At the time, rumors circulated that the Altima hybrid would be revived in a few years with a Nissan-designed powertrain and battery configuration capable of bringing down production and licensing costs for the car.

This week, Nissan confirmed those rumors, announcing at a press briefing in Tokyo that it would be bringing the Altima hybrid back for 2014 with an all-new gas engine, electric motor, and continuously variable transmission (CVT.) Appropriately, the standard Altima will be getting a redesign and a new engine in the 2013 model year, with its new CVT bringing about a 10-percent more efficient performance on its own.

The 2014 hybrid will pair a new, more efficient 2.5-liter supercharged four-cylinder engine with a single-motor electric configuration. In the original Altima hybrid, Nissan utilized Toyota’s dual-motor Hybrid Synergy Drive, paired with a 2.5-liter gas engine to produce a total of up to 198 horsepower. This time around, the combined gas-electric output of the Altima hybrid is expected to reach about 270 horsepower.

Though no word as yet been given on price or fuel economy, expect the car to be more cost-competitive than its predecessor, and achieve a combined efficiency in the 40-mpg-plus ballpark.

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According to a report in AutoNews, Nissan still sees the wisdom in selling the model, and is planning to reintroduce the Altima Hybrid as early as next year. This time around though, the carmaker won’t have to pay Toyota a license fee for its hybrid system.

Reportedly, the revamped Altima Hybrid will feature a front-wheel drive version of the gas-electric powertrain Nissan recently debuted in the Infiniti M Hybrid. Nissan developed its hybrid system in-house this time though, with plans to slot it into several new or existing models in the coming years. If the Altima indeed becomes one of those models, it will likely accompany a fifth-generation redesign of the car, which last received a full retooling in 2007.

Nissan’s new proprietary hybrid system is built around 1.3-kWh lithium ion battery. In the M Hybrid, that battery is housed underneath the floorboard and teamed with a 360-volt motor rated at 67 hp and 199 lbs.-ft. of torque. Both gasoline and electric power are routed through the the rear-wheels in that car, but the system would be reconfigured for front-wheel drive in new Altima Hybrid.

Since Nissan produces the current iteration of the car at its Smyrna, Tenn. facilities (which will soon be home to the carmaker’s brand new $1.6 billion lithium-ion battery plant,) it would make sense that both the vehicle itself and it’s battery could be manufactured in the United States.

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During its five-year tenure as Nissan’s lone gas-electric, the Altima Hybrid may not have approached the sales numbers of competitors like the Toyota Camry Hybrid, but it generally received a mildly positive reception from critics. At 198 combined horsepower, the car was said to be more powerful and fun to drive than the Camry—if a little rough around the edges. The interplay between the electric motor and gas engine made its presence known a bit more than in other hybrids, but the trade-off was 11 more horsepower than the Camry Hybrid and 23 more than the standard four cylinder non-hybrid Altima.

Marrying Nissan’s best selling platform with gas-electric technology licensed from Toyota, the Altima Hybrid has been called “the neglected middle child” in the carmaker’s efforts to become the world leader in fuel efficiency. For Nissan that has meant a multibillion-dollar commitment to becoming the world leader in plug-in electric vehicles like the Nissan LEAF. In the meantime, hybrids seemed to fall by the wayside—though that may not be the case for long, as the carmaker recently debuted its very own lithium-ion-based hybrid technology in the 2012 Infiniti M Hybrid.

Nissan says that the M Hybrid’s gas-electric powertrain will find its way into other vehicles “where it makes sense.” Given the Altima’s status as Nissan’s leading model—and the fact that the carmaker’s new North American lithium ion battery facility will sit just a few hundred yards from where the Altima is manufactured—there is speculation that a retooled Altima Hybrid may yet be in the works.

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While many carmakers spent the better part of the last decade playing catch-up in the hybrid market, Nissan was content with the limited release of just one hybrid—which was itself nothing more than the marriage of the company’s best selling model and the Toyota Camry’s hybrid system. Why the ambivalence about hybrids? Nissan had bigger fish to fry, namely the introduction of the Leaf all-electric vehicle that began arriving to customers in December.

The neglected “middle child” in Nissan’s push toward fuel efficiency is the Altima Hybrid. First introduced in 2007, the Altima Hybrid has only ever been available in nine states: California, Oregon, Connecticut, Maine, Massachusetts, New Jersey, New York, Rhode Island or Vermont. (This helps Nissan meet stricter emissions standards in these states, all of which follow California tailpipe regulations.)

The limited release is a bit of a shame because the Altima is actually one of the better looking, better performing hybrids in its price range—there is an attractiveness to this car that might appeal to buyers who are intrigued by fuel savings but wouldn’t be caught dead in a Prius or Insight.

After a slight exterior makeover and interior refresh for 2010, the 2011 Nissan Altima Hybrid is unchanged.

