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Consumer Affairs

Toyota Delays Third-Generation Prius



Toyota Motor Corp. is postponing the launch of the third generation Prius hybrid by six months, in part because of safety concerns with a new lithium-ion battery.

Toyota now hopes to roll out the new Prius in the spring of 2009, according to Japanese industrial daily Nikkan Kogyo Shimbun.

The company decided to delay plans to replace the nickel-metal hydride battery used in the hybrid system with a lithium-ion battery for the first version of the new model because of quality control and safety concerns, according to the Japanese paper.

The Prius went on sale in 1997 as the world's first mass-market hybrid car. It was markedly improved for the second generation launched in late 2003.

By far the best-selling hybrid car in the world, the Prius has established Toyota's image as a "green" automaker.

Toyota is increasing production of the Prius by 40 percent this year to 280,000 units, although margins on the car are believed to be thin due to the high cost of the hybrid system.

Toyota sold 186,000 units of the Prius in 2006, and 313,000 hybrid vehicles in total.

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