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Toyota plans hybrid Camry, building it in U.S.

Toyota says its best-selling Camry will get a hybrid sibling in 2006, when the model also goes through a redesign.

MSNBC News Services
Updated: 9:47 a.m. ET May 12, 2005

NAGOYA, Japan - Taking its hybrid strategy to a new level, Toyota Motor Corp. announced Thursday that it plans to begin production of a hybrid vehicle based on its Camry midsize passenger car in the United States in 2006.

The project in Kentucky will mark Toyota's second overseas production of an environmentally friendly gas-electric vehicle. The first is production of its Prius hybrid in China starting this fall

As the Camry is the best seller in the U.S. passenger car market with sales reaching 420,000 units last year, Toyota believes application of hybrid technology to the model will become commercially viable in the medium to long term, company officials said.

Toyota is due to carry out a full model changeover on the Camry in 2006.

In the United States, the Prius has aroused strong demand amid rising gasoline prices. But sales are still tiny compared to Camry figures.

The Kentucky project has emerged while Toyota and U.S. carmaker General Motors Corp. are reportedly discussing ways to boost their cooperation in developing eco-friendly vehicles.