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TOKYO (APOnline) — Toyota and Nissan announced Monday that they will work together to develop hybrid gas-electric cars.

Under the deal, Toyota will supply components for Nissan models sold in the United States starting in 2006, targeting 100,000 vehicles over a five-year period.

Hybrid vehicles reduce polluting emissions by switching back and forth between a gasoline engine and an electric motor. They're also more convenient than all-electric vehicles because they run on regular gas and don't have to be recharged.

Toyota has taken the global lead in introducing mass-produced hybrid vehicles, having rolled out the Prius hybrid sedan in 1997. Since then, Toyota has sold 120,000 hybrid vehicles worldwide.

Toyota has a general agreement with U.S. automaker General Motors to cooperate on environmentally friendly technologies. But no specific deal on hybrids, like the one with Nissan, has been reached with the Detroit manufacturer, Toyota said.

In the past, Nissan, which is 44.4% owned by Renault SA of France, has repeatedly said producing hybrid vehicles has not been profitable. It discontinued its Tino hybrid hatchback after selling a limited number in 2000, but continued spending on the technology.

Buying hybrid system parts from Toyota will allow Nissan to cut development costs.

The world's major automakers have all been working on hybrid technology. Tokyo-based Honda also has begun selling hybrid models.


While this may help Nissan get into the hybrid race here in America one can only wonder if they will market their cars as "The most powerfull hybrids on the planet"