Toyota to Make Prius with China September 2004

Leading Japanese automaker Toyota Motor Corp. will launch Chinese production of the popular Prius hybrid sedan as early as next year in collaboration with China FAW Group Corp., a news report said.

Through local production of the environmentally conscious vehicle, Toyota seeks to enhance the Prius' brand recognition and help make the hybrid car popular in the Chinese market, the Nihon Keizai Shimbun said.

The move will mark the first overseas production of the Prius, the newspaper said.

FAW subsidiary Changchun FAW Fengyue Auto Co. will begin manufacturing several thousand Priuses a year with knockdown kits shipped from Japan, the newspaper said.

Ahead of the start of local production, exported Prius sedans will be marketed in China through a joint sales venture between Toyota and FAW, it said.

Changchun FAW Fengyue Auto has been making Toyota's Land Cruiser 100 models since last fall with the Japanese firm's technological assistance, it said.

Auto production is estimated to grow to between seven million and 10 million units in 2010 in China, raising concerns about air pollution resulting from excessive emissions, the Nihon Keizai said.

To address this issue, Beijing announced its support for development of next-generation hybrid and other environmentally conscious cars in its new automobile policy released in June, it said.

It also hammered out a plan to improve the average fuel efficiency of domestically produced passenger cars by 15 percent from the 2003 level by 2010, the newspaper said.

Toyota has been promoting its hybrid car technology to make it a global standard, agreeing to license it to Nissan Motor Co. and Ford Motor Co, the Nihon Keizai said.

SOURCE: Channel News Asia

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