vehicles in a rare example of cooperation between fierce rivals that promises to help speed the development of more affordable and environmentally-friendly cars.

Toyota, Japan's largest car maker, and No. 3 Nissan will share technological knowledge to make a new generation of hybrid vehicles for the U.S. market by 2006. The companies hope to cut costs by splitting some engineering and development work and by using common components in a larger number of vehicles. It wasn't clear how many hybrid vehicles both companies hoped to manufacture.

Under the agreement, Toyota will supply hybrid-car systems to Nissan for 10 years or longer, the companies said. Nissan aims to introduce a car in the U.S. using the hybrid system currently under development by Toyota.

Nissan expects to sell 100,000 units of the hybrid car during the five years to 2011.

Japanese auto makers lead the world in development of gas-electric hybrid vehicles, which combine an electric motor and a gasoline engine to increase fuel efficiency and cut harmful emissions. Such gas-electric hybrids are not as clean as pure electric vehicles, but are more practical because they have greater range and don't need recharging. Toyota has already sold nearly 100,000 of its hybrid Prius sedans since the model went on sale in 1997.

Honda Motor Co. (HMC) is also a leader in gasoline-electric hybrid vehicles. Honda sold more than 6,000 of its new Civic Hybrid in the U.S. since the car went on sale there in March. Nissan has also developed a hybrid vehicle of its own but sold only about 100 of them in 2000 before ending the program.

Nissan president Carlos Ghosn has said that Nissan wouldn't re-enter the hybrid race unless it could find a way to turn a profit on the cars. Because the market for hybrid vehicles is still relatively small, auto makers face a big challenge recouping the costs of developing the technology.

Still, auto makers around the world are hoping to use hybrid vehicles to help them meet increasingly stringent environmental regulations in the U.S.

Ford Motor Co. is hoping to sell a gasoline-electric powered Escape sport- utility vehicle in early 2004 while General Motors Corp. (GM) is hoping to roll out a hybrid-powered pickup truck in a few years. GM and Toyota have been working together on environmental technology, though, they haven't yet announced any concrete plans for joint products or projects. Nissan is working with partner Renault SA of France to develop fuel-cell vehicles.