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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.

How new car shortages may impact your buying experience

If you want further proof that the auto industry is bouncing back, look no further than the empty lots and forecourts of your local dealership. According to a story by The Wall Street Journal, continued high demand for mainstream cars is overtaxing automakers' ability to produce enough models. Several dealers interviewed for the story are reporting two-week supplies as opposed to the typical two-month allocations.
With sales expected to hit 1.4 million units when August numbers arrive shortly and incentive spending down to its lowest amount since January, these limited supplies are pushing prices even higher. For example, according to the WSJ, the average price of a Ford Fusion is up past $26,000. Unfortunately, it's difficult for manufacturers to increase production quickly. If it invests in its facilities, as many manufacturers have done, it risks wasting cash if growth suddenly slows. At the same time, the momentum gained over the past several years could be short lived if vehicle supplies continue to dwindle. "Manufacturers are in a precarious situation," notes Karl Brauer, a senior director at Kelley Blue Book.
Low interest rates and a wealth of desirable features are also allowing customers to purchase more expensive vehicles while justifying their higher overall price tags, a situation that is compounding supply shortages. Even now, during the annual end-of-summer clearance season, deals on new vehicles are remarkably difficult to come by. According to the report, the Toyota Corolla is in a self-inflicted state of shortage, as Toyota clears out inventory in anticipation of the new 2014 generation arriving in dealers. Ford's supplies should rebound as Fusion production comes on line at its Flat Rock, Michigan factory. The Chevrolet Impala, Honda Odyssey, Civic, and Accord and Subaru Forester are also facing shortages.

Junkyard Gem: 2001 Acura MDX

The point of the Junkyard Gems series is to share automotive history, and the period of the middle 1990s through early 2000s is a very interesting one for U.S.-market new vehicles. The SUV revolution went into high gear with the introduction of the 1991 Ford Explorer and 1993 Jeep Grand Cherokee, and sales of sedans, hatchbacks, and minivans began their steady decline. The Detroit companies were in good shape to cash in on the commuter-truck craze, with plenty of additional models ready for a quick slathering of luxury features. Toyota, Mitsubishi, Nissan, and Isuzu were ready as well … but Honda was completely unprepared for the Next Big Thing at that point. With American sales absolutely critical to Honda (which has never held much market share for four-wheeled vehicles in its home country), a deal was made to rebadge the Isuzu Trooper as the Acura SLX and the Isuzu Rodeo as the Honda Passport while an all-Honda big SUV could be developed. That SUV was the Acura MDX, which debuted for the 2001 model year. Here's one of those first-year MDXs, a huge turning point in Honda history, found in a Denver-area self-service boneyard recently. Oh, sure, Honda began selling the CR-V over here in 1997 and so wasn't completely out of the SUV game during the 1990s, but that little Civic-based machine was never going to lure away many Explorer or even Montero shoppers. The MDX was a proper three-row crossover SUV, despite being based on the same platform as the not-so-imposing Accord, and a Honda-badged version (the Pilot) followed two years later. Here's that third row, which looks quite cramped, but so what? MDX sales started out respectable and stayed that way. Every 2001-2013 MDX ever sold here came with a VTEC-equipped V6, automatic transmission, and all-wheel-drive (some later MDXs could be bought with front-wheel-drive). This engine is a 3.5-liter DOHC plant rated at 240 horsepower and 245 pound-feet, decent enough for a truck that tipped the scales at well beyond two tons. The MSRP on this truck was $34,370, which amounts to around $58,260 in inflation-adjusted 2022 dollars. The base '01 Ford Explorer started at just $25,210, but the swankified Eddie Bauer Edition was better-suited to the Acura-shopper demographic and listed at $32,025. You could buy a new Montero XLS and do some serious off-roading for $31,397 that year, but it had warlord-grade ride to go with its warlord-grade abilities in the bundoks.