Toyota, Nissan Partner On Hybrid Systems

Compiled ByJill Jusko Japanese automakers Toyota Motor Corp. and Nissan Motor Co. Ltd. say they have reached a long-term agreement they hope will ultimately boost the sales of hybrid vehicles and lower the cost of hybrid-vehicle components. Under the 10-year agreement, Toyota will supply Nissan with certain hybrid-system components, while both companies will begin discussing joint development of hybrid-vehicle components they now pursue independently. Initially, Nissan will begin installing a hybrid system under development by Toyota in vehicles Nissan expects to sell in the U.S. in 2006. The components for the hybrid systems, including the transaxle and inverter, will be developed by Toyota, while Nissan will work to develop its own engine. Hybrid vehicles, such as gas-electric, are touted primarily for their environmental benefits. They emit cleaner exhaust gas and less carbon dioxide than traditional vehicles.