This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/7456141.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 0 Version 1
Honda makes first hydrogen cars Honda makes first hydrogen cars
(about 2 hours later)
The Japanese car manufacturer Honda has begun the first ever commercial production of a hydrogen fuel-cell powered vehicle. Japanese car manufacturer Honda has begun the first commercial production of a zero-emission, hydrogen fuel-cell powered vehicle.
The medium-sized four-seater, called the FCX Clarity, runs on hydrogen and electricity, emitting only water vapour. The four-seater, called FCX Clarity, runs on hydrogen and electricity, emitting only water vapour.
Honda claims the vehicle offers three times better fuel efficiency than a traditional, gasoline-powered car.Honda claims the vehicle offers three times better fuel efficiency than a traditional, gasoline-powered car.
It plans to produce 200 of the cars over the next three years. Honda plans to produce 200 of the cars, which are initially only available to lease, over the next three years.
One of the biggest obstacles standing in the way of wider adoption of fuel cell vehicles is the lack of hydrogen fuelling stations.One of the biggest obstacles standing in the way of wider adoption of fuel cell vehicles is the lack of hydrogen fuelling stations.
The car will initially be available for lease starting July to a limited number of customers in southern California and then in Japan later this year. This is an important day in the history of fuel cell vehicle technology John Mendel, executive vice president of American Honda
Honda says it expects to lease a few dozen units in the U.S. and Japan within a year, and about 200 units within three years. The first five customers are all based in southern California because of the proximity of hydrogen fuelling stations, Honda said.
US actress Jamie Lee Curtis will be among the first to take delivery of the vehicle, the firm added.
'Monumental step'
The car will initially be available for lease in California starting in July, and then in Japan later this year.
"This is an important day in the history of fuel-cell vehicle technology and a monumental step closer to the day when fuel cell cars will be part of the mainstream," said John Mendel, executive vice president of American Honda.
Honda says it expects to lease a few dozen units in the US and Japan in 2008, and about 200 units within three years.
It said the cost of the car, on a three-year lease, would be $600 (£300) a month.It said the cost of the car, on a three-year lease, would be $600 (£300) a month.
Booming demand
Meanwhile, rival Toyota said it was struggling to keep up with booming demand for hybrid vehicles because it is unable to make enough batteries.
Hybrid vehicles, such as Toyota's top-selling Prius, switch between a petrol engine and electric motor.
Toyota Motor Corp's executive vice president, Takeshi Uchiyamada told the Associated Press that new battery production lines can't be added until next year.
"Hybrids are selling so well we are doing all we can to increase production," he said. "We need new lines."