Toyota BeginsLeasing Fuel-Cell Cars In December

TOKYO, Nov 18, 2002; Reuters reports that Toyota said it had become the first automaker to win government approval to market fuel-cell passenger cars, touted as the eventual answer to most of the environmental concerns caused by conventional vehicles. Due to the high cost of the cars, the vehicles will be leased at a cost of 1.2 million yen ($9,970) a month under a 30-month contract. They will be made available to government bodies, research institutions and energy-related companies.

As announced in July, the world's third-largest automaker said it would lease 20 "Toyota FCHV" cars in Japan and the United States during the 12 months from December 2, starting with one vehicle each to four Japanese ministries by this year.

Fuel cells use an electrochemical process to create electricity by mixing hydrogen with oxygen, emitting only heat and water as by-products.

But hydrogen in its natural gaseous state is difficult to store and distribute, so fuel cell vehicles for the ordinary consumer are not seen as likely for at least a decade.

German-U.S. automaker DaimlerChrysler AG was the first to bring to market a limited series of fuel cell buses in 2000, while Toyota's domestic rival Honda Motor Co is expecting government approval for it to begin marketing its fuel cell vehicle next month, probably on the same day as Toyota.

The Japanese government is keen to encourage the development of fuel cell vehicles, having set a goal of 50,000 on the road in Japan by 2010.