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To: Futurist who wrote (3013)	1/19/1999 9:03:00 PM
From: WALT REISCH	Read Replies (1) \| Respond to of 8393

Battery Technologies for Automotive Applications Forces a Potential Shift in Technology January 19, 1999 19:05 LITTLE FALLS, N.J., Jan. 19 /PRNewswire/ -- The global automotive battery industry may be on the cusp of large-scale change opening the door for new competitors. This is due to the increasing amount of high-profile announcements by leading automobile producers and their plans for hybrid electric vehicles (HEVs) in the United States, Europe, and Japan. Such major Japanese auto producers as Honda, Toyota, and Nissan are planning to launch new HEV models in 1999, while U.S. and European automobile producers have new products on the horizon. To make these new platforms attractive to consumers and commercially viable, many of the automobile producers are utilizing such advanced battery technologies as nickel metal hydride and lithium ion. The implication of this to the automotive industry is that now the leading rechargeable battery producers can apply new technologies and chemistries to the automotive market, which has been dominated by lead-acid rechargeable batteries. The breadth of new technology choices includes nickel metal-hydride (NiMH), nickel cadmium (NiCd), lithium ion, and lithium polymer. It is apparent that many of the leading automotive original equipment manufacturers (OEMs) are looking to nontraditional suppliers to meet their future rechargeable battery requirements, as shown below: Company Developmental efforts Partners General Motors NiMH Ovonic Lithium ion polymer Delphi/Valence Technology Nissan Lithium ion Sony Toyota NiMH Matsushita Battery USABC-a Lithium polymer (metal) 3M/Hydro Quebec a - Includes Chrysler, Ford, and GM. A parallel example of a rapid and dramatic change that may occur in the automotive industry can be found by reviewing the recent development and commercialization of advanced batteries in the portable electronics industry. Before the explosion in growth of portable electronics, nickel cadmium-based chemistry was the battery technology of choice for small, portable devices. NiCd was developed in the latter part of the 1940s and met the requirements of portable equipment users up to the late 1980s. However, with the rapid miniaturization of portable electronics, NiCd no longer met electronic 0EMs' demands regarding such important criteria as light weight and self-discharge. At this point, companies involved in NiMH technology saw the opportunity to position this chemistry as a better solution to NiCd. Then in 1993, Sony launched its lithium ion technology to better meet portable electronics 0EMs', as well as consumers' increasing needs and demands. This new product helped strengthen Sony's leadership position in the portable electronics business because it was able to deliver such value-added enhancements as lighter weight and longer run devices. The changing value proposition of the consumers and OEMs is what led to the commercial development of two new chemistries -- lithium ion and NiMH. The successful introduction of these two new chemistries, based on a market-pull, also substantially changed the competitive structure of the advanced rechargeable battery industry, and allowed new world-class competitors into this market. Revenues for the global battery business reached an estimated $30 billion in 1998. Starting, lighting and ignition (SLI) and related secondary battery applications represent approximately one-half of the overall market, while primary batteries represent approximately 35% and high-performance secondary batteries represent the remaining 15%, or $4.5 billion. Many of the leading high-performance secondary battery producers are targeting automotive applications as their next long-term growth objective. What is not certain at this time is the final configuration(s) and commercialization of electric vehicles (EVs) and HEVs that will drive the final value proposition as well as adoption and implementation of advanced battery technologies for automotive applications. To help better understand the performance and value needs of this enormous opportunity, Kline & Company is launching the multiclient study GLOBAL OPPORTUNITIES FOR ADVANCED BATTERY TECHNOLOGIES IN AUTOMOTIVE APPLICATIONS, 1998 TO 2008. This study will investigate and analyze the emerging opportunities in the battery industry. For more information please contact Michael Corbett at 973-435-3457 or email mike_corbett@klinegroup.com. SOURCE Kline & Company /CONTACT: Michael Corbett of Kline & Company, 973-435-3457, or mike_corbett@klinegroup.com/ /Web site: klinegroup.com

To: Futurist who wrote (3013)	1/19/1999 11:15:00 PM
From: Futurist	Respond to of 8393

To: Futurist who wrote (3013)	1/20/1999 5:35:00 PM
From: Futurist	Read Replies (1) \| Respond to of 8393

This is probably good news for us. When GM's happy, they have $ to put into innovation. GM earnings jump 13 percent to $1.8 billion (Last updated 5:22 PM ET January 20) In DETROIT story headlined "GM earnings jump..." first four paragraphs rewritten to show operating earnings, excluding special items, beat analyst expectations. A corrected story follows. DETROIT (Reuters) - General Motors Corp.'s fourth-quarter profits jumped 13 percent to $1.8 billion due to strong performance from its core North American operations and aggressive cost-cutting, the world's biggest automaker said on Wednesday. GM's results on a per-share basis were $2.64, a record for a fourth quarter vs. $2.29 in the year-ago period. Included in the fourth quarter were total after-tax charges of $420 million to cover the costs of an employee separation program and underperforming assets overseas. Without the special items, GM said its fourth-quarter earnings would have been $2.2 billion or $3.25 a share on a fully diluted basis. The operating results were above the First Call Corp. consensus analyst estimate of $2.65 a share. Revenues for the quarter rose to $46.4 billion from $42.9 billion after the company ramped up production to recover from two labor strikes earlier in the year. GM's results were driven by its North American automotive operations, which saw net income more than double to $1.7 billion from $650 million. After taking into account losses in Latin America and, Africa and Asia, the company's total income from automotive operations was $1.5 billion vs. $831 million. The company's Delphi Automotive Systems supply unit had income of $280 million vs. $349 million in the year-ago period. Separately, GM said it will pay about $200 each in 1998 profit-sharing checks to 231,000 employees in the United States. Last year, employees received $750 each. GM also announced it would resume its share buy-back program in the first quarter with a targeted completion date of the end of 1999.