The good oil: Toyota to launch its petrol-electric Camry in Auckland

Toyota launches its petrol-electric Camry sedan in Auckland on Monday - and there is some excitement about the car's fuel economy. Technicians have been running in the hybrid between Toyota's Palmerston North HQ and Taupo. Whisper is it recorded a best of 5.9 litres/100km (48mpg) and a worst of 7.4 litres/100km (38mpg). The Camry uses a 2.4-litre four-cylinder petrol Atkinson Cycle engine and an electric motor fed by a nickel-metal hydride battery pack. The petrol engine delivers 110kW at 6000rpm and 187Nm of torque at 4400rpm. The electric motor can produce 105kW and 270Nm. The Camry Hybrid can travel at low speed in electric-only mode for up to 2km.

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The new-car market in New Zealand is not the only one showing the first real signs of buoyancy after 18 months in the doldrums. Sales across the ditch last month climbed nearly 12 per cent on January 2009, helped by demand for Australian-made large cars. Ford Falcon numbers were up 42.2 per cent, Holden Commodore 5.9 per cent and Toyota Aurion 31.3 per cent. Sales in Britain and Italy rose almost 30 per cent in January. France reported a hike of 14 per cent and Spain 18 per cent. Germany was the exception, where sales were down 4 per cent. Demand has fallen in Germany since the Government ended its scrappage scheme last September.

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Peugeot has unveiled a new sedan dubbed the 408 - but it is not the replacement for the 407. The four-door is based on the long-wheelbase platform of the 308 Touring wagon and is destined for China and other emerging left-hand-drive markets. The car that will soon replace the 407 will almost certainly be badged the 508. Meanwhile, PSA Peugeot Citroen and BMW are to continue joint development of powertrains. Their current project is the "Prince" family of four-cylinder petrol engines designed to meet stringent EU6 emissions standards.

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Christchurch is the latest city to join the Renault-Nissan Alliance programme for the development of electric vehicles. A working group of city councillors, electricity suppliers, and Nissan executives will seek initially to identify areas of co-operation. The Renault-Nissan Alliance has signed with many other cities around the globe. One of its more notable partners is Houston, the oil capital of the US.

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California-based EV company Tesla Motors says it's about to start building right-hand-drive versions of its Lotus Elise-based Roadster. Tesla has so far produced around 1000 leftie versions of the two-door sportscar, each one costing US$109,000 ($156,066). Next up is the Model S sedan, an all-electric four-door due in late 2011 and expected to cost around US$50,000. Tesla says it is the "only company to commercially produce highway-capable electric cars." It has hired former Toyota engineering chief Gilbert Passin to steer its future.

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Toyota president Akio Toyoda finished his apology to the carmaker's customers this week with a deep and proper bow. His message: he is truly sorry for the recalls. The art of apology is an intrinsic part of Japanese culture. If you are the first to leave work in a Japanese office, you say "Osaki ni sitsuree simasu," or "I commit the great rudeness of leaving first."

alastair.sloane@nzherald.co.nz