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Toyota to build hybrids in U.S., president says

Fujio Cho, Toyota Motor Corp. president, views the Scion exhibit during media previews at the North American International Auto Show in Detroit on Tuesday. Toyota Motor Corp. had a banner 2004, selling more than 2 million vehicles in the United States for the first time in its 47 years of existence. (Associated Press / The Spokesman-Review)
Associated Press
Fujio Cho, Toyota Motor Corp. president, views the Scion exhibit during media previews at the North American International Auto Show in Detroit on Tuesday. Toyota Motor Corp. had a banner 2004, selling more than 2 million vehicles in the United States for the first time in its 47 years of existence. (Associated Press / The Spokesman-Review)

DETROIT — Toyota Motor Corp., Japan’s No. 1 automaker, will build gas-conserving hybrid vehicles in the United States, though plans haven’t been finalized, President Fujio Cho said Tuesday.

For now, Toyota builds all of its hybrids in Japan. Cho, in an interview Tuesday with automotive and financial journalists at the North American International Auto Show, said the company will determine by midyear which model would be the most logical to build in the United States.

Demand for the Toyota Prius has far exceeded initial expectations, creating a wait of up to six months for the gas-electric car in some areas. Toyota is set to begin selling a hybrid version of the luxury Lexus RX sport utility vehicle in mid-April and a hybrid version of the Toyota Highlander SUV in June.

“Without a doubt, we will eventually produce a hybrid model in the United States,” Cho told reporters through an interpreter.

Toyota’s planned production for North America this year is 100,000 Priuses, which it hopes will eliminate the backlog of orders. Toyota has sold more than 100,000 Priuses in the United States since 2000, including 53,991 in 2004.

The 100,000 North American forecast is part of a companywide goal to sell 300,000 hybrid vehicles worldwide by the end of 2005.

Moreover, Cho said the company remains bullish on prospects for hybrids even as it and other automakers invest billions on technology for hydrogen fuel cell cars and trucks. Experts say road-ready hydrogen-powered vehicles, which would emit nothing more harmful than water vapor, are at least 10 to 15 years away.

Companies such as General Motors Corp. and Ford Motor Co. have said they consider hybrids to be a bridge to fuel-cell vehicles, but Cho said hybrid technology will remain viable even as fuel-cell vehicles become marketable.

Regardless of what type of propulsion system is used in future vehicles, Toyota executives said, hybrid technology can be used to increase fuel efficiency.

“We believe hybrids will continue to be the core technology in the future,” Cho said.

Hybrids aside, Toyota is expanding its vehicle business rapidly worldwide, gaining ground on GM, the world’s largest automaker.

Toyota expects sales growth in all key regions this year, including the United States, where sales will likely total 2.15 million, up from 2 million in 2004.

Last year marked the first time Toyota sold 2 million-plus vehicles in the United States since it began business here 47 years ago. Its sales rose 10 percent last year and are expected to grow again in 2005, though analysts say at a slower pace.