Toyota redesigned the Tundra pickup after complaints that the previous generation truck was too small compared to other domestic models. However, the 2007 Tundra may be too big for the market, especially with high fuel prices. Now, Toyota plans to introduce E85 flexible-fuel vehicles in North America, starting with the Tundra pickup truck, as early as 2008.

The 2008 Tundra will be based on the flex-fuel technology used in the upcoming flex-fuel Corolla for the Brazilian market. The Corolla, which is expected to hit Brazil in spring of 2007, can run on 100-percent ethanol or any combination of gasoline and ethanol.

The 2008 Tundra will be the first E85-capable Toyota in the U.S. market. It will be built either in the Princeton, Indiana plant that has been producing Tundras for several years or at the new San Antonio, Texas plant that is opening this month. Toyota is also considering rolling out a gasoline-electric hybrid version of the Tundra in North America around 2010, according to the Japanese business news site Nikkei Net Interactive.

To read more about flex fuel, click here.