Toyota said that its plug-in hybrid is based on the current-generation Prius, the world's first and most popular hybrid vehicle.

The current partnership involving plug-in hybrid vehicles is being funded jointly with the California Air Resources Board (CARB) and the California Energy Commission (CEC). The goal of this program, which was authorized under California Assembly Bill 1811, is to incentivize the use and production of alternative fuels and vehicles.

Bob Carter, Toyota division group vice president and general manager, said: "We feel there is tremendous promise in plug-in hybrids. However, there are still many questions to be answered and challenges to be resolved before Toyota can bring a product to market that has the quality, durability and reliability that customers expect from us. The universities will help us and California better understand what it will take to turn these options into meaningful solutions."

Scott Samuelsen, professor and director of University of California, Irvine's advanced power and energy program, said: "The Toyota plug-in hybrid electric vehicle represents the introduction of electricity into a fuel mix that supports a full-featured vehicle. Our alliance with University of California, Berkeley will allow us to undertake key research in areas ranging from engineering to social dynamics across the breadth of California."

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