Toyota to Assemble Prius in China

TOKYO September 15, 2004; CBS Marketwatch reported that Toyota Motors China FAW Group said Wednesday they have agreed to jointly produce Prius gasoline-electric hybrid vehicles in China by the end of 2005.

The move marks the first overseas production of Prius outside Japan.

Toyota and FAW Group, which already produces low-end Corolla and Vios models in China under a partnership that began in August 2002, signed a basic agreement Wednesday to jointly promote the widespread use of hybrid vehicles built in China.

Under the agreement, both companies agreed to explore a possibility of introducing a FAW-brand vehicle featuring a hybrid system based on Toyota technology.

Prius production will be made in China, through assembling knockdown kits sent from Japan, Toyota said.