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Camry May be Toyota's First U.S. Built Hybrid May 2005

Toyota could begin building a gas-electric hybrid version of its popular Camry sedan at the automaker's Kentucky factory early next year, according to published reports in Japan.

That would be Toyota's first U.S.-made hybrid and could add appreciably to the number of fuel-saving gas-electric vehicles on the road.

U.S. Toyota spokesmen couldn't confirm the reports Tuesday but said the scenario is possible. Toyota said earlier this year that it would announce a decision on U.S. hybrid production at midyear. So far, all have come from Japan.

"Camry is a key vehicle for us, and it would make sense to hybridize it and make it in the U.S.," said John Hanson, spokesman for Toyota Motor Sales USA. He said he requested more information from Japanese officials after he read the Japanese news report Tuesday. Because of time differences, he didn't expect an immediate reply.

The Camry is a logical next hybrid for Toyota. Its mechanical layout and size are similar to the Highlander and Lexus RX SUVs, both of which offer hybrid models. The similarities would make adapting a gas-electric drive system for use on the Camry relatively easy.

A hybrid's blend of power from a gasoline engine and an electric motor can provide up to double the fuel-economy rating of a similar gasoline vehicle. But fuel-cost savings usually don't compensate for a hybrid's $3,000-plus price premium.

Toyota's Prius, the best-selling hybrid, is rated 55 miles per gallon in combined city-highway driving. A similarly equipped Toyota Corolla is rated 33 mpg. Rival Honda's Civic hybrid is rated 48 mpg in combined driving; the gas-power Civic is 34 mpg.

Making hybrids in the USA could cut prices and boost supplies.

"Consumers would win. Any time you localize a vehicle, you're better able to respond to consumer demand," says Daniel Sieger, spokesman for Toyota Motor Manufacturing North America.

It operates the big factory at Georgetown, Ky., where Camrys and the mechanically similar Solara coupes and convertibles and Avalon sedans are manufactured. The plant, in operation since 1988, built about 470,000 cars last year. It has a capacity of about 500,000.

Toyota plans to make hybrid power a routine option on most vehicles, something a buyer could choose as casually as deciding on a CD player or sunroof. U.S. production would shorten the pipeline from factory to showroom and make it easier for buyers to order hybrids.

Honda says it has no plans for U.S. hybrid production. Honda hybrids, all from Japan, are the Insight two-seater and hybrid versions of the Civic and Accord.

Ford Motor's hybrid Escape SUV is manufactured at Kansas City, Mo.

SOURCE: USA Today
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