Honda Motor Co. is backing hydrogen power for the cars of the future, waving aside a decision by the Obama administration to drop the so-called fuel-cell technology in favor of battery-run vehicles.
"Fuel-cell cars will become necessary," said Takashi Moriya, head of Honda's group developing the technology. "We're positioning it as the ultimate zero-emission car."
Honda, the only carmaker to lease hydrogen-powered autos to individuals, opened a production line last year in Tochigi prefecture to make 200 fuel-cell FCX Clarity sedans, the model being leased in a trial in Los Angeles. The Obama administration sought to eliminate hydrogen-station funding and instead lend $1.6 billion to Nissan Motor Co. and $465 million to Tesla Motors Inc. to make electric cars, and give $2.4 billion in grants to lithium-ion battery makers.
"Honda has a propensity to think very long term," said Ed Kim, an analyst at AutoPacific Inc. in Tustin, California. "It's also part of the company culture that if they've made a decision they think is correct, they'll really stick with it."
Honda is not alone. Toyota Motor Corp., Daimler AG, General Motors Corp. and Hyundai Motor Co. say hydrogen, the universe's most abundant element, is among the few options to replace oil as a low-carbon transportation fuel.
U.S. Energy Secretary Steven Chu said in May his department would "be moving away" from hydrogen as it's unlikely the U.S. can convert to the fuel even after 20 years. Nissan Chief Executive Carlos Ghosn predicts electric vehicles may grab 10 percent of global auto sales by 2020. Honda hasn't announced plans for a battery-powered car.
