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Next Generation Prius to Stick with Nickel-Hydride Power

Lithium-ion batteries still not ready to hit the road

By Joe Benton
ConsumerAffairs.com

October 31, 2007

"When we went from the first-generation Prius to the second we did the same thing," executive vice-president Kazuo Okamoto, in charge of Toyota's research and development, said at the Tokyo Auto Show.

Toyota will not disclose when the next generation of the Prius will be available. The Japanese automaker has attempted unsuccessfully to develop a lithium-ion battery system for the hybrid and the slow pace of development has contributed to the delay of the new Prius.

"I can't tell you when it will come to market but the preparations are making steady progress," Okamoto said. He added that the next Prius would definitely use improved nickel-hydride batteries rather than higher-energy lithium-ion.

Toyota concedes that lithium-ion batteries will require more research and development before all of the safety concerns about the system are resolved.

Toyota executives admit that Honda Motor Co. is their biggest rival in developing new hybrids. Honda, which already markets the Civic hybrid, has announced plans to produce a hybrid that will compete head to head with the Prius. Honda also plans a hybrid sports car.

Toyota has set a goal of selling a million hybrids a year soon after 2010. As part of the effort, the company plans to make hybrid systems available across the Toyota vehicle line-up.

Introduced in Japan in December 1997 and the following year in the U.S. the Prius has been by far the most successful hybrid, selling a cumulative 829,000 vehicles. In all Toyota has sold nearly 1.2 million hybrids.

The company is on target to sell in excess of 185,000 Prius cars in the U.S. this year alone.

The Prius has also helped Toyota build an image as the home of fuel-efficient cars and environmentally friendly cars. The Japanese automaker offers a hybrid version of the Camry but the Prius far outpaces the newer Camry hybrid in sales.

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