Opportunities for Fuel Cells in Automotive Applications

20 October 1999
Opportunities for Fuel Cells in Automotive Applications Driving Major Development Efforts
    LITTLE FALLS, N.J., Oct. 19 -- The global automotive industry
may be on the threshold of sweeping transformation as a result of the rapid
development in fuel cell technology.  "Fuel cells have the potential to
replace the internal combustion engine and could provide a quantum leap to the
manner in which power is generated in automobiles.  This in turn will present
major opportunities for and have an enormous impact on suppliers of key
materials and components to both fuel cell producers and automotive OEMs,"
according to Michael Corbett, Project Manager at Kline & Company, Inc., a
Little Falls, New Jersey-based management consulting firm.
    Based on preliminary findings from a study currently under way at Kline &
Company entitled THE GLOBAL OUTLOOK FOR FUEL CELLS IN AUTOMOTIVE APPLICATIONS,
1999 - 2009, Daimler-Benz has committed to 30,000 fuel cell vehicles in 2004
and 100,000 fuel cell vehicles in 2005.  Toyota, Nissan, and Honda have also
already committed to having a commercial product in 2003.  While California
Air Resources Board (CARB) mandates have driven the demand for hybrid electric
vehicles (HEVs) and electric vehicles (EVs) in the United States, consumer
demand is driving innovation in Germany and Switzerland.
    Despite the enormous potential, the commercialization of fuel cells
continues to require development progress.  "Fuel cells have already exceeded
long-term research targets for weight and volume," according to Bob Rose,
executive director of the U.S. Fuel Cell Council.  "A factor-of-ten reduction
is still required," predicts Rose, "to make fuel cell engines competitive with
mass produced gasoline engines for passenger cars."
    Recognition of the potential and benefits of this technology has led to
unique market partnerships and created a deluge of research activity.
Commercial and academic establishments aim to reduce the cost of fuel cells
and create a competitive advantage over conventional engines.  Such benefits
as reduced emissions, high efficiency, and low noise generation will address
environmental concerns as well as government legislation issues.
    THE GLOBAL OUTLOOK FOR FUEL CELLS IN AUTOMOTIVE APPLICATIONS, 1999 - 2009
is a comprehensive report assessing the market potential for fuel cells in
automotive applications.  It focuses specifically on the impact of
technological developments, and analyzes potential market opportunities in
emerging automotive platforms as well as reviews such commercial issues as
market timing and barriers to entry.  This study will provide long-term
forecasts for the demand of fuel cells and a detailed assessment of global
forecasts by geographical regions, including North America, Western Europe,
and Japan.  Finally, it will review the key success factors and demand
forecasts and provide an opportunity assessment for automotive original
equipment manufacturers (OEMs), fuel cell producers, and materials suppliers
looking to compete in this industry.
    Established in 1959, Kline & Company, Inc. is a leading business
consulting firm serving the electronics, specialty chemical, and materials
industries worldwide.  Over the last ten years, Kline has completed numerous
projects related to advanced electrochemical systems, materials, and
applications, focusing on both market opportunities and future materials
needs.
    Kline's new study, THE GLOBAL OUTLOOK FOR FUEL CELLS IN AUTOMOTIVE
APPLICATIONS, 1999 - 2009, is due to be published in the fourth quarter of
2000.  For information on how to subscribe to the study, contact Michael
Corbett directly at Kline & Company, Inc., Overlook at Great Notch, 150 Clove
Road, Little Falls, NJ, 07424, at 973-435-3457, or via e-mail at
Mike_Corbett@klinegroup.com.  For a complete list of syndicated studies
available from Kline & Company, Inc., please visit their Web site at
http://www.klinegroup.com or contact Lynn A. Gillette, Sales Coordinator,
Syndicated Studies, at 973-435-3448 or via e-mail at
Lynn_Gillette@klinegroup.com.