Nikkei. Toyota Motor Corp. will introduce a start-to-finish manufacturing system for midsize hybrid vehicles at a Kyushu subsidiary.

Toyota Motor Kyushu Inc. is already an integrated producer of certain Lexus models and other large vehicles, mainly for export to North America. But for the SAI and HS250h hybrids, it currently uses engines made and shipped from its parent’s Kamigo plant.

…Toyota will invest some 1 billion yen [US$11.7 million] to retool an idle engine assembly line at the subsidiary’s Kanda plant. By the middle of 2012, the overhauled line will take over the assembly of 2.4- and 1.8-liter engines for hybrid cars currently handled at the Kamigo facility. The capacity of the new line is expected to be around 150,000 engines a year.

Toyota also plans to implement an integrated production model for hybrids at a factory in the Tohoku region starting late next year, according to the report.