Japanese Carmakers Hint at More of an Emission-Free Future

Toyota and Honda favor hydrogen fuel cells, while Nissan exhibits a prototype that could be basis for next-generation Leaf.
By Doron Levin ,

TOKYO (TheStreet) -- Japan's three top automakers unveiled Wednesday in Tokyo prototypes of emission-free vehicles that show the technological direction each is taking over the next few years to comply with tightening regulatory standards, especially in the U.S. 

Toyota's (TM) - Get Report LF-FC concept from Lexus is powered by hydrogen fuel cells and has an exterior design that hints at a future large luxury sedan, the brand's flagship. The car would be powered by three electric motors, one in the rear and two in front, similar to Toyota's Mirai fuel cell sedan. 

Like Toyota, Honda (HMC) - Get Report is leaning toward hydrogen with its FCX Clarity fuel-cell sedan, a beefed-up version of the experimental version that's been around since 2008. Honda will sell only 200 FCX Clarity to government and corporate fleets starting in March, which will cost $63,000 but qualify for a substantial government subsidy to encourage fuel cells. 

Nissan (NSANY) , the industry's strongest champion of battery-powered electrics, introduced IDS Concept, which analysts and company officials suggested is the basis for a new generation of Nissan's Leaf electric vehicle, which has sold more than 200,000 globally. The next generation will include advanced autonomous features, allowing the driver to cede some control, such as in slow, heavy traffic. 

Leaf sales generally haven't met early projections, in part because gasoline prices have fallen sharply in the U.S., the car's most important market. Like IDS Concept, the next-generation Leaf is expected to have a much longer range than the current 100 miles thanks to a larger 60-kilowatt battery. 

Though Japan's hydrogen infrastructure is miniscule, the country's government has been pushing automakers to develop technologies that serve to limit oil imports. Batteries have an advantage in that they can be recharged by customers whose garages or parking spaces have access to an electric outlet. 

"We don't expect the government subsidies (for fuel cells) to continue forever," Kiyoshi Shimizu, Honda's chief engineer, told Bloomberg. "Our aim is to by 2020, even if the subsidies run out, we can still sell the car at a price comparable to what they can buy the car now with subsidies." 

Japan helped to subsidize the development of gas-electric hybrids in the 1990s, helping Toyota and Honda to become the top producers of the technology. 

California's Air Resources Board has been preparing automakers for rules that will require them to sell a percentage of zero-emission vehicles such as battery-powered electrics and hydrogen fuel cells in order to do business in the state. 

Toyota's Mirai, already on the market, has gained a head start on the next generation Honda FCX Clarity. With the two automakers pushing the hydrogen-based technology, they also are likely to be more active encouraging development of hydrogen production and distribution infrastructure. 

Honda said it will consider "package deals" of a portable hydrogen filling station for every 20 to 30 fuel cell vehicles sold to a fleet customer.

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Doron Levin is the host of "In the Driver Seat," broadcast on SiriusXM Insight 121, Saturday at noon, encore at 9 a.m. Sunday.

The writer has no financial interest in the aforementioned companies.

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