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Ballard Power Sells Vehicle Fuel Cell Division To DaimlerChrysler, Ford

Posted on Friday, July 09 at 10:50 by N Say

Ballard Power sells vehicle fuel cell division to DaimlerChrysler, Ford
Last Updated Thu, 08 Jul 2004 17:06:42

VANCOUVER - Ballard Power Systems said Thursday it is selling its vehicle fuel cell business to DaimlerChrysler and Ford Motor Co.

Vancouver-based Ballard also said it expects to post an $18 million US writedown in the third quarter as a result of the deal.

Ballard said DaimlerChrylser and Ford will buy its 50.1 per cent stake in Germany's Ballard AG, formerly called Xcellis. The two big automakers will be responsible for research, development and manufacturing of the fuel cells.

DaimlerChrysler and Ford will provide up to $58 million US in funding for the next two generations of vehicular fuel cells and the next generation electric drive system.

In exchange for the stake in Ballard AG, DaimlerChrysler and Ford will return to Ballard Power 9 million of its common shares. Those shares, valued at $80.4 million US based on Wednesday's closing market prices, will be cancelled.

When the deal closes, DaimlerChrysler and Ford will invest $55 million in exchange for 4.5 million Ballard shares.

"This capital investment by DaimlerChrysler and Ford will provide Ballard with additional financial strength and flexibility," Dennis Campbell, Ballard's president and chief executive officer.

The changes will mean DaimlerChrysler overall stake in Ballard Power will rise to 18.8 per cent from 16.6 per cent, while Ford's holding will shrink to 13.9 per cent from 18.7 per cent.

Shares of Ballard Power were off 9 cents at $11.79 on the TSX.

Written by CBC News Online staff

http://www.cbc.ca/stories/2004/07/08/business/ballard_040708

Note: http://www.cbc.ca/stori...

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Comments

  1. by Kory Yamashita
    Fri Jul 09, 2004 10:23 pm
    I don't understand why a company with so much potential would just sell itself off like that. This is terrible. Fuel cells are going to drive a multi-billion dollar transportation and energy revolution. With the far-reaching implications of clean energy, we could be talking about trillions of dollars in the long run. Why sell it for a few dozen million?? Bah!!

    Obviously I'm missing something here.

    -KY

    ---
    Kory Yamashita

    "What lies behind us and what lies ahead of us are tiny matters compared to what lies within us." - Oliver Wendell Holmes

  2. by Perturbed
    Sat Jul 10, 2004 1:39 am
    Well, we aren't in a position to do anything yet. Ballard only made the cells, not the fuel source components, and they had no plans to do a car on thier own. As David Orchard mentioned, they would've made a superior car with Bombardier's help, but only a government with authority would make that happen.

    We could alway seize Ballard some day if it isn't helping Canada. :) Or we could start our own company, and steal away their employees with fat government paycheques!

  3. by Anonymous
    Sat Jul 10, 2004 4:19 am
    Sure, pour even more money into the Bombardier sinkhole. It's time they let that hothouse flower die.

  4. by Dave Ruston
    Sat Jul 10, 2004 4:58 pm
    They sold out for the same reason everyone else sells out- grab the quick and easy windfall, then get out of the game and become the idle rich, as opposed to having a vision and working lifelong for something good.

    ---
    Dave Ruston

  5. by Anonymous
    Sat Jul 10, 2004 5:10 pm
    Yep! And the odds are much better than lotto tickets......I think the <b>pride</b> of being Canadian, and doing for Canada was beaten out of us when Dief was pressured into cancelling the ARROW, and caved.

  6. by avatar whelan costen
    Sat Jul 10, 2004 7:30 pm
    I agree the Avro arrow was a major let down for Canadians, however I think we have more fight in us than that! We are not really a beaten people, we are just misinformed and have very negative leadership. If more people stood up we wouldn't feel this way!

    ---
    If I stand for my country today...will my country be here to stand for me tomorrow?

  7. by N Say
    Sat Jul 10, 2004 7:40 pm
    It wasn't just the Arrow, we had the Jetliner also, which predated any passenger plane that the Americans had. If Avro stayed together it would be the bigtime aircraft company instead of Boeing or Airbus or something.

    ---
    "These Yankee politicians are the lowest race of thieves in existence." - Sir John Sparrow Thompson

  8. by Dave Ruston
    Sun Jul 11, 2004 2:58 am
    Yeah, I agree with you guys, we`re pretty resilient and passionate at times, but it does seem like a pall of sadness fell over the country since the Avro Arrow treason. And this cloud still hovers over us. Yet we are also fed a load of bull, making it look as though we just need the Americans oh so badly. But i believe we can rise above this! But we`re going to have to go full tilt and want it badly, because the forces bent on destroying us are powerful and greedy!

    ---
    Dave Ruston

  9. by avatar whelan costen
    Sun Jul 11, 2004 8:01 am
    Yes I agree Dave, but I also think that as the truth starts to trickle out about this american admin; people might start to think about truth in politics and not except the 'party line'. Until we all start demanding answers and clarity from our elected officials we'll never know for certain what we are fighting or why. We all feel a certain danger in the air, but can we really put our finger on the enemy?

    ---
    If I stand for my country today...will my country be here to stand for me tomorrow?

  10. by Jim Callaghan
    Mon Jul 12, 2004 5:24 am
    Whelan, don't expect truth in politics.

    We have contempt for today's politicians.

    The politicians hold the voters in contempt as well.

    Harper was the only one to make a comment in the last few years that said "the voters have no idea what they are doing" or something like that.

    The saying power corrupts is incomplete.

    Powerlessness also corrupts, and forces many to think that voting doesn't matter. That is another reason for the apathy we see today.

    Sorry for going off-thread, I just wanted to make that point.



    ---
    "Arrogance in Politics is unacceptable"
    Jim Callaghan
    Minden, Ontario
    705-286-1860
    www.misterc.ca

  11. by avatar whelan costen
    Mon Jul 12, 2004 5:31 am
    Yes Jim, I don't expect it but that won't stop me from demanding truth, disclosure about our money and our interests. It is our money, it is our healthcare.They can jump on a plane and access anything anywhere with our money, I on the other hand am stuck accessing what is here. So I feel it is in my best interest to make sure it is accessible, it is here and that all of us can afford it.

    ---
    If I stand for my country today...will my country be here to stand for me tomorrow?

  12. by Anonymous
    Wed Jul 14, 2004 3:56 am
    How come the stock price dropped, with all the money this sale brought in. Is it because they are now a company with no new products or ideas?

    I invested a lot of money with Ballard because they looked like a real leader in the fuel cell industry. Now I have lost 60%



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