Nissan Undercuts Toyota and Honda with '07 Altima Hybrid Pricing

NASHVILLE — In what may be the start of a price war among Japanese hybrid sedans, Nissan on Tuesday announced pricing on its new 2007 Altima Hybrid. The base price of the Nissan hybrid is significantly below the cost of the Honda Accord and Toyota Camry hybrids.

Nissan threw down the pricing gauntlet when it announced its first entry into the hybrid-electric vehicle market will start at $25,015, including a $615 destination charge. In comparison, the 2007 Toyota Camry Hybrid starts at $26,820, including a $620 destination charge, which makes it $1,805 more than the Altima Hybrid. The 2007 Honda Accord Hybrid has a base price of $31,685, including $595 for destination. That's $6,670 more than the Altima Hybrid's base price, but the Accord Hybrid offers nearly all features as standard with the exception of a DVD navigation system.

The Altima Hybrid comes in one model with three available option packages. A convenience package adds $1,300 to the price, a connection package with Sirius or XM Satellite Radio adds $5,250 and a technology package adds $7,250.

The Altima Hybrid uses a 2.5-liter four-cylinder engine and an electric motor mated to a continuously variable transmission. The Altima Hybrid's fuel economy is estimated at 42 mpg in the city and 36 mpg on the highway, Nissan said. Standard equipment includes 16-inch alloy wheels, power windows and locks, a six-speaker AM/FM/CD player, antilock brakes, vehicle dynamic control, traction control and dual-zone automatic temperature control.

The Altima is on sale now. Nissan plans to sell the Altima Hybrid in only eight states: California, Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island and Vermont.