Toyota to halve hybrid price for next Prius

TOKYO - Toyota Motor Corp will slash the price and size of its hybrid system by around half for the next-generation Prius model, and use a nickel-metal hydride battery instead of lithium-ion, a top executive said.

"When we went from the first-generation Prius to the second-generation, we did the same thing," Executive Vice President Kazuo Okamoto, in charge of Toyota's research and development, told reporters in Tokyo.

Toyota, the world's biggest automaker, has not publicly disclosed a timeframe for the introduction of the third-generation Prius model. Some media reports have speculated the planned late-2008 launch would be delayed because of concerns over the safety of lithium-ion batteries.

"I can't tell you when it will come to market, but the preparations are making steady progress," Okamoto said. He added that the next Prius would "definitely" use improved nickel-hydride batteries rather than higher-energy lithium-ion.

Source: [url=http://uk.reuters.com/article/motoringNews/idUKNOA64064420071026]Reuters UK[/url]