EDIT
Q: Why was Toyota first to bring mass-produced hybrids to market?
A: It all started about the time there was talk of much stricter emissions regulations in California back in the early 1990s. But
the G21 project was about much more than that. It was about developing an all new vehicle package -- a midsize compact for many markets globally, not just the U.S. Of course, the stricter environmental regulations in the U.S. were a big incentive to go ahead with the project.
We didn't think about hybrids at first because the initial goal was a 50% improvement , but once our top executives made it clear they wanted much more than that, it became apparent that only a hybrid could achieve that type of target. At the time, the majority of our efforts and those of Detroit had been focused on electric vehicles. But we had hit a wall with electric vehicles . Hybrids began where EVs ended.
Q: Back then, how confident were you of success producing a mass-market hybrid?
A: All of the senior engineers had doubts about the program, including myself. We didn't think there was zero chance of success in meeting the goals outlined for us, but the feeling was that it was somewhere less than a 5% probability of succeeding. We didn't have any blueprints to follow. Feasibility studies and a lot of fundamental research were clearly needed, but instead we were told to jump right into mass production of a vehicle for consumers. There were no existing studies, and yet we were given a two-year deadline for completing a car. Is it any wonder we doubted?
Q: What was the hardest part involved in bringing a hybrid to life?
A: The chief challenge involved cracking a lot of tough system-integration riddles. And the size and shape of a car is fairly limited so new ways had to be found to cram a lot of equipment into a small package. Then there were safety issues involving the addition of an all-new energy source to the engine compartment in the form of the high-voltage battery. Managing the energy flow was a major issue. How to do that safely -- and in a shape that wouldn't freak out customers -- required an advanced computer control system. We did a lot of that in the course of developing the Prius with computer simulations. "
EDIT
http://www.businessweek.com/magazine/content/05_25/b3938028.htm