TOYOTA and General Motors have signed a deal to work together on the development of low emission vehicles including electric, hybrid petrol/electric and fuel cell cars. The manufacturers said the partnership would combine research and development efforts to focus on the advanced environmental technologies. Both said they would 'aggressively pursue' the development of a fuel cell vehicle.

Toyota vice-president Akira Wada said: 'We cannot make a contribution to the environment unless this technology is extensively disseminated so that it can be used widely. In this respect, the hybrid vehicle is the most promising vehicle with advanced environmental technology in existence today.'

Toyota has already said it will be launching the hybrid petrol/electric Prius in the UK next year and is anticipating around 1,000 sales in the first year.