July 20 th  2002

Hydrogen highway

Source:  Nationwide News Pty Limited

               Toyota has won the contest to put the world's first fuel-cell car on sale and intends to have
               its FCHV-4 -- the Fuel Cell Hybrid Vehicle, built around the Kluger mid-sized four-wheel drive
               -- on the road in Japan and the US before thhe start of 2003.

               It will just pip Honda to the prize, also edging out DaimlerChrysler's Necar project in the dash
               to start real-world fuel-cell motoring. But there is no need to get excited in Australia -- yet.

               There will be only 20 cars in the first batch of FCHV-4s and, despite a strong green
               commitment, which includes early unprofitable sales of the Prius hybrid, Toyota Australia has
               no plans to bring one here.

               "We would like one but there is no plan," says Toyota's top Aussie, John Conomos.

               "We haven't got the sophisticated infrastructure to run an evaluation here.

               "It is part of our strong green policy to always get to the forefront of new technology ... but
               we haven't got the expertise."

               Conomos says there will be plenty of time to try fuel-cell vehicles as Toyota in Japan believes
               a full-scale move towards the new technology will not come before 2010.

               Toyota intends to lease just 10 of the FCHV-4s in Japan, and another 10 in the US, keeping
               close track on their progress in use by energy companies and government bodies.

               It's a similar approach to Toyota Australia's early efforts with the Prius, which was lent or
               leased to governments across the country before genuine customer sales at $ 39,990.

               The two FCHV-4 trial sites were chosen because of the availability of liquid hydrogen, which
               provides the energy for the car's on-board power-generating fuel cell. The system is claimed
               to generate 90kW of power, sufficient to match the city performance of a regular Kluger.

               Toyota has completed 110,000km of testing with its fuel-cell prototypes but says it is still in
               the early stages of development.

               "Public road test of the FCHV-4 have marked one year with great success, convincing us
               that a launch within this year is possible," says Toyota's public affairs manager, Shinya
               Matsumoto.

               "Our decision was also based on our desire to cultivate a social environment that is receptive
               to fuel-cell vehicles.

               "We regard this limited-marketing effort as a first step toward establishing standards and
               infrastructure for the future diffusion of fuel-cell vehicles."

               The FCHV-4's fuel-cell engine is a Toyota development but the company admits it will need
               partner companies to provide the hydrogen refuelling stations which are vital to ongoing
               development. Several are already operating in California, which is why it was chosen for the
               American program, while others are being set up in the Tokyo-Yokohama region in Japan.

               Toyota admits it is already working on the FCHV-5, which is likely to be closer to Corolla size,
               but refuses to discuss the timing or cost of its work.

               "'We cannot comment on issues related to future product planning. Fees have yet to be set,"
               Matsumoto says.

               But Toyota has made a start and is expected to be followed very closely by Honda, which
               has already built electric cars for California and the hybrid Insight sold in Australia for $
               48,900.

               "We are developing clean vehicles as part of our responsibility as a car manufacturer,"
               Matsumoto says.