A Honda executive told Inside Line the latest fuel-cell powertrain will be installed in the FCX, a five-passenger luxury sedan that Honda unveiled last fall at the Tokyo Motor Show and has been taking on the rounds of the international auto show circuit.

The third-generation fuel cell moves the company closer to a production-ready system, sources said. Earlier this year, the company announced plans to put a version of the FCX concept sedan into production within the next three to four years.

Honda also makes a smaller fuel-cell vehicle, a Civic-size hatchback that it also calls the FCX. Built in extremely limited numbers, the compact FCX made its U.S. debut in late 2004. Since then, Honda has delivered more than a dozen of the second-generation fuel-cell vehicles to families and local governments in several states. The vehicles are on short-term lease and are intended to give the automaker some real-world experience with fuel cells. The EPA rates the hydrogen-powered 2006 Honda FCX at 62 mpg in city driving and 51 mpg on the highway.

What this means to you: Honda was at the forefront of hybrid vehicle production; does anyone doubt it will also be among the first to build real FCVs for sale?