Clean, Cost-Competitive Automobiles On The Horizon
11 August 1998
Clean, Cost-Competitive Automobiles On The Horizon, Investors Told At Seattle Informed Investors Forum
SEATTLE--Aug. 10, 1998--The model year 2004-2005 may be the beginning of the end for humankind's No. 1 pollutant, auto emissions, as competitively-priced, zero emission vehicles (ZEVs) start to find their way into automobile showrooms.
That was the picture painted by Paul Lancaster, treasurer and acting CFO of Ballard Power Systems and (TSE:BLD), at Saturday's Informed Investors New Millennium Stocks Forum. It was only the second investor presentation Ballard has ever made an in the United States, Lancaster said, and the first to individual investors.
Ballard was one of four companies -- the others were INTERLINQ Software , Wall Data and Medical Science Systems -- whose executives gave attendees first-hand looks at their future prospects. Audio tapes ($28.95) and video tapes ($48.95) of the Forum are available. Also, a transcript of Ballard's presentation is available for $25. Call 800/992-4683 to order. For information about Informed Investors, visit www.informedinvestors.com.
Lancaster, who emphasized his presentation consisted primarily of forward-looking statements, said Ballard's transportation business alliance with Daimler-Benz and Ford is proceeding apace to hit their target of mass producing 100,000 ZEVs by 2004-2005. Daimler-Benz and Ford own 20% and 15%, respectively, of Ballard. As part of the alliance, Ballard owns minority positions in two affiliated companies with Daimler-Benz and Ford, DBB Fuel Cell Engines that produces fuel cell engine systems, and ECo., a manufacturer of electric drive trains for electric vehicles. Approximately $1 billion (Canadian) has been invested thus far.
Lancaster's talk touched upon the wide range of applications for Ballard's fuel cells. While transportation has received the most attention, stationary power generation is perhaps as large an opportunity as transportation, Lancaster said. Ballard has taken the same alliance approach in that industry. Its subsidiary, Ballard Generation Systems, has partnerships with GPU International in the U.S., the big French power producer ALSTHOM and Japanese manufacturer EBARA to produce and market stationary fuel cell power plants on three continents. Ballard is also pursuing markets for fuel cell applications in the portable power, marine and aerospace applications, Lancaster said.
Top priorities for Ballard are the focus on manufacturing cost reduction, being first to market to set industry standards and generally "translating our technological leadership into market leadership, much like Intel has," Lancaster said.
Other highlights: Ballard has about 240 patents covering about 70 products; fuel cell-powered electric vehicles are about twice as efficient as internal combustion-powered vehicles; all Ballard employees are stockholders; currently, methanol appears to be the most practical fuel source although gasoline and hydrogen fuels can be used as well.
"We are fuel neutral," Lancaster said when asked which fuel will likely prevail. "Our cells can work with whichever fuel becomes the standard and that may not be the same in every country. While we are partnering with Daimler-Benz and Ford, we'll sell -- and we do already
-- our fuel cells to anybody else. The same goes for the engines. We may sell them to other auto manufacturers in addition to Daimler and Ford."
Ballard sells fuel cells to GM , Chrysler , Nissan , Honda , Mazda, Volkswagen, and Volvo in the transportation sector as well as Hitachi , Matsushita Electric Works , GPU International , ALSTHOM, EBARA, and Cinergy in the stationary power business.
"We are looking to create an industry and we know we have to be fast, nimble, agile and entrepreneurial to succeed. We know for our products to succeed, we have to be cost competitive," Lancaster said in conclusion. "That's the only way we can live up to our corporate slogan -- that we have the power to change the world."
"Ballard's presentation leaves little doubt it intends to be the leader in the field," said Steve Chanecka, president of Informed Investors. "Some investors believe Ballard can become in its industry what America Online , Microsoft , Cisco , Dell , Yahoo , IBM , Pfizer , Amazon etc. are in theirs. That remains to be seen, but Ballard's approach is comprehensive and impressive."
The focus of Saturday's Forum was to help investors discover companies that will grow into the industry leaders and blue chips of the 21st Century. The keynote speaker was Michael Adams, First Vice President/Investment Officer at Dain Rauscher in Seattle. His talk covered "How To Spot Winning Stocks Of The New Millennium."
Since 1993, Sacramento-based Informed Investors has been linking investors with management of public companies with particular strength in technology and biotechnology. Informed Investors represents individual investors who collectively hold an estimated $2 billion in investable assets.
