Toyota FAW Group to Build Prius Hybrids Together in China Bloomberg

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Toyota, FAW Group to Build Hybrids Together in China

By Kae and Tian Ying — 14, 2004 20:39 EDT

Sept. 15 — Toyota Motor the world s biggest maker of vehicles, said it will gasoline-electric Prius cars in with FAW Group, building the hybrid vehicles outside for the first time.

Toyota build its Prius hybrid with FAW at the Chinese carmaker s in northeastern China at the end of 2005, and may another hybrid vehicle a separate FAW brand, the two companies in a press statement. They did not further details about or production.

Demand for the Prius has risen in the Europe and Japan as fuel have surged. Toyota s car may help the automaker compete in with rival Honda Co. which also sells

Toyota, which makes and Corolla cars in China, to triple its share of the world s vehicle market to 10 percent by from 3 percent now.

Toyota shares fell 20 or 0.5 percent, to 4,260 yen in Tokyo at a.m.

FAW s subsidiary Changchun FAW Auto Co. will begin several thousand Priuses a using knockdown kits from Japan, the Nihon newspaper said today.

Exports

Ahead of the start of production, exported Prius will be marketed in China a joint sales venture Toyota and FAW, the paper Changchun FAW Fengyue Auto has making Toyota s Land 100 models since last with Toyota s technological

The Prius sells for about in the U.S. The car can go as far as 55 miles on a gallon of more than double the for a conventional car of comparable size.

sales of the Prius may rise 71 this year to 130,000 Toyota said.

Toyota is answering the Chinese government s to develop vehicles that run on fuels. Under rules June 1, carmakers get tax breaks, and other financial incentives to more fuel-efficient vehicles.

Toyota has started conducting tests on the Prius in China. tests on one car in Beijing took in December and three others begin in Shanghai, Chongqing and The test showed the Prius is 40 more efficient than with conventional gasoline Toyoda said.

The Prius 90 percent less tailpipe than the average new car of a same-size according to the U.S. Environmental Agency. The system uses an electric and a gasoline motor.

At low speeds, the electric motor the vehicle, with the gasoline taking over as the car gains The car s battery pack is recharged the conventional gasoline engine and by the

Toyota is planning to install engines in its Lexus luxury and Toyota-brand pickup trucks.

To the reporter on this story: Kae in Tokyo at kinoue@bloomberg.net .


To contact the responsible for this story: Tang at eugenetang@bloomberg.net .

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