GM to delay production of fuel-cell concept car
Publication Date:09-September-2005
06:20 PM US Eastern Timezone
Source: Mercury News
SACRAMENTO - General Motors continues to aggressivelly push for hydrogen fuel-cell vehicles, and to
promote its role as a leader in developing that technology.
But financial problems -- GM posted its worst quarterly loss in 13 years in 2005's first quarter, and in
June said it would cut 25,000 jobs and close a number of plants by 2008 -- might be affecting that
status.
In January, at Detroit's North American International Auto Show, GM Chairman Rick Wagoner unveiled
the Sequel, the automaker's newest hydrogen-fuel concept car.
``We look forward to inviting many of you to get behind the wheel of a drivable version of Sequel,
later this year,'' he said then.
But, last week, another top GM executive suggested a drivable Sequel by year's end might be in
doubt.
``It's still up in the air, I think,'' said Elizabeth Lowery, GM's vice president for energy and the
environment. ``We'll have an announcement on that.''
She wouldn't say anything more, other than that there were no problems with the technology.
``I'm not aware of anything from an engineering standpoint,'' she said. ``It's a matter of resources.''
GM, behind rivals Toyota, Honda and Ford in putting hybrid cars and sport-utility vehicles on the road,
needs to keep putting its future-tech vehicles in front of a doubting American public.
The company, despite its ``tremendous challenges from a cost standpoint'' -- it lost $1.1 billion
globally from January to March and $1.2 billion in North America from April to June -- remains
committed to developing alternative-fuel technologies, especially hydrogen-fuel-cell vehicles, she said.
Insiders say GM's fuel-cell team has kept its staff and budget intact despite cuts elsewhere.
In fact, a five-year, $88 million agreement between GM and the Department of Energy means it will
put 44 fuel-cell vehicles on the road in demonstration projects in California, New York, Michigan and
the Washington, D.C., area by 2009.
These will be fourth-generation HydroGen3 vehicles, GM spokesman Dave Barthmuss said.
For now, Lowery said in an interview at her company's 14th-floor office a block from the state Capitol
building, GM won't be doing other demonstration projects.
``We don't want to do a lot of demonstrations beyond what we're doing,'' she said.
Instead, she said, GM will continue to focus on fixing core problems associated with hydrogen
transportation, including reducing costs and improving hydrogen storage.
``But the focus on advanced technologies and making sure we are putting the amount of resources
we need in our product portfolio and in advanced technologies is something Rick (Wagoner) is
committed to as chairman,'' she said.
``We keep those as the untouchables,'' she said.
Every automaker is working on hydrogen projects. Media reports suggest GM and a few other
companies have spent more than $1 billion on research. Eight automakers are members of the
California Fuel Cell Partnership, headquartered in West Sacramento. Al Weverstad, executive director
at GM's Public Policy Center, is this year's chairman of the partnership.
The association will sponsor a Sept. 29 to Oct. 1 road rally of fuel-cell vehicles, with stops in San Jose,
Berkeley, Oakland, San Carlos and San Francisco.
GM, which Lowery insists has the ``leadership role'' in the technology, has said it would produce a
commercially viable fuel-cell vehicle that performs competitively with internal-combustion-engine
vehicles by 2010.
Other automakers and industry experts see 2015, 2020 or beyond as a more reasonable timetable.
But GM's 2010 deadline, Lowery said, puts a stake in the ground that keeps the auto industry focused
on making progress.
GM doesn't plan any public tests of its fuel-cell vehicles, as American Honda did recently in leasing one
of its fuel-cell vehicles to a Southern California family.
But Lowery called Honda's effort a ``brilliant'' move, one that compares with how well Toyota has
marketed its Prius hybrid.
Besides fuel cells, GM is working on improving emissions and fuel economy in gasoline engines, diesel
engines, ethanol-burning flex-fuel vehicles and hybrids.
In June, the automaker released a survey that showed many Americans want a reduction on the
dependence on foreign oil and that more see hydrogen-fuel-cell vehicles as having a better chance for
long-term success than hybrids or traditional gasoline engines.
Lowery used the occasion of releasing the survey results to lament that so few know of GM's
commitment to fuel-cell research.
``It's troubling what little credit we're getting,'' she said.
The problem, of course, is that fuel-cell vehicles aren't here yet, and won't be for many, many years.
When Americans think of alternative-fuel vehicles these days, they think of hybrid cars, even though
those high-mileage vehicles still have gasoline engines. And when it comes to hybrids, the leader is
Toyota, with Honda and Ford in prominent, but secondary roles.
GM isn't even in the picture. It does sell hybrid versions of its big pickups, but they get only slightly
improved gas mileage that's still quite dreadful. The EPA says a Prius gets 60 mpg in city driving. A
four-wheel-drive Chevy Silverado hybrid gets 17 mpg in city driving.
And GM has done little to publicize these trucks. It doesn't break out their sales in its monthly sales
reports, for instance. And, until recently, it sold them in only five states.
Bottom line: Toyota sold 72,849 Prius hybrids in the first eight months of the year, while GM sold
about 2,000 hybrid pickups in the 2005 model year.
GM does sell hybrid buses, but until it gets competitive hybrids on the road -- a hybrid Saturn Vue
sport-utility goes on sale in 2006, and hybrid versions of the Chevrolet Malibu sedan, Chevy Tahoe
SUV, and GMC Yukon SUV go on sale in 2007 -- people won't notice.
Going forward, collaboration seems to be the trend. BMW announced this week it would join GM and
DaimlerChrysler in making hybrid vehicles. And rumors still persist that GM and Toyota might join
together to produce fuel-cell vehicles.
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http://www.fuelcellsworks.com/Supppage3422.html 10/09/2005
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