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Toyota, Fuji May Collaborate on Hybrid Car Technology

Japanese carmaker Toyota Motor Corporation is reported to be considering letting Fuji Heavy Industries use its hybrid vehicle technology.

Under the plan reported by the Nihon Keizai business daily, Fuji would use Toyota's hybrid system in its Subaru vehicles. If the two companies reach an agreement, Toyota's hybrid technology would become the dominant system in the world.

Fuji sells 35 percent of its Subaru line in the North American market. Toyota has pioneered the hybrid vehicle, which combines a conventional fuel-powered engine with an electric motor, making the car more economical and environmentally-friendly.

U.S. automaker General Motors, which holds a majority stake in Fuji Heavy, has formed a partnership with rival DaimlerChrysler to develop its own hybrid technology.

Some information for this report provided by AFP and Reuters.