Siemens Buys Ballard Hybrids

Germans showing serious interest in hybrids? THECARCONNECTION | by Joseph Szczesny (2006-12-21

In a sign German carmakers are getting more serious about hybrid vehicles, Siemens VDO Automotive has signed an agreement to acquire Ballard Power Systems' electric drive business in a deal valued at $4 million.

Klaus Egger, Siemens VDO Group vice president, said the acquisition of Ballard's electric drive unit will enhance Siemens VDO's effort to secure a place in the hybrid market. Siemens VDO, one of the world's largest automotive suppliers, has close ties to German automakers such as BMW and DaimlerChrysler, and is preparing to unveil its own hybrid system soon, company officials said Thursday after the Ballard deal was announced.

German companies have been critical of hybrid technology in the past because they believed it was too cumbersome but Toyota's success with hybrid technology has prompted them to re-examine their old assumptions, one Siemens VDO executive said recently.

John Sheridan, Ballard president and chief executive officer, said the company decided to sell off the electric-drive business after a strategic review of its operations. The sale will allow Vancouver-based Ballard to focus on its fuel-cell business and improve the company's overall financial position, Sheridan added.

Pending final approvals, the acquisition is projected to be completed in early 2007 and will include Ballard Power Systems Corp.'s research, development and manufacturing operation in Dearborn, impacting approximately 80 highly specialized personnel, representatives of both companies said.