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Ecostar Lights the Way for Fuel-Cell Vehicles

6 August 1998

Ecostar Lights the Way for Fuel-Cell Vehicles

    TRAVERSE CITY, Mich., Aug. 6 -- A new star is charting the
course to developing electric drivetrains for fuel-cell-powered vehicles --
Ecostar Electric Drive Systems Company.
    Ford Motor Company -- the majority shareholder, Daimler-Benz AG
and Ballard Power Systems officially unveiled the
new name and logotype of their joint enterprise today during the University of
Michigan's Management Briefing Seminars, a leading automotive industry forum
held annually in Traverse City.
    "We're serious about putting high-volume fuel-cell production vehicles on
the road, and we wanted a name that reflects our goal," said Ross Witschonke,
president of the new company.  "When we asked employees to suggest ideas, they
came up with 'Ecostar' --'eco,' representing our environmental commitment and
'star' for the leadership we are showing in the pioneering arena of fuel-cell
vehicle development."
    Ecostar is one of two new ventures announced last April when Ford, Ballard
Power Systems and Daimler-Benz AG formed a global alliance aimed at becoming
the world's leading commercial producer of fuel-cell-powered electric
drivetrains and components for cars, trucks and buses.
    Ecostar will be developing advanced electric drive systems for battery-
powered and hybrid electric vehicles, as well as non-automotive applications
such as stationary power units.  The new company's goal is to build the volume
base for these components to lead to commercial viability.
    Under the agreement, Ford is the majority owner in Ecostar, with Ballard
and Daimler-Benz owning 21 percent and 17 percent, respectively.
    Daimler-Benz has majority ownership of the second company, DBB Fuel Cell
Engines GmbH, which is responsible for fuel-cell systems.  Ballard holds about
27 percent of the venture and Ford 22 percent.
    As part of the agreement, Daimler-Benz and Ford took 20 percent and 15
percent positions, respectively, in Ballard.
    The three companies have invested more than $700 million in the alliance.
Ford's total investment in the alliance is about $420 million and consists of
cash, technology and assets.
    Fuel cells, which generate power from hydrogen and oxygen, have the
potential to afford the size, range, roominess and speed of conventional cars
and trucks while emitting little more than water vapor into the atmosphere.
The alliance aims to have fuel-cell powertrains available to support
commercialization of fuel-cell vehicles by 2004.
    Fuel cells offer three key advantages over batteries:  increased range,
greater durability with lower replacement cost and, eventually, lower cost of
purchase.