Wednesday, September 14, 2005

WSJ.com - Toyota Official Plays Down Prospects for Fuel-Cell Cars

WSJ.com - Toyota Official Plays Down Prospects for Fuel-Cell Cars

By JOSEPH B. WHITE
Staff Reporter of THE WALL STREET JOURNAL
September 13, 2005 11:48 a.m.

FRANKFURT -- Toyota President Katsuaki Watanabe said hybrid vehicle-propulsion technology is likely to be an important alternative to internal combustion engines for "a long time," because the technology to run vehicles on hydrogen fuel cells seems unlikely to be ready for mass-market use soon.

"Several years ago it was said fuel-cell vehicles would emerge by 2010," Mr. Watanabe told a group of reporters on the sidelines of the Frankfurt Auto Show. But now, Mr. Watanabe said, engineers tell him they don't see commercially viable fuel-cell vehicles by 2010, in part because of problems developing a hydrogen fueling infrastructure. "At this point in time it defies prediction," he said. Mr. Watanabe took questions in English, and replied in Japanese through a translator.

Toyota Motor Corp. has been one of the leaders in pushing hybrid gas-electric vehicle propulsion systems. In contrast, European and U.S. based auto makers initially expressed little enthusiasm for hybrid cars, complaining they were costly and often delivered a smaller fuel economy savings than advertised. But the recent run-up in the price of oil has stoked consumer interest in gas-electric hybrids, and now Toyota's rivals are scrambling to catch up. Earlier this week, General Motors Corp., DaimlerChrysler AG and BMW AG announced a partnership to develop hybrid technology. Volkswagen AG and Porsche AG also announced a hybrid collaboration.

"Hybrid is a core technology," Mr. Watanabe said. "Hybrids could be used with gasoline engines or diesel, or they could be used with a fuel cell." He said the industry has "room for standardizing hybrid technology" among manufacturers. "But it is a bit too premature."

Mr. Watanabe said Toyota isn't currently planning to field a hybrid diesel-electric vehicle, because the technology is too costly. Diesel engines are popular in Europe, and European auto makers argue that advanced diesel engines can burn less fuel than a hybrid gas-electric vehicle.

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