Looking back at the article, they said by 2004 (woops) 100,000
cars, by 2005 50% mkt share. biz.yahoo.com
LONDON, Sept 22 (Reuter) - Daimler-Benz AG (DAIG.F) predicted on Monday that sales of its
electric ``fuel cell'' cars powered by methanol would reach 100,000 by the year 2004.
Daimler and its Canadian joint venture partner Ballard Power Systems Inc (BLD.TO) have staked
$320 million on the new technology, but critics say factors such as cost lessen the attraction of fuel
cells as an answer to today's air pollution problems.
``We expect to sell 100,000 fuel cell cars by 2004. We expect our global market share of fuel cell
cars to be huge -- well over 50 per cent by 2005,'' said Dr Ferdinand Panik, a senior Daimler-Benz
executive heading the fuel cell project.
The U.S., a key market for Daimler-Benz's new engine, thinks the project has potential, but a U.S.
Department of Energy (DoE) official said the 2004 time-scale the German manufacturer is aiming for
was over-optimistic.
``Fuel cell cars have potential, but they are still too expensive,'' said DoE official Steve Chalk at a
fuel cell conference. ``They need more research and development.''
The DoE itself has ploughed 50 million dollars into researching low emission car engines in
association with the big three automakers, Ford (F), General Motors (GM) and Chrysler (C).
To meet stringent U.S. emission laws, the department is looking to build a fuel-efficient low-emission
production prototype vehicle by 2004.
Chalk would not say what engine system the DoE production prototype would use, but indicated
engine types other than fuel cells, including a low-emission diesel engine, were more likely to meet its
selection criteria.
A fuel cell produces electricity in an electrochemical reaction between hydrogen and oxygen. Unlike
a conventional combustion engine, it produces little or no toxic emissions, and produces water as its
only by-product.
The Economist Intelligence Unit (EIU) has tipped fuel cells to become an important motor for the
21st century but said conventional engines would still be providing 90 percent of the world's power
in 15 years time.
Daimler-Benz and Ballard are undaunted.
``By the end of 1999 we will be able to produce a commercially viable fuel cell car,'' said Ballard
Vice President Mossadiq Umedaly, adding the new engine needed sales volume of around 250,000
a year to be competitive on a cost basis for the manufacturer.
Before the critical sales mass is reached, Daimler is likely to have to subsidise the cars in the early
days.
``Fuel cell cars will succeed when their efficiency, cost, and performance matches conventional fossil
fuel engines,'' said Dr Panik of Daimler-Benz.
Daimler-Benz controls 25 percent of Ballard Power Systems and 66.6 percent of the two group's
August 29 joint venture DBB Fuel Cell Engines. |
