Three-Day Work Weeks, A Li-Ion Plant In Portugal, and Wow At Geneva

In an effort to stanch the bleeding, Toyota says it may cut European production in a move that will leave the automaker with a three-day workweek in most locations. Toyota says that it is forecasting a 30 percent decline in European sales in 2009 and doesn't expect to recover fully for three to four years. Another option the company is considering involves shuttering its European plants for three months, leaving workers with just five days' pay. Overall, Toyota says its goal is to preserve permanent employment at its plants and is negotiating with the autoworkers' union in Britain to achieve that goal.

Despite the glum predictions, Toyota says it still expects to sell about 67,000 hybrid vehicles, a 15 percent increase over 2008 sales figures. The company also says it believes it can meet its 2010 sales goal of 400,000 units of the new Prius in 2010. Toyota also uncovered the RX450h Lexus hybrid, which it plans to sell in Europe in 2010.

Slow sales haven't stopped the competition, however. Nissan introduced a diesel-electric concept that sports a look reminiscent of the Fisker Karma or Tesla Roadster. The Essence two-seat luxury hybrid sedan features a 434hp, 3.7L diesel engine coupled with a 158hp electric motor. The company hasn't said whether it plans to put the vehicle in production, but did announce plans to study the construction of a lithium-ion battery plant in Portugal, leaving many to speculate that a production version of the Essence will see the light of day.

Last year, the national government in Portugal announced plans to build a nationwide charging network for plug-in electric vehicle as part of its plans to reduce CO2 emissions. Renault-Nissan will begin selling electric vehicles in Portugal in 2011, and also has zero-emission plans in Denmark, Monaco, Yokahama, Japan, Tennessee, Oregon and California.