Boston, MA 02/03/2014 (wallstreetpr) – Toyota Motor Corp (ADR) (NYSE:TM) is betting that the future is in fuel cell cars and is working hard to introduce the yet-to-be-named model in all the state capitals. What does the future hold for the gasoline ones?
The alternate fuel technology, particularly the fuel cell variant got the first boost in 2003 when George Bush, the then President of the United Sates announced a funding of $1.2 billion to develop technology. Even ten years down the line, we are yet to see substantial number of cars on the road. Why are the traditional and very American auto makers not very much into such car races? The reason is very simple. Gasoline cars can be filled up at the numerous gas stations. These are built, managed and run by various firms, none of them connected to the auto makers. Talk of the alternate fuel technology and we have to talk of the infrastructure. Building such a vast infrastructure needs money and money follows business. So the classic catch 22 situation is what will come first, the car or the fuelling station.
Hydrogen fuel cells have many advantages; they are zero pollution, water, the key ingredient to manufacture it, is abundantly available – in fact 70% of the earth is covered by it and the process is so simple, it can be done in any backyard. Toyota Motor Corp (ADR) (NYSE:TM) is taking the bull by the horns and it is being supported by states like California. It is estimated that just 68 hydrogen fuel stations are needed here and they are putting in more than $200 million to do just that.
What about the others?
Tesla Motor Inc (NASDAQ:TSLA) is already way ahead; after a very successful year in the U.S., it has launched in Europe and is now looking at China. But if we look at the figures, we realize the real difference. Tesla may make more noise and get a good press, but it still managed to sell only 6,900 units in the last quarter. Compare that with Ford Motor Company (NYSE:F) or even General Motors Company (NYSE:GM), they must be selling this many cars in a province in a quarter.
But, the future is out there, only if the Tesla’s of today can stand up for the next 5-10 years and build up the infrastructure slowly and steadily.
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