Nissan Altima Hybrid Set for 2006

By the time the Altima Hybrid hits the market in 2006 as a 2007 model, announced recently at San Francisco Nissan

In a strange twist, Toyota is supplying Nissan with its sophisticated hybrid gasoline-electric system. (Photo: Nissan Canada)

event, rival and HEV parts supplier Toyota will most likely have its Camry hybrid on the market, while no doubt competition from the big three will also enter the fray.

In case you didn't hear that right, in an odd but mutually beneficial agreement Toyota is supplying Nissan with its sophisticated hybrid gasoline-electric system.

For a relatively small premium over the price of a base Altima, there's a lot to be gained from the hybrid version in both performance and efficiency. (Photo: Nissan Canada)

The Altima Hybrid will make use of a Nissan-built four-cylinder gasoline engine as its main source of power, mind you.

To those on the outside of the industry peeking in, such cooperation between Toyota and Nissan might come as a bit of a shock, but to those with their ears to the ground (and regular readers of this automotive news column) it won't be as the two Japanese companies made a deal in September of 2002 where Nissan would get Toyota HEV technology to produce 100,000 hybrid vehicles over the course of five years. Components made by Toyota that will be used by the Altima Hybrid include the transmission, inverter, battery, and control units. Note that the product itself is built by Nissan at its facilities.