GM, Toyota in talks for hydrogen cars
James Mackintosh / Paris May 13, 2005
General Motors is in advanced discussions with Toyota about building a joint factory to make hydrogen-powered car engines in an attempt to speed up the adoption of the environmentally-friendly technology.
The US and Japanese companies, the world's two largest carmakers, have been talking since October about a deal, which would share the heavy costs of developing hydrogen power, according to people familiar with the situation.
The industry sees hydrogen as the long-term replacement for petrol, although formidable technical barriers remain.
European and other Japanese companies have also approached GM about its hydrogen technology, people close to the talks said.
According to people close to the talks, a GM-Toyota tie-up would be aimed in part at sending a wake-up call to governments, fuel companies and the materials industry.
Billions of dollars will need to be invested to create hydrogen production and distribution facilities in parallel to existing petrol stations.
Commercialising hydrogen cars will also need companies from outside the traditional motor industry supply base to gear up to supply components - some of which use nanotechnology - to carmakers.
ﾂ"If this alliance happens it will send a huge message that this is no longer a question of if, it is a question of when: there is a deadline,ﾂ" said one person familiar with the talks.
Lindsay Brooke, a senior analyst at CSM Worldwide in Michigan, said the combination of GM and Toyota would have ﾂ"massive cloutﾂ" in pushing others to invest in hydrogen.
ﾂ"In terms of moving the energy industry and governments forward this would be a powerful alliance,ﾂ" he said.
There is deep scepticism in much of the motor industry that hydrogen fuel cells, which generate power while converting hydrogen into water, can be made cheap enough to sell in any numbers within the next 10-15 years.
But GM, widely seen as leading many aspects of fuel cell development, has committed itself to bringing down the cost enough by 2010 to build a commercially viable vehicle.
The high oil price, and the resulting near-record pump prices for petrol, has put energy efficient transport on the US political agenda.
Toyota and GM have shared some technology for fuel cells for the past five years but the discussions under way would go much deeper, involving joint development projects.
People on both sides say a deal is not expected to be signed when Rick Wagoner, GM chairman and CEO, meets top executives at Toyota next week.
Toyota and GM both declined to comment on the talks.
Jayalalithaa praises Sonia, PM
James Mackintosh / Paris May 13, 2005
General Motors is in advanced discussions with Toyota about building a joint factory to make hydrogen-powered car engines in an attempt to speed up the adoption of the environmentally-friendly technology.
The US and Japanese companies, the world's two largest carmakers, have been talking since October about a deal, which would share the heavy costs of developing hydrogen power, according to people familiar with the situation.
The industry sees hydrogen as the long-term replacement for petrol, although formidable technical barriers remain.
European and other Japanese companies have also approached GM about its hydrogen technology, people close to the talks said.
According to people close to the talks, a GM-Toyota tie-up would be aimed in part at sending a wake-up call to governments, fuel companies and the materials industry.
Billions of dollars will need to be invested to create hydrogen production and distribution facilities in parallel to existing petrol stations.
Commercialising hydrogen cars will also need companies from outside the traditional motor industry supply base to gear up to supply components - some of which use nanotechnology - to carmakers.
ﾂ"If this alliance happens it will send a huge message that this is no longer a question of if, it is a question of when: there is a deadline,ﾂ" said one person familiar with the talks.
Lindsay Brooke, a senior analyst at CSM Worldwide in Michigan, said the combination of GM and Toyota would have ﾂ"massive cloutﾂ" in pushing others to invest in hydrogen.
ﾂ"In terms of moving the energy industry and governments forward this would be a powerful alliance,ﾂ" he said.
There is deep scepticism in much of the motor industry that hydrogen fuel cells, which generate power while converting hydrogen into water, can be made cheap enough to sell in any numbers within the next 10-15 years.
But GM, widely seen as leading many aspects of fuel cell development, has committed itself to bringing down the cost enough by 2010 to build a commercially viable vehicle.
The high oil price, and the resulting near-record pump prices for petrol, has put energy efficient transport on the US political agenda.
Toyota and GM have shared some technology for fuel cells for the past five years but the discussions under way would go much deeper, involving joint development projects.
People on both sides say a deal is not expected to be signed when Rick Wagoner, GM chairman and CEO, meets top executives at Toyota next week.
Toyota and GM both declined to comment on the talks.
Jayalalithaa praises Sonia, PM
