Toyota Motor North America president Jim Press said the Japanese automaker plans to pursue a plug-in hybrid vehicle, touting the long-term potential of gas-electric hybrids on America's highways. Press said Toyota is also "strongly considering" a program to develop flexible fuel vehicles in the United States capable of running on E85, an alternative fuel made of 85 percent ethanol.
Plug-in hybrids use larger battery packs that can be recharged through a typical 120-volt outlet, allowing a driver to travel locally on battery power before the vehicle switches to the gasoline engine. Some observers have expressed concern about the ability of the electrical grid to support the vehicles, but supporters say most plug-ins would be recharged at night.