BMW, Renault, Delphi Team to Develop Fuel Cell Auxiliary Power Unit

3 May 2000
BMW, Renault, Delphi Team Up to Develop Fuel Cell Auxiliary Power Unit; MOU Signed Today
                Agreement Covers Development for Cars & Trucks

    PARIS, May 2 Today, BMW, Renault and Delphi Automotive
Systems (NYSE: DPH) signed a memorandum of understanding that will enable
further cooperation on a co-development agreement among the companies to
produce vehicles that use a solid-oxide fuel cell as auxiliary electric power
for cars and trucks.
    The memorandum of understanding was signed on Tuesday, May 2, at Delphi's
Paris Headquarters.  The MOU was signed by Dr. Burkhard Goeschel, member of
the Board of BMW AG, development; Jose Maria Alapont, president of Delphi
Automotive Systems - Europe; and Pierre-Alain De Smedt, director general
adjoint for Renault.  A co-development agreement among the three companies is
expected to be reached in the next 60 to 90 days.
    This proposed partnership expands the existing development agreement
reached last April between BMW and Delphi under which they are jointly
developing a fuel-cell system to be used as an auxiliary power unit for
gasoline engines for passenger vehicles.  Now diesel-fuel solid-oxide fuel
cell reformers for Renault light- and heavy-duty trucks will also be included.
This technology will allow BMW and Renault to offer vehicles with more
electrical and electronic features that will be able to operate with the
engine off.  The technology also has the potential to reduce most of the
emissions of an internal combustion engine.
    Delphi will develop the gasoline and diesel fuel cell systems, and BMW and
Renault will integrate the system into their respective vehicles within the
next five years.
    The solid-oxide fuel cell unit will provide more energy into the vehicle
to enhance its electrical systems and provide greater functionality for the
consumer.
    The use of the solid-oxide fuel cell has three main advantages:
    *  Provides superior customer benefits.
    One of the benefits that the fuel cell APU offers, according to BMW's
Goeschel, is the ability to provide power when the engine is not running.
This feature, he explained, has appeal to those customers who, when stuck in
congested traffic, may want to run heating or cooling with the engine turned
off, thereby saving energy and reducing emissions.  With this partnership, BMW
fully intends to be the first automaker to bring this feature to market for
passenger car customers.
    *  Creates an environmentally friendly system.
    According to Alapont, Delphi sees the potential that "once we use hydrogen
with the fuel cell, we will be able to combine fuel and hydrogen, which will
result in significantly reduced emissions in the internal combustion engine."
    *  Promotes higher efficiency, which improves fuel economy.
    According to De Smedt at Renault, this fuel cell APU is "almost twice as
efficient as an engine, generator and battery combined.  This high efficiency
translates into better fuel economy, which from Renault's perspective is
especially important for diesel-powered light- and heavy-duty trucks," he
said.

    BMW, Delphi and Renault all agree that combining the power of these three
companies should make this technology more economically feasible.
    Goeschel points out that solid-oxide fuel cells do not contain precious
materials, and that BMW and Renault anticipate volume production; therefore,
the technology should be more attractive and more affordable.
    According to Donald L. Runkle, Delphi executive vice president and
president of Delphi's Dynamics & Propulsion sector, "Consumers have
demonstrated they will gravitate to the most economical solution.
    "This teaming up to address fuel cells and other advanced technology
development will give consumers what they have told us they want -- a vehicle
that is efficient, affordable, environmentally friendly, technologically
advanced and fun to drive.  Working together, we're on our journey to
achieving that goal," Runkle said.
    For more information about BMW, Renault and Delphi, please contact us on
the Internet:

    http://www.bmw.com
    http://www.renault.com
    http://www.delphiauto.com