Building on the success of the second-generation gasoline-electric Prius, Toyota has made progress managing environmental issues across the life cycle of automobile design, production, sales, distribution and recycling.

Our customers tell us that they are interested in our environmental investments and innovative technologies, provided we meet their price and performance requirements as well, said Hideaki Otaka, president of Toyota Motor North America.

That’s why we’re investing in vehicles that increase efficiency and fuel economy, while lowering emissions, he added. Ultimately, our goal is to ensure that automobiles continue to power prosperity.

As part of Toyota’s Five-Year-Environmental Action Plan, the company will launch two new sport utility vehicle (SUV) hybrids in 2005, the Lexus RX 400h and the Highlander. In addition, Toyota is ahead of the required compliance schedule for certification of its vehicles to the new Tier 2 and LEV II emission standards.

Meanwhile, over the past year, Toyota’s manufacturing plants were able to achieve reductions in energy use, water use, and emissions of volatile organic compounds a full two years ahead of its five-year action plan schedule.

In the area of new commitments, Toyota has pledged to voluntarily phase out the use of certain substances of concern, such as mercury and lead, in all Toyota, Lexus and Scion vehicles sold in North America.