Heads of Toyota, General Motors Strengthen Partnership in Fuel Cell Technology

TOKYO May 15, 2005; The AP reported that the heads of Toyota Motor Corp. and General Motors Corp. have agreed to strengthen their partnership in development of technologies for environmentally friendly vehicles, major Japanese newspapers reported Sunday.

Toyota President Fujio Cho and visiting GM Chief Executive Richard Wagoner agreed in a meeting Saturday to step up cooperation in areas such as fuel cell-powered vehicles, the national newspaper Yomiuri said.

Leading business newspaper Nihon Keizai quoted Cho as saying that the two sides did not make any concrete agreements, but "we plan to strengthen our partnership with GM" in fuel cell technology.

A partnership would allow the world's two biggest automakers to share the cost of developing fuel cell-powered cars -- pollution-free vehicles that are powered by hydrogen.

Many in the industry believe fuel cells will eventually replace gasoline as the primary power source for cars.

Wagoner, who arrived in Japan on Friday, also met with Toyota Honorary Chairman Shoichiro Toyoda on Saturday to discuss a fuel cell technology tie-up, Kyodo News said.

Calls to Toyota and GM on Sunday were not answered.

Saddled with huge health care and pension liabilities, GM lost US$1.1 billion in the first quarter. Its bonds were recently downgraded to junk status and its stock hit a 10-year low in April.

Toyota reported US$2.8 billion in profit in the same quarter and commands an edge in the market for environmentally friendly hybrid vehicles, which run on a combination of electricity and gasoline.

Toyota and GM already have a partnership but it does not involve investment stakes in each other. They run an auto plant in California together and have exchanged research, including a 1999 pact to jointly develop environmental technology.