Another one bites the dust. One more nail in the automotive Fool-Cell coffin.

I don't think Ballard's business ups or downs are directly related to the fundamental merits or demerits of the technology.

A smart move for Ballard. Auto mfg's prefer to do in-house development and mfg of major vehicular components such as engines and transmissions, in order to reduce cost and have firm quality control and availability of their product. In a FCV, the FC stack is THE ENGINE and the motor is the transmission.

"Fool Cell"--HA HA HA. That joke just gets funnier every time it is told!

This deal could be a win-win for all involved if you think about it. Say it is true that Chrysler is interested in Ballard. Chrysler needs people who are experienced in Fuel Cells if they are to compete with Companies who already have a progressive program in motion. Buying Ballard and their expertise could in theory put them in front with its competitors. Ballard may need the compfortable cushion of stability a major Automaker can offer, and not rely on the very niche market Fuel Cells currently occupy in the commercial sector. To me, this deal may make a lot of sense.

If I'm a Ballard shareholder, I think I just got confirmation of two things: 1) Automotive fuel cells are further away than any of us true believers thought (I'm a true believer or I wouldn't have invested), and 2) I'm not getting all of my money back, much less hitting a home run.

Ballard's valuation was based on being indenpendent, and holding the relevant IP and manufacturing capability, when the automotive fuel cell went mainstream. If they're selling out now, it's because they don't have the capital to get there before the money runs out. Selling out to one of the auto guys now means that instead of licensing IP to, or building and selling, fuel cells for all the manufacturers, Ballard is selling its leading position for a heavy discount because it can't get to the finish line by itself.

As an independent vendor with the critical IP, Ballard would have had a big chunk of the market and had the auto companies bidding against each other. (think Dolby laboratories). Obviously, that is the home run. Selling out to one car company now eliminates that independent position, and devalues the technology. This strongly suggests that the technology is not good enough to commercialize in the light vehicle sector, and won't be for some time. So if the home run is not possible, Ballard is selling out to get some (much smaller) return on the investment.

With this news, the bet on the PHEV and the series hybrid goes up in value.

Ballard made great advances in PEMs in a very short time. They could concentrate on CHP home cells that run on natural gas.