Toyota Hits the Brakes on Next-Gen Hybrids

Today's announcement that Toyota will delay by one to two years its next generation hybrid vehicles because of safety concerns with lithium ion batteries augurs both trouble and opportunity for other automakers as well.
General Motors, in particular, has been feverishly trying to play catch-up with Toyota's hybrid technology--and has bet big on lithium-ion batteries, not only for its hybrid cars and trucks, but for its Volt electric car as well. Today's announcement suggests that the technical obstacles to getting stable lithium-ion batteries are bigger, or perhaps more costly, than previously understood. The batteries Toyota is trying to develop use particles of lithium-cobalt oxide. They have shown a tendency to overheat, catch fire and even explode. GM is counting on a different type of lithium-ion technology based on iron phosphates, which company spokespeople say, is more chemically stable. GM's plans for rolling out its first plug-in hybrid with lithium-ion batteries, the Saturn VUE Green Line, are currently still on track. The car could hit showrooms by late 2009, roughly the time that Toyota hopes to have its next-generation Prius ready to go.