Rumors: Toyota to Delay Launch of New Hybrids

Japan's Toyota Motor Corp. will delay by one or two years the rollout of new high-mileage hybrids with lithium-ion batteries because of safety concerns, a newspaper reported Thursday.

Toyota's decision was prompted by worries that the batteries could overheat, catch fire or even explode, the Wall Street Journal reported in its online edition, quoting unnamed Toyota executives.

It said such fears were heightened by problems with similar batteries made by Sony Corp. for laptop computers which prompted a massive recall last year.

The Japanese auto giant, which is enjoying brisk sales of its fuel-efficient vehicles, was planning to launch a dozen hybrids using the new lithium-ion battery technology in the US market between 2008 and 2010, the report said.

A delay would give its rivals such as General Motors Corp. a chance to catch up in the development of future hybrids, it noted.

Toyota hybrids currently use nickel-metal-hydride batteries.

Hybrids with lithium-ion batteries could achieve 60 to 70 miles a gallon in normal operation, compared with the existing Prius's 40 to 50 miles per gallon.

The first Toyota hybrid with lithium-ion battery technology now will not be launched in the United States until early 2011, the Journal quoted unnamed company executives as saying.

The automaker also delayed plans for hybrid versions of its Tundra pickup and Sequoia sports utility vehicle, it added.

Toyota officials were not immediately available for comment.

The Japanese automaker, which is battling General Motors for the title of world number one, pioneered mass production of the low pollution petrol-electric hybrid vehicles along with rival Honda.

Toyota has sold more than one million hybrids since they were introduced a decade ago.