Ballard Sells German Biz to DaimlerChrysler and Ford
08 July 2004
Canada.com. In a dramatic move, Ballard Power Systems is selling its German vehicle fuel cell business to DaimlerChrysler AG and Ford Motor Co. and warning that it will post an $18-million-US loss in the third quarter as a result.
At the same time, DaimlerChrysler is increasing its stake in the Canadian parent company [from 16.6% to 18.8%] while Ford reduces its holding [from 18.7% to 13.9%].
Vancouver-based Ballard (TSX:BLD) said Thursday that the two big automakers will acquire Ballard AG, formerly Xcellsis, and will be jointly responsible for research, development and manufacturing of the fuel cell system.“The roles and responsibilities of the alliance will be redefined, with Ballard intensifying its focus on its traditional strengths in fuel cell research, development and manufacturing, while continuing to support the development of its electric drive system,” the company said in a release.
Ballard is the technology upstart that brought the concept of a fuel-cell based vehicle much closer to reality. Despite its technology innovation, it has struggled financially.
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