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Toyota announces production increase for Mirai fuel cell vehicle

Toyota is building them. People are coming. So Toyota's going to build some more. Cue the strings. The Japanese automaker apparently got more than it bargained for after starting sales of its first mass-produced hydrogen fuel-cell vehicle last month. On Thursday, Toyota announced plans to ramp up production starting next year. Toyota will build 700 Mirai units this year, and will then bump that to 2,000 vehicles next year and 3,000 in 2017. The previous production plan had the same numbers, except for what would happen in 2017. The increase is coming because Toyota's already received pre-orders for 1,500 Mirai vehicles. With US and European sales slated to start later this year, Toyota didn't want to leave itself short-stocked. Toyota confirmed what was already being surmised last month by the Japanese newspaper Nikkei, which said that Toyota was ready to spend almost $170 million boosting production capacity of the Mirai. Most of this year's sales will be in Japan, with the US and Europe gradually accounting for a larger chunk starting next year. In November, the automaker disclosed details of the Mirai's initial US sales, saying that the model will be available in California this year for either a base price of $57,500 or a lease price of $499 a month for 36 months (with $3,649 due at signing). And if that sounds steep, remember that the hydrogen refueling, wherever it can be found, is free for as long as three years. Check out Toyota's press release on the bumps in production below. Toyota to Increase 'Mirai' Production Toyota City, Japan, January 22, 2015-Toyota Motor Corporation today announced that it will increase production of the "Mirai" fuel cell sedan, which launched in Japan on December 15, 2014. The new plan calls for production to increase from the 2015 level of 700 units to approximately 2,000 units in 2016 and approximately 3,000 units in 2017. Considering the approximately 1,500 orders received in the first month of sales in Japan, and the upcoming launches in Europe and the United States later this year, it was decided that the supply structure should be adjusted to reflect the level of demand for the vehicle. Sales plans for Japan, the U.S. and Europe following the production increases will be formulated taking into consideration each region's level of hydrogen infrastructure development, energy policies, car-purchasing subsidies, consumer demand, environmental regulations, and other factors.

Japan could consolidate to three automakers by 2020

Sergio Marchionne might see his dream of big mergers in the auto industry become a reality, and an analyst thinks Japan is a likely place for consolidation to happen. Takaki Nakanishi from Jefferies Group LLC tells Bloomberg the country's car market could combine to just three or fewer major players by 2020, from seven today. "To have one or two carmakers in a country is not only natural, but also helpful to their competitiveness," Nakanishi told Bloomberg. "Japan has just too many and the resources have been too spread out. It's a natural trend to consolidate and reduce some of the wasted resources." Nakanishi's argument echoes Marchionne's reasons to push for a merger between FCA and General Motors. Automakers spend billions on research and development, but their competitors also invest money to create the same solutions. Consolidating could conceivably put that R&D money into new avenues. "In today's global marketplace, it is increasingly difficult for automakers to compete in lower volume segments like sports cars, hydrogen fuel cells, or electrified vehicles on their own," Ed Kim, vice president of Industry Analysis at AutoPacific, told Autoblog. Even without mergers, these are the areas where Japanese automakers already have partners for development. Kim cited examples like Toyota and Subaru's work on the BRZ and FR-S and its collaboration with BMW on a forthcoming sports car. Honda and GM have also reportedly deepened their cooperation on green car tech. After Toyota's recent buyout of previous partner Daihatsu, Nakanishi agrees with rumors that the automotive giant could next pursue Suzuki. He sees them like a courting couple. "For Suzuki, it's like they're just starting to exchange diaries and have yet to hold hands. When Toyota's starts to hold 5 percent of Suzuki's shares, this will be like finally touching fingertips," Nakanishi told Bloomberg. "I absolutely do believe that we are not finished seeing consolidation in Japan," Kim told Autoblog. Rising development costs to meet tougher emissions regulations make it hard for minor players in the market to remain competitive. "The smaller automakers like Suzuki, Mazda, and Mitsubishi are challenged to make it on their own in the global marketplace. Consolidation for them may be inevitable." Related Video:

China sticking to its guns on EVs for the future

Automakers are obviously free to develop whatever next-gen, zero-emissions tech that they want. However, if a company wants to get on the good side of the Chinese government, that strategy better include some plug-in vehicles. The authorities there are lending major support to plug-ins at the moment, and its forcing the auto industry to play along. According to Bloomberg, Toyota, Volkswagen, Hyundai, and BMW are all launching dedicated EV brands with their joint venture partners, and as many as 40 electric models could hit the Chinese market this year alone. However, analysts don't think the vehicles are going to sell well. Instead, the launches are essentially a way for companies to play nice with the government and help get the approval to build factories in the country. Take Toyota as an example. The company is pushing the future of hydrogen hard with promotional films for the Mirai and engineers talking down fast-charging EVs. Still, the Japanese automaker is getting ready to launch two EV brands in China with its joint venture partners, according to Bloomberg. China's push for alternative fuels has been happening for a while, but it really kicked into high gear last year. The government has set a goal to improve fleet-wide economy by 40 percent by the end of the decade in order to spend less importing oil and for the population's health. The plan has shown some success so far with hybrid and EV sales growing early in 2015. Related Video: News Source: BloombergImage Credit: Kin Cheung / AP Photo Government/Legal Green BMW Hyundai Toyota Volkswagen Green Culture Technology Electric tax incentives chinese government