Toyota sets up factories for hybrids

Toyota Motor Corporation has announced that it is planning to set up factories producing hybrid cars in Australia and Thailand.

Demand for fuel efficient hybrid cars has in the past been low due to the high costs of the vehicles.

However, the record price of oil has seen interest in hybrids rise, leading Toyota to implement a plan to produce 10,000 hybrids every year by 2010.

Toyota will set up production lines for Hybrid cars in its existing factories, modifying procedures as necessary.

The decision to set up the factory in Australia was largely made due to the offer of grants and other financial support from the Australian government.

Local and national government bodies are together contributing AUS$70 million towards hybrid production.

In other news, Toyota recently announced the development of a new zero-emissions vehicle powered by electricity from fuel cells.

The new car has a longer cruising distance than previously developed models, and is able to operate in below zero temperatures.