GM's hydrogen fuel-cell fleet to arrive next year; mass production possible by 2011

CAMP PENDLETON, Calif. -- General Motors Corp. is taking hydrogen fuel-cell vehicles out of the research realm and into the production arena, slapping a Chevrolet badge on them and launching what Vice Chairman Robert Lutz calls a "moon shot" effort to reestablish GM's technology leadership over Toyota Motor Corp. and the rest of the world auto industry.
Lutz said GM may have affordable hydrogen-powered cars available in mass-production volumes by 2011.
And if the United States government doesn't step up to help build fuel stations and other infrastructure to speed the coming of the hydrogen economy, Lutz is confident that China will.
"Maybe the first place to have 1 million fuel-cell cars will be China," Lutz told the Free Press in an interview at Camp Pendleton on Thursday. "And then it will be like Sputnik," he said, referring to the surprise Russian satellite launch in 1957 that galvanized the U.S. space program into action, "and we'll be like, 'How'd that ever happen?' "
Today, GM is to announce that it will build the world's largest fleet of hydrogen fuel-cell vehicles in 2007 -- more than 100 Chevrolet Equinox crossover vehicles to be deployed in California, and the New York and Washington, D.C., areas.
Last week, GM allowed journalists to drive its most advanced hydrogen-powered vehicle -- the Sequel, now also sporting a Chevy badge -- at the 126,000-acre Camp Pendleton Marine Corps base on the Pacific Ocean between Los Angeles and San Diego. The Sequel, first shown as a concept vehicle at the 2005 North American International Auto Show in Detroit, combines a hydrogen fuel-cell propulsion system, lithium-ion batteries and electronic steering and braking in a package that delivers quick acceleration, nimble handling and a driving range of 300 miles between fill-ups. By putting the Chevrolet badge on its hydrogen-powered vehicles, GM is sending a message that the company is moving beyond its turnaround phase and is ready to reassert its technology leadership, said Larry Burns, GM's vice president of research, development and strategic planning.
"Chevy says high volume, high value, spirited performance, and it's GM's global brand. This is just the tip of the technology spear," Burns said.
Lutz, a former Marine, enthusiastically waved a cigar around during an interview after joining Marines on a ride in an all-terrain vehicle on the base.
"This technology is a game changer," Lutz, who heads GM's worldwide product development, said about GM's hydrogen fuel-cell and advanced electronic technology. He wants to put it into GM's production plans now -- "even if we have to defer some other things" -- with an eye toward having a mass market fuel-cell car perhaps as soon as 2011.
"I want to demonstrably do something in a big way before Toyota does," Lutz said, chafing at the rave reviews GM's top global competitor has received for its Prius gasoline-electric hybrid car.
"We need a moon shot," Lutz said, "to get out from the notion that Toyota is miraculous and GM is run by a bunch of aging stumblebums who wouldn't know technology if it hit 'em in the face."
Burns and Lutz said GM is ahead of other automakers in the power density, range and durability of its fuel-cell systems. The Equinox fleet, like today's Sequel, will have systems capable of lasting for 50,000 miles, but Burns said the next-generation system, now in GM's lab, will be capable of 150,000 miles.
David Cole, chairman of the Center for Automotive Research in Ann Arbor, said that difficult issues about how to deliver hydrogen fuel around the country may delay the advent of a mass market for fuel-cell cars beyond the time frame envisioned by Lutz and Burns. GM's fuel-cell vehicles rely on separating hydrogen from natural gas, but countries with abundant electricity -- from geothermal sources in Iceland or surplus nuclear power in countries like France and eventually China -- plan to mass-produce hydrogen by the environmentally friendly electrolysis process.
Cole said GM is on the cutting edge of alternative fuels technology.
"This turnaround has been unfolding for 12-14 years deep inside GM," Cole said, referring to improvements in the company's manufacturing efficiency and global product development planning. "You're really starting to see the attitude and body language changing at GM. There's more confidence today."
GM doesn't have all of its alternative energy eggs in the hydrogen basket. It's launching a two-mode hybrid gas-electric version of the Chevy Tahoe next year and boasts about 15 car and truck models equipped to run on E85, a fuel made of 85% ethanol and 15% gasoline.
"The auto industry has moved faster than the energy industry or the federal government on E85 and on fuel cells," Burns said, noting that capable vehicles are or will be ready before the infrastructure to deliver the fuel is.
Lutz said the United States will pay a competitive price if the country delays in supporting alternatives to imported oil.
And what if oil prices continue to decline, as they have in recent weeks? "It really doesn't matter because long-term there's the environmental thing," Lutz said. "And it's strategically important to create an alternative to oil.
"Energy supplies are uncertain and largely in enemy hands.
"Let's say gasoline goes to $1.25 a gallon, everybody in the U.S. goes back to huge sport-utes. Will we have made a mistake by betting on hydrogen? No, because the rest of the world will still be at $5 or $6 gasoline. ... The point is, we should not let the relative inactivity of the current U.S. administration on infrastructure become a reason to stop development of alternatives."
GM's massive cost-cutting efforts of the past year, coupled with signs that its vehicle sales and share of the U.S. market are starting to stabilize, have boosted internal confidence at the company, Lutz said.
As proof that GM is regaining its mojo, Lutz recounted how his boss, GM Chairman Rick Wagoner, reacted a few days ago to cautionary comments from another GM executive about the cost of some of GM's advanced technology programs and whether the company should hold back spending somewhat.
"Rick stepped right on him and said: 'That's what we've been doing for the last 20 years because of the burden of our legacy costs. Now we've saved $9 billion a year. Let's devote a significant portion of that to re-establishing GM's technology leadership, GM's fuel economy leadership, GM's design leadership.' "
Lutz, Burns and Wagoner don't suggest that GM is a sure bet to prevail in the automotive technology wars of the future. Germany's BMW is making a big investment in hydrogen-powered internal combustion engines. DaimlerChrysler has a strong position in diesels. Toyota's the current leader in hybrids, and Honda, Toyota and others also have fuel-cell programs.
But Detroit's big dog is definitely awake now. And barking like he's hungry.
Contact TOM WALSH at 313-223-4430 or twalsh@freepress.com.