Toyota to put new hybrid-system engine into practical use in 2008

Tokyo, 11/16/2005; The Asahi Shimbun reported that Toyota Motor Corp. in 2008 will put into practical use its third-generation hybrid-system (HS) engine, which will cut prices for eco-friendly vehicles, reduce fuel costs and slash production expenses, company sources said.

The smaller, third-generation HS can be installed on many models. Most of the automaker's midsize and larger models will be equipped with the new engine, they said.

Toyota plans to manufacture key parts of the new HS in the United States to expand the use of the technology around the world, they added.

Toyota's HS combines gasoline power and an electric motor. The system requires less fossil fuel and is thus more environmentally friendly than vehicles that run only on gas.

Toyota put its first-generation HS into practical use in 1997 with the Prius model.

The second-generation HS was put into practical use in 2003. It generated 1.5 times more electric power than its predecessor, and was the world's top HS in terms of fuel-cost efficiency at 35.5 kilometers per liter of gasoline.

The third-generation HS will be even more powerful, the sources said. The batteries will be lighter than the ones for the second-generation HS, but have a higher performance.

Toyota currently produces more than 300,000 second-generation HS engines a year. The automaker plans to double that output for the third-generation HS.

The increased production is expected to halve the difference in manufacturing costs needed for HS and gasoline engines. Currently, the difference in costs is several hundreds of thousands of yen.

The price tag for Toyota's HS-powered Harrier is about 850,000 yen higher than the Harrier powered only by a gasoline engine.

The reduced production costs for the third-generation HS will lead to lower sales prices of HS-powered cars, the sources said.