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Toyota officials confirmed the company will build a hybrid-drive version of its best-selling Camry model in the US, alongside its gas-only counterpart at the company's Kentucky plant. The new Camry, expected in 2006, would be the second of Toyota's hybrid cars that won't be produced in Japan (the Prius will be built in China), and correspond with a complete makeover of the Camry for the 2006 model year. Suspiciously, as the Detroit News points out, the announcement was made just as Toyota is reportedly in talks with GM to explore possible joint ventures on "eco-friendly vehicles."

Toyota eyeing production of hybrid Camry in Kentucky [The Detroit News]

GM, Toyota Reportedly In Talks on Fuel-Cell Venture [internal]

New York Auto Show: Lexus 450h [internal]