"Toyota Motor Corp., which used the green image of its gasoline-electric Toyota Prius to propel a U.S. sales surge, has decided to delay by one to two years the launches of new high-mileage hybrids with lithium-ion battery technology because of potential safety problems. The slowdown could offer General Motors Corp. and other rivals a chance to narrow the gap in the race to define future clean-vehicle technology."
"Until recently, Toyota was preparing to roll out a dozen new and redesigned hybrids using new lithium-ion battery technology in the U.S. between 2008 and 2010. Its hybrids now use nickel-metal-hydride batteries. But safety concerns with the lithium-ion technology have forced Toyota to back away from that timetable, people familiar with the company's strategy say."
"Toyota also postponed plans for hybrid versions of its big and fuel-thirsty Tundra pickup and its Sequoia sport-utility vehicle, though the executives added there is a chance Toyota would revive big-truck hybrids and come out with them by 2013 or 2014. GM and Chrysler LLC, owned by Cerberus Capital Management LLP, plan to launch hybrid large SUVs next year, using a system developed jointly by GM, Chrysler, DaimlerChrysler AG and BMW AG.
The batteries Toyota is trying to develop use particles of lithium cobalt oxide. But such batteries have shown a tendency to overheat, catch fire or even explode. Tomomi Imai, a Toyota spokesman in Tokyo, declined to comment. But, according to Toyota executives, similar problems with lithium-ion batteries for laptops made by Japan's Sony Corp. sounded an alarm because the chemistry of the Sony batteries was similar to batteries Toyota was trying to use for future hybrids."
Toyota Delays Next Hybrids on Safety Concerns - WSJ.com