Toyota Says A123’s Batteries for Prius May Nullify Warranty - Bloomberg.com: Japan

Bloomberg.com: Japan By Alan Ohnsman

April 29 (Bloomberg) — Toyota Motor Corp. said A123Systems’ planned lithium-ion battery packs for the automaker’s Prius to boost the hybrid car’s all-electric driving range may nullify warranties for owners who install them.

A123 said in a statement today that it’s taking orders for the $9,995 L5 battery module to convert a standard Prius into a plug-in hybrid that may get 100 miles per gallon of gasoline when driven in a range of 30 to 40 miles. Initial installations are to start in July, the closely held battery maker said.

“We don’t recommend customers modify our vehicles,” said Bill Kwong, a spokesman for Toyota’s U.S. sales unit in Torrance, California. “It wouldn’t automatically invalidate the warranty, but if they put this in and it fries the electrical system, for example, obviously that would not be covered.”

A123 is offering the Prius conversion packs as it works to develop lithium-ion batteries for General Motors Corp.’s Volt plug-in hybrid and all-electric cars from Norway’s Think Global. Automakers are competing to introduce models such as plug-in hybrids, which can be recharged at home electrical outlets, as U.S. gasoline prices reach record highs.

The current Prius, the best-selling hybrid vehicle, isn’t a plug-in model. Toyota hasn’t tested the A123 devices and can’t confirm any of the Watertown, Massachusetts-based company’s assertions, said John Hanson, a spokesman for the automaker.

A123, partly owned by General Electric Co., said its 180- pound Prius packs, designed to fit into the car’s spare-tire well, have been crash-tested and are being evaluated for sale in California, the biggest hybrid market, by state regulators. Calls to A123 for comment weren’t immediately returned.

To contact the reporter on this story: Alan Ohnsman in Los Angeles at aohnsman@bloomberg.net

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