Daimler-Benz and Ballard Complete Deal to Step up Cooperation; Fuel-Cell Engine on the Way to Mass Production
26 August 1997
Daimler-Benz and Ballard Complete Deal to Step up Cooperation; Fuel-Cell Engine on the Way to Mass Production
VANCOUVER, B.C., Aug. 26 -- Daimler-Benz AG, Europe's largest
industrial concern and the world's most comprehensive provider of
transportation products and services, and Ballard Power Systems Inc. of
Vancouver, Canada, the world leader in fuel-cell technology have joined forces
in an alliance aimed at being the first on the world market with mass-produced
fuel cells and fuel-cell engines for mobile applications such as passenger
cars and buses.
The fuel-cell engine as a power source compared to conventional internal
combustion engines has the advantage of much greater fuel efficiency,
significantly lower to zero emissions and drastically reduced noise.
According to the agreement signed here today both companies will merge
their research, development and marketing capabilities in the area of
fuel cells and fuel-cell engines and together contribute over CAN$450 million
toward the commercialization of this novel technology. As part of this
alliance, Daimler-Benz has acquired a 25% stake in Ballard.
Juergen Hubbert, Daimler-Benz Board Member responsible for the Passenger
Car division described the company's enthusiasm for fuel cells: "We are
determined to be the first company to offer a volume-manufactured vehicle
powered by fuel-cell engines. That's the reason for our extensive commitment
in this field and our alliance with Ballard Power Systems." Helmut Petri,
Daimler-Benz Executive Director for Passenger Car Development, added,
"Globalization of development means that resources should be pooled where it
is advantageous. Strategic technology management is essential if the Group is
to strengthen its lead -- and our collaboration is a particularly successful
example of this principle in practice."
A new company, DBB Fuel Cell Engines, in which Daimler-Benz holds a
two-third and Ballard a one-third share will commercialize fuel-cell engines
for the world automotive market. Fuel cells and fuel-cell engines will be
marketed by Ballard Automotive, in which DBB Fuel Cell Engines and Ballard
each have a fifty percent share.
Firoz Rasul, President and Chief Executive Officer of Ballard Power
Systems said, "We believe that fuel-cell technology will be the cornerstone
for the next millennium in producing power. Through this alliance, the
strengths of two companies will be combined to create and commercialize a
clean and efficient method for generating power for transportation. Success
will come from meeting the needs of consumers at a competitive price and
performance. We believe this new alliance is now on the way to delivering the
solution."
Daimler-Benz is committed to be the first company to offer a mass-produced
passenger car powered by a fuel-cell engine. Hydrogen-powered fuel-cell buses
have been demonstrated by both Ballard and Daimler-Benz and are soon to be
fleet tested in regular transit service in Chicago and Vancouver, B.C.
Through the combined efforts of Daimler-Benz and Ballard over the last four
years, the size of a fuel-cell engine has been dramatically reduced making
them suitable for automotive use. The third prototype of a fuel-cell-powered
Mercedes-Benz car will be the A-Class subcompact, which will be introduced to
the public in October 1997.
Dr. Ferdinand Panik, head of the Fuel Cell Project Unit for Daimler-Benz,
added, "Hydrogen is an ideal energy carrier for vehicles in fleets that have
central refueling facilities. For cars on the other hand, a liquid fuel such
as methanol, offers greater convenience. Our first targets therefore are
hydrogen-powered buses for local public transport on the one hand, and on the
other hand, methanol-driven cars where the hydrogen used to feed the fuel cell
is obtained from the liquid fuel using an on-board reformer."
Daimler-Benz has 290,000 employees worldwide and revenues of approximately
$70 billion. Daimler-Benz is focused on the development and manufacture of
Mercedes-Benz cars and commercial vehicles, Freightliner trucks as well as
Adtranz rail systems, MTU diesel engines and TEMIC microelectronics. Daimler-
Benz Aerospace builds aircraft and space systems and Daimler-Benz
InterServices provides leasing and sales financing, mobile communications and
information technologies. North America, where Daimler-Benz employs more than
19,000 people, is the largest regional market outside of Europe and accounts
for approximately 20 percent of worldwide revenues. In 1993, Daimler-Benz
became the first German company to list its stock on the New York Stock
Exchange (symbol: DAI).
Ballard Power Systems is the world leader in the development of proton
exchange membrane fuel cells. At the heart of its products is the Ballard
Fuel Cell, a proprietary zero-emission engine that converts natural gas,
methanol, or hydrogen fuel into electricity without combustion.
Ballard Fuel Cells are currently being used by leading international companies
to develop zero-emission vehicles and clean stationary electric power
generators. Ballard Power Systems Common Shares are listed on the Toronto
Stock Exchange under the trading symbol "BLD" and on the Nasdaq National
Market System under the symbol "BLDPF."
SOURCE Daimler-Benz AG
