Hyundai Motor Co. unveiled a new hydrogen-powered vehicle called Initium, which it aims to release in the first half of next year as part of its broader push into the clean-burning gas.

The concept vehicle, unveiled Thursday, has a target driving range of 404 miles on a single refueling, compared with 378 miles for the Nexo, the South Korean carmaker’s first hydrogen-based SUV, according to a statement. The vehicle can also be connected to a household’s electricity supply to act as a backup source of power, the company said.

Chief Executive Officer Jaehoon Chang told reporters it’s only a matter of time before the automotive industry more widely adopts electrified powertrains. Hydrogen-powered vehicles “are not the type that’s profitable but regardless, we’re pushing for it, tackling it as if it’s a mission of ours,’ he said at the event at Hyundai’s motor studio in Goyang, north of Seoul.

While hydrogen cars have failed to gain traction — the production of the gas using renewable energy sources isn’t yet commercially viable on a large scale and it is difficult to transport, store, and dispense — Hyundai is pushing heavily into the carbon-free alternative fuel.

During an investor day in August, Hyundai pledged to invest some $4 billion over the next decade to build a future around hydrogen to meet its net zero target by 2045, and become carbon neutral across all stages of production and operation.

Mortgage rates jump for 5th week

The average rate on a 30-year mortgage in the U.S. rose for the fifth straight week, returning to its highest level since early August.

The rate rose to 6.72% from 6.54% last week, mortgage buyer Freddie Mac said Thursday. That’s still down from a year ago, when the rate averaged 7.76%.

Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners seeking to refinance their home loan to a lower rate, also increased this week. The average rate rose to 5.99% from 5.71% last week. A year ago, it averaged 7.03%, Freddie Mac said.

Borrowing costs have climbed steadily since late September, when the 30-year average hit a two-year low of 6.08%.

Strong economic reports have bolstered the case for a slower pace of interest-rate cuts by the Federal Reserve, which is scheduled to meet next week. A measure of inflation that’s closely watched by the central bank had its biggest monthly gain since April, data for September showed. This month’s employment report is due out Friday.

VW unveils plan to keep plants open

Volkswagen AG laid out cost-savings proposals to workers that would shore up its financial position while potentially avoiding factory closures in Germany.

Arne Meiswinkel, the carmaker’s chief negotiator, said the measures include a 10% pay cut and revised bonus system. The moves are meant to shore up the VW brand that’s struggling with poor demand in Europe and intensifying competition in China.

VW and labor leaders warned that plant closures remain a possibility if a sufficient agreement can’t be reached.

“We’re open to any discussion to reach our financial goals,” Meiswinkel told reporters in Wolfsburg on Wednesday after talks with labor leaders. Wages at the automaker would remain “highly attractive” even after the cuts, he added.

Volkswagen shares have declined 20% this year, ranking among the worst performers on Germany’s benchmark DAX Index.

Compiled from Bloomberg and Associated Press reports.