Under the hood, the Altima Hybrid is essentially a Toyota hybrid wrapped in Nissan’s attractive packaging. The carmaker licensed Toyota’s hybrid technology, made a few key adjustments, and transplanted the hybrid system and drivability into its own product. Those adjustments are actually pretty noticeable in the computer control system. Where Toyota opts for calm and comfort, the signature qualities of the Camry, Nissan allows a little more noise and rumble in exchange for more power in passing.

The Altima carries a 2.5-liter engine that provides 158 horsepower and an electric motor capable of providing an extra 40 horses, for a total of 198 horsepower—that’s 23 more ponies than a standard four cylinder non-hybrid Altima and 11 more than the Camry Hybrid. The Altima Hybrid’s fuel tank, at 20 gallons, is three gallons larger than the Camry’s, boosting the driving range another 100 miles or so.

When it comes to performance, most auto critics give thumbs up to the Altima Hybrid’s satisfying power delivery. Car and Driver had high praise for the car: “Whether we’re comparing conventionally powered versions or hybrids in this class of family four-doors, the Altima always anchors the zesty end of the range, eager, quick, and rowdy. This hybrid really specializes in test-track numbers.”

The Altima Hybrid is also noticeably more responsive than the Camry Hybrid, though its taut suspension is not as smooth. “Although the suspension is decidedly sporty for this class, it also crashes over potholes, expansion joints, and broken surfaces in general,” says Automobile Magazine. Some drivers will cherish a little extra pep and are more than willing to forgo the ultra-quiet (some may call it “numb”) ride of the Camry.

The overall effect is a greater sense of power and luxury when compared with the staid and sedate Camry Hybrid. If you want a little edge to your hybrid but don’t live in one of the nine states where the Altima is sold, you might want to check out the 2011 Ford Fusion Hybrid—many reviewers prefer it’s styling to the Altima’s.

When it comes to fuel economy, the Altima Hybrid is on par with the Camry. It has an EPA-estimated 33/33 mpg city/highway versus the Camry’s 31/35 mpg. However, both pale in comparison to the Ford Fusion’s 41/36 mpg city/highway and the Toyota Prius’s 51/48 mpg city/highway.

Exterior

In the world of practical family sedans, the Nissan Altima is set apart by a sportier and more stylish edge. The finer points of the design are its body creases, wide hips, tapered roofline, T-shaped front grille, and indented wheel-well arches.

Just a few small changes to the new Altima Hybrid’s styling have paid big dividends in terms of the overall attractiveness of the car. “Although the visual changes to the [2011] Altima Sedan focus on minor revisions to the hood, headlights and front fascia, the new car looks especially sharp,” says Road and Track, “particularly when parked next to a 2009 model, which now looks almost plain.” And US News commented, “Nissan has added flair to the Altima’s sheetmetal, with a new, more dramatic look. A prominent “power bulge” and deep ridges carved into the sides of the hood give it a bolder look.”

Ultimately, Nissan has produced a nice mid-size hybrid that compares pretty favorably with many of its competitors but was never actually intended to compete.

Interior

Earlier Altima models were widely criticized for an interior that seemed cheap and thrown together. Nissan made significant improvements for 2010 though, deploying a better selection of materials that are softer and more befitting a car in the Altima Hybrid’s price range. The gauges have also been updated slightly, quelling complaints that the old ones were somewhat difficult to read. Road and Track was favorably impressed with the inside of the Altima, saying, “The biggest improvements are inside, where revised fabrics and materials give the look and feel of quality.”

The car’s onboard technology also received an upgrade but you won’t really notice it unless you spring for the optional music and navigation systems. These systems feature a 6.5-inch VGA color display and a 9.6GB hard drive for music storage, borrowing heavily from a similar configuration used by Infiniti, Nissan’s upmarket label.

Nissan has never had much interest in being a major player in the hybrid market and as a result never developed a hybrid instrumentation system that is as fun and easy to use as Toyota or Ford’s. Their attempt at this feature is only offered when adding the navigation system, and it is only available in a pricey add-on package. And even then, there are no green leaves to reward drivers who excel when it comes to fuel economy.

Perhaps the biggest drawback of the Altima’s hybrid version is the diminished cargo space, which is shrunk from 15.3-cubic feet of trunk space to 10.1 cubic-feet—with no pass-through or 60/40 rear-seat split—all to make room for the hybrid batteries.

Economics

The 2011 Altima Hybrid sedan is available in just one trim level starting at $26,800. That’s just a couple hundred dollars more than the Camry Hybrid and a significant $2,000 more than the Fusion Hybrid. But the way Nissan bundles its option packages—Convenience, Premium and Technology—with each package requiring the purchase of the preceding one, the Altima approaches $35,000.

Buyers who live in the nines states where the Altima Hybrid is sold are lucky to have an additional choice. It’s a roomy mid-size car with comfortable seats that has some moxie yet, delivers the fuel economy of a Camry Hybrid.

Prices are Manufacturer Suggested Retail Price (MSRP) at time of publication and do not include destination charges, taxes or licensing.

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