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Technology Stocks : Ballard Power -world leader zero-emission PEM fuel cells -- Ignore unavailable to you. Want to Upgrade?

To: Hawkeye who wrote (2537)	5/8/1998 8:48:00 AM
From: BMWIN	Read Replies (1) \| Respond to of 5827

An article from the Wall Street Journal. It appears to be cloudy today. WASHINGTON -- A much-touted partnership between the Clinton administration and U.S. auto makers to bolster competitiveness and reduce pollution is driving into uncertainty now that Chrysler Corp. is planning to merge with Daimler-Benz AG. Under the program, called the Partnership for a New Generation of Vehicles, Washington funds research aimed at fuel efficiency and cleaner cars. The U.S. government has spent about $250 million a year on the program since its creation in 1993. The catch: Foreign-owned auto companies doing business in the U.S. aren't allowed to participate. "I'd hate to be entrusted with having to sort this out," says John Buntin, a researcher who wrote a case study of the PNGV program for Harvard University's Kennedy School of Government. "Now maybe Vice President Gore is going to have to choose between the two goals of this program: to develop a clean car and to bolster the U.S. economy." Government officials, many of whom run defense-related laboratories where the auto research is done, are now trying to figure out whether a German-owned company could participate in the partnership. Many of the labs have restrictions on cooperative research projects involving foreign-owned entities. "This is new information to us, and we need to discuss it with our partners," says one U.S. official. "We are struggling with this," concedes John Sargent, public affairs director for the program, which is overseen by the Commerce Department. "There are a whole lot of players in this mix, and, frankly, until this thing becomes more clear, there's not much we can say at this point." The program's main projects involve fuel cells, cleaner-burning diesel engines and electric cars. The aim is to keep U.S. auto makers ahead, or at least abreast, of the global race to develop a more fuel-efficient car by the next century. Chrysler says it sees no problems with the partnership's viability. "We remain enthusiastic participants and see no reason for this important initiative not to continue," says Tom Gale, an executive vice president of Chrysler. Amory B. Lovins, an author, environmental activist and close student of the auto industry's use of the program, says it has had a major impact on the "black research," or secret development projects, of the Big Three. He estimates that Ford Motor Co., Chrysler and General Motors Corp. are much closer to the program's goal of developing a cleaner car that gets as much as 80 miles per gallon than they are willing to publicly admit. If Chrysler is expelled from the partnership, Mr. Lovins says, "there are those in Ford and GM who won't be altogether sorry" because those two companies would gain a competitive advantage. Ford is publicly taking a wait-and-see approach. "We have to look at this situation for what's best for Ford Motor Company, and that is going to take some time," says company spokeswoman Sara Tatchio. A General Motors spokesman didn't have any comment. Although foreign auto makers aren't in the partnership, a handful of foreign-owned companies play a role in it. For example, Ballard Power Systems Inc. of Vancouver, British Columbia, takes part in PNGV research by supplying fuel-cell technology to Ford, General Motors and Chrysler. But the Daimler-Chrysler deal could change that. In April 1997, in an arrangement having nothing to do with PNGV, Ballard formed an alliance with Daimler-Benz, which bought 20% of its stock. Last December, Ford joined the alliance, buying an additional 15% of Ballard's stock. A merged Daimler and Chrysler would become Ballard's biggest stockholder-raising questions about Ballard's continuing participation in the partnership.