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.
