BMW and Toyota are making a risky bet on a defective product

Battery electric vehicles, such as those made by Tesla, are becoming the model for zero-emission automobiles and the focus of some lawmakers’ attention when it comes to rules and regulations that dictate the type of cars we will be allowed to buy or drive. we drive them. in the future.

Other vehicle choices on the market don’t require as much change, sacrifice or commitment, such as hybrids and plug-ins, which can be run on gas from a regular gas station.

Related: Hyundai’s latest EV is a threat breathing down Tesla’s neck

However, German luxury carmaker BMW and Japanese auto giant Toyota are placing a significant amount of chips on products powered by a future fuel that is being embraced by other automakers such as Hyundai.

However, this may not turn out to be the smartest decision they ever made.

Koji Sato, Chairman and Member of the Board of Directors (Representative Director) Toyota Motor Corporation and Oliver Zipse, Chairman of the Board of Directors of BMW AG

BMW

Bavarian Works (Hydrogen).

According to a recent announcement, BMW (BMWYY) and Toyota (TM) will collaborate on a brand-new hydrogen-powered vehicle to be launched in 2028.

The duo plans for the new offering to establish hydrogen fuel cell technology, consisting of a hydrogen-powered generator, batteries and electric motors, as an alternative to the battery electric vehicles the two brands already offer.

Little information about the new car has been revealed, but BMW says it will be based on an existing model in the portfolio. That means a 3 Series or 5 Series hydrogen sedan or an X3 or X5 crossover SUV isn’t completely out of the question.

However, the Japanese-German duo said they will jointly develop a “state-of-the-art powertrain technology” that will be used in cars from both automakers’ lineups.

Ultimately, they expect the results of this collaboration to expand the amount of hydrogen fuel cell cars on the market and provide more options for conscious customers.

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The ultimate driving car (not so).

The commitment to depend on an infrastructure that supports cars that do not run on regular gasoline is already a sacrifice in itself, since most drivers in the United States are accustomed to the convenience and easy availability of gasoline.

Drivers already have to commit to charging expensive electric cars at EV charging stations that can have long lines due to “charge pigs,” but living with a hydrogen car is a sacrifice you’ll have to make with all my heart.

According to information on the automaker’s website, the Toyota Mirai, one of the few hydrogen-powered cars on the market, has an effective range of up to 402 miles.

This sounds amazing compared to battery electric vehicles like the Tesla. Still, while more than 17,000 Tesla Superchargers are spread across 50 states, hydrogen-powered cars are essentially landlocked in California.

Related: Taking the Super out of charging: Why Tesla Supercharging and other ‘fast charging’ solutions are essential to a hassle-free electric future.

According to data from the US Department of Energy, hydrogen fueling infrastructure has not developed beyond the Golden State as all 55 hydrogen filling stations in the country are located exclusively in the state. Plus, if you happen to live near one of these stations, mostly populated in the San Francisco Bay Area and Los Angeles, expect to pay prices that make filling up a Ferrari look like a bargain if you can find a working station.

During Donut Media’s test of a Toyota Mirai, host Nolan J. Sykes noted that unlike electric vehicle chargers that are plugged into the grid or gas stations that are regularly filled with fuel, an app they used -o to find hydrogen refueling stations showed that many of the stations are either offline or simply out of hydrogen.

“You can drive a long distance to get to a station that the app says is working, wasting a good amount of precious fuel in the process, and then (the gas station) might be closed anyway, or there might be a massive line, or the guy who got there just before you froze his car pump.” Sykes said.

Sykes noted that during the test, the car used relatively little hydrogen, which was reflected when they actually topped off the tank by filling it with a kilogram of hydrogen, which cost $27.70. Toyota says the Mirai’s tank is “about 5 kilograms,” which would put a full tank at $138.50.

Related: Hyundai’s latest EV is a threat breathing down Tesla’s neck

This is not cheap. In comparison, data from the American Automobile Association (AAA) shows that at the average price of $4,981 for a gallon of premium gas in Los Angeles at the time of writing, it would cost just $105.09 to fill up the tank for 21, 1 gallon of a 2024 Ferrari Roma.

Because high fuel costs have dampened the Mirai’s appeal, starting July 4, Toyota is offering $33,000 off the top-of-the-line Limited and $25,000 off the base XLE’s $50,190 sticker price. Additionally, Toyota will introduce a $15,000 hydrogen “gas card.”

In their statement, BMW and Toyota said they “support the creation of an enabling framework by governments and investors to facilitate entry into the early phase of hydrogen mobility and ensure its economic viability” and “are looking for regional or local projects to further drive the development of hydrogen infrastructure through collaborative initiatives.”

Bayerische Motoren Werke (BMW) trades on the OTC markets as BMWYY and is trading at $29.71 at the time of writing.

Toyota Motor Company trades under the symbol TM on the New York Stock Exchange. At the time of writing, the stock is down 1.29%, trading at $182.21.

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