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Why Toyota's fuel cell play is one big green gamble

Imagine going to the ballet on Saturday evening for an 8 pm performance. The orchestra begins warming up shortly before the show, but it turns out the star performer isn't ready at the appointed time. The orchestra keeps playing, doing its best to keep the audience engaged and, most importantly, in the building. It keeps this up until the star finally shows and is ready to dance ... which turns out to be ten years later. That's a Samuel Beckett play. It's also how many observers, analysts, alt-fuel fans and alt-fuel intenders feel about the arrival of hydrogen fuel cell vehicles (FCVs) – the few of them who are still in the building, that is. Toyota's hydrogen development timeline rivals that of the US space program. In fact, within the halls of Toyota alone, research on FCVs has been going on for nearly 22 years, meaning that one company's development timeline for FCVs rivals that of the US space program – it was 1945 when Werner von Braun's team began re-assembling Germany's World War II V2 rockets and figuring out how to launch them into space and it wasn't until 1969 when a man set landing gear down on that sunlit lunar quarry. The development of the atom bomb only took half as long, and that's if we go all the way back to when Leo Szilard patented the mere idea of it, in 1934. Carmakers didn't give up on hydrogen in spite of the public having given up on carmakers ever making something of it, so there was a good chance that hydrogen criers announcing the mass-market adoption of periodic chart element number two one would eventually be right. Now is that time. And Toyota, not alone in researching FCVs but arguably having done the most to keep FCVs in the news, isn't even going to be first to market. That honor will go to Hyundai, surprising just about everyone at the LA Auto Show with news of a hydrogen fuel cell Tucson going on sale in the spring. The other bit of thunder stolen: while Toyota's talking about trying to get the price of its offering down to something between $50,000 and $100,000, Hyundai is pitching its date with the future at a lease price of $499 per month ($250 more than the lease price of a conventional Tucson), free hydrogen and maintenance, and availability at Enterprise Rent-A-Car if you just want to try it out. We've seen and driven Toyota's offering and we all know its success doesn't depend on cross-shopping, showroom dealing and lease sweeteners.

Toyota, Suzuki partner on hybrids, EVs, building cars for each other

NAGOYA, Japan — Toyota and Suzuki on Wednesday said they planned to produce electric vehicles and compact cars for each other to better compete with fast-changing technologies in the global auto industry. The agreement follows an initial R&D tie-up announced by Japan's No. 1 and No. 4 automakers in 2017, and will see more vehicles produced by Suzuki for Toyota, one of the world's biggest carmakers. Although Suzuki is far smaller, it is a dominant force in the fast-growing Indian market. The two automakers have been pooling their strengths. Toyota is a leader in hybrid technology and is investing heavily in automated driving, while Suzuki specializes in affordable compact cars — as many automakers struggle to keep pace with ballooning investment in EVs and self-driving cars. Under the latest agreement, Suzuki will source gasoline hybrid systems for cars it sells worldwide from Toyota, which pioneered hybrid vehicles with the Prius more than 20 years ago, the companies said in a joint statement. In return, Suzuki will produce two compact models for Toyota in India based on its Ciaz and Ertiga models. Further cooperation with Suzuki will help Toyota expand its presence in India, the world's fifth-largest passenger car market where it has struggled to grow sales due to lean demand for its lower-cost models. The deepening partnership between the two automakers will enable cost-conscious Suzuki to tap into Toyota's R&D firepower to develop lower-emission vehicles and self-driving cars — areas which Suzuki has admitted it is struggling to keep up. "We believe that the expansion of our business partnership with Suzuki ... will help give us the competitive edge we will need to survive this once-in-a-century period of profound transformation," Toyota President Akio Toyoda said in a statement. The two automakers will deepen their cooperation in India, where Suzuki's hybrid vehicles will be made using engines and batteries locally produced by Toyota. They will also join forces in Europe, where Toyota will produce electric vehicles based on its RAV4 SUV crossover and Corolla wagon for Suzuki, while Suzuki will supply Toyota with gasoline engines for compact vehicle models sold in the region. Suzuki will also produce its Baleno, Vitara Brezza, Ciaz, and Ertiga models for Toyota which will be rebranded and renamed as Toyota models for the African market.

Toyota investing $200M in Southern manufacturing

Over the past two years, Toyota has invested more than $2 billion at its North American production facilities, and it apparently doesn't plan on stopping there. To keep up with recent strong sales, Toyota is investing an additional $200 million at its engine plants in the Southern US to increase production capacity of its V6 engines.
The bulk of this money ($150 million) will go to expand Toyota's engine plant in Huntsville, AL, which is currently responsible for supplying engines - four-cylinder, V6 and V8 - to eight of Toyota's 12 domestically produced vehicles. That includes the best-selling Toyota Camry (shown above).
Toyota didn't say exactly what improvements are being made to the plant, but this follows last year's $80 million investment in the plant that is set to be completed by next year raising the engine capacity to 750,000 annual units including 362,000 V6s. The remaining $50 million will go to the casting plants of Toyota-owned Bodine Aluminum in Missouri and Tennessee, which supply engine blocks and cylinder heads to the Huntsville engine plant as well as others in Kentucky and West Virginia. Scroll down below for the official press release.