The Altima does carry a 2.5-liter engine versus the Camry’s 2.4-liter version, but the relative difference in performance between the vehicles is mostly a product of software. Nissan engineers inherited Toyota's computer control system, but didn't leave it entirely alone. Toyota opted for calm and comfort, the signature qualities of the Camry, while Nissan allowed a little more noise and rumble in exchange for more power in passing. The Altima Hybrid’s fuel tank, at 20 gallons, is almost three gallons larger than the Camry, boosting the driving range another 100 miles or so. I spent one week driving the Altima hybrid and meeting with Camry hybrid owners to study the differences between the two vehicles.

Power & Style: There’s no doubt about it. The Altima Hybrid is noticeably more responsive than the Camry Hybrid. If the extra pep is essential to you, and you’re willing to sacrifice the ultra-quiet (some may call it “numb”) ride of the Camry, then your decision is made. The racier profile is evident in the exterior styling of the Altima. Sure, it’s a family sedan, but being a parent doesn’t mean your life is over.

Interior Quality and Room: After jumping back and forth between the seats of the Camry and Altima, you definitely feel that the Camry has more space and a generally more pleasant feel. The high degree of finish on the materials of the Camry makes it seem like Nissan didn't spend as much money or care on the Altima interior. Nissan tried to spruce everything up to give it an edgy sportier feel, but I think that would wear off after a number of months. The Altima simply doesn’t feel as well put-together, although it may have a slight edge in terms of visibility.

Instrumentation: Half the fun of driving a hybrid is monitoring the fuel efficiency and flow of energy. Toyota’s been in the hybrid game for nearly a decade, and benefits from its experience in producing hybrid instrumentation. The Altima’s dashboard, on the other hand, made reading the mpg a guessing game. Instead of delivering an exact number, the fuel efficiency showed up on a display graph. Overall, the Altima’s interfaces were not clear and the ergonomics were less than ideal. This is where the Toyota brand, characterized by simplicity, clarity and safe choices, came shining through.

The one exception, and it’s an important one, is the Altima’s backup camera. The Altima’s use of overlay guidelines to show distance from the car and likely distance from the curb beats out the Prius. The Camry lacks the backup camera entirely. That’s a must for Toyota to fix on the next release.

The Altima Hybrid’s retail price is competitive at $24,400—about $1,500 less than the Camry. When you add another $2,350 offered to Altima buyers in the form of the federal hybrid tax credit, then the difference in price between the two vehicles approaches four grand. Nissan hybrids will benefit from the full amount of the tax credit for several years, while the tax credit for Toyota hybrids were sliced in half a few months ago. Within a year, the Toyota credit will be reduced to zero—thanks to an odd provision in the 2005 Energy Bill.

Legislative technicalities are, in fact, the raison d’etre for the Nissan Altima Hybrid. Nissan was practically forced into the hybrid game in order to comply with stricter emissions standards in California and the other seven states which have observe California rules. (Let’s not forget the eco-benefits of hybrid technology.) If it weren’t for their need to reduce their corporate emissions profile, Nissan might have dragged their heels even longer on hybrids. As it stands, it took the company five years between announcing the Altima hybrid in 2002 and actually bringing it out in 2007.

But it’s finally here, and there’s good reason to celebrate the availability of a sporty hybrid family sedan. If enough customers go for the Altima Hybrid, it might encourage Nissan to deliver on its promise to release a compact hybrid model—using its own technology—by 2010.