FedEx starts using GM fuel cell vehicle for regular deliveries

FedEx Express and GM move fuel cell technology another step toward commercialization

TOKYO - A FedEx Express ("FedEx") driver made history today in Tokyo when he used General Motors' HydroGen3 fuel cell vehicle to deliver packages to a leading energy company and a major hotel.

With these deliveries, FedEx and GM officially launched the first commercial test of a fuel cell vehicle in Japan. Today's kick-off route included deliveries to Showa Shell Sekiyu K.K. and Le Meridien Grand Pacific Hotel Tokyo.

The two companies are collaborating on a one-year test program in which FedEx will operate GM's HydroGen3 fuel cell vehicle on its regular delivery routes in the metropolitan area of Tokyo. GM will collect the data obtained to better understand how its fuel cell vehicles perform under demanding, real-world conditions like those FedEx faces daily in Tokyo. The vehicle will be operated in the Marunouchi and Kasumigaseki districts in downtown Tokyo.

"This is another key step toward true commercialization - when we can sell large numbers of fuel cell vehicles to consumers at prices they can afford and that also make sound financial sense for GM," said Larry Burns, GM vice president of research and development, and planning. "It's really important to get fuel cell vehicles on the road in competitive business environments like the ones FedEx works in on the streets of Tokyo. They run a very successful global operation that demands reliability and durability."

Burns said GM expects to learn a great deal that will help in developing compelling, affordable fuel cell vehicles that customers want to buy - and can afford to buy.

"I'm excited to announce the first non-governmental daily test of GM's fuel cell vehicle in commercial environment in Japan," said David J. Ross, vice president, North Pacific Region, FedEx Express. "FedEx has long recognized effective environmental management as a corporate priority through our sustainable delivery initiatives. With the launch of this joint test program with General Motors, FedEx is again helping to lead the way in delivering cleaner air."

GM's HydroGen3, which is based on the Zafira MPV, is the first fuel cell vehicle to be granted a "green" commercial license plate in Japan, and the first liquid hydrogen-fueled vehicle approved to drive on public roads in Japan. Additionally, HydroGen3's 400 kilometer (250 mile) driving range is the highest of any fuel cell vehicle approved for public roads in Japan.

GM will collect data from FedEx on a daily basis, and will provide all vehicle engineering and maintenance.

The Zafira MPV based HydroGen3 was launched in 2001 and is GM's first entry in the recently announced Japan Hydrogen and Fuel Cell Demonstration Project, which is directed by Japan's Ministry of Economy, Trade and Industry (METI). GM will submit data from the FedEx operations as part of its participation in this project.

"Japan is a key area for GM in developing and positioning fuel cells for commercialization," said Raymond Grigg, Chairman and CEO, Representative Director, General Motors Japan Ltd. "Today's launch with FedEx is yet another example of GM's global leadership in a variety of fuel cell technologies."

GM recently announced a partnership with Shell Oil to provide hydrogen refueling for a fleet of GM HydroGen3s in Washington D.C. And in May, GM and Dow Chemical Company came to agreement on the world's largest-ever fuel cell power deal.

GM's global fleet of HydroGen3 vehicles boasts significant advancements in packaging and technology that move GM closer to developing a production-ready fuel cell vehicle. The fuel cell propulsion system is integrated into one module, allowing the whole system to be installed as a single unit, using the same mounting points as a conventional engine. This frees up additional interior space, allowing for packaging similar to today's production models.

Other important breakthroughs in the HydroGen3 include eliminating the need for a buffer battery - needed in previous generations to deal with specific peak-power demands - as well as developing an internal system for humidifying the fuel cell stack.

GM has approximately 600 people working on fuel cell technology at its three U.S. facilities in Honeoye Falls, N.Y., Warren, Mich. and Torrance Calif., as well as at its research facility in Mainz-Kastel, Germany, and offices in Tokyo.

General Motors Corp., the world's largest vehicle manufacturer, employs 342,000 people globally in its core automotive business and subsidiaries. Founded in 1908, GM has been the global automotive sales leader since 1931. GM today has manufacturing operations in 32 countries and its vehicles are sold in more than 190 countries. In 2002, GM sold more than 8.6 million cars and trucks, nearly 15 percent of the global vehicle market. GM's global headquarters is at the GM Renaissance Center in Detroit. More information on GM and its products can be found on the company's consumer website at www.gm.com.

FedEx Express, a subsidiary of FedEx Corp. connects areas that generate 90% of the world's gross domestic product in one to three business days with door-to-door, customs-cleared service. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of more than 3.1 million items to 214 countries each working day. FedEx employs approximately 134,000 employees and has more than 48,000 drop-off locations, 643 aircraft and more than 43,000 vehicles in its integrated global network.

With annual revenues of $22 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, the largest U.S. provider of regional less-than-truckload freight services; FedEx Custom Critical, North America's largest provider of expedited time-critical shipments; and FedEx Trade Networks, North America's largest customs broker and a provider of international freight forwarding and trade facilitation services. FedEx ranked highest in the J.D. Power and Associates 2002 Small Package Delivery Service Business Customer Satisfaction Study(SM) in the categories of air, ground and international delivery services.