Lexus May Add Two Hybrids, Toyota Revs Up Battery Production

Lexus is considering the addition of two dedicated hybrid vehicles. Currently, Toyota offers conventional and hybrid options on several Lexus products, but the company is thinking about putting together two hybrid-only concepts for Lexus, reportedly to debut at the North American International Auto Show in Detroit in January 2009.

At that venue, the Lexus hybrids would be paired with the next generation Toyota Prius. One concept would be an upscale version of the Prius. The other would be a mid-sized crossover SUV. Toyota is expected to migrate its entire hybrid line, including these concepts and the next-gen Prius, to lithium-ion batteries.

Toyota announced earlier this week that it will open a third battery production facility in Miyagi, Japan to supply itself with batteries for its hybrid vehicles. The new plant - the second announced in a week - will produce nickel-metal hydride batteries at an initial rate of about 100,000 units per year, or half of the plant's maximum capacity. The plant will be operated by Panasonic EV Energy Co., as part of Toyota's joint venture with Matsushita.

Toyota expects to have the redesigned Prius on dealer lots by mid-2009 and will sell them as 2010 models. The first Lexus hybrid would be available sometime in calendar year 2010 and the second hybrid would hit the streets in 2011. All three vehicles will tee off of the company's mid-sized platform, which also serves the Camry and RX programs. The hybrids will likely be 1.8L gas-electrics and will retail for something north of $30K.

Sources: Edmunds Inside Line, Detroit News