Daimler's Zetsche Betting on Fuel Cells, With Battery-Electrics, Hybrids For Interim

Daimler chief Dieter Zetsche says he's still is betting on a hydrogen future for the automobile.

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Mercedes B-Class fuel cell cars are being used in long-term road tests in Europe and U.S.

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But in a round-table interview with reporters form a variety of media including (subscription only) Automotive News during the recent Frankfurt Auto Show, Zetsche said that hybrids and battery-electric cars will be long-term interim technologies until hydrogen fuel cell cars and hydrogen fueling technology are ready for market.

Daimler is investing heavily in both electric and fuel cell technologies, he said, and has banded together with other German automakers to boost hydrogen fueling technology.

Asked if Daimler would consider four-cylinder engines for its Mercedes-Benz cars as U.S. fuel economy regulations tighten, Zetsche said that he wouldn't rule out the option .

He also said,  according to an interview transcript posted today by Automotive News, that he sees a continued weak U.S. market for luxury cars for several years and that the Chinese market is likely to step in to gill the void.

Fuel efficiency for luxury cars is becoming a necessity rather than an afterthought, Zetsche said, adding that he is convinced that many customers continue to want a comfortable and spacious car but "would not like to be called callous by their neighbor because the fuel consumption is astronomic."

Daimler - indeed, the entire auto industry,-  is at the "tipping point now" for electric cars, he said, pointing out that hydrogen fuel cell cars use all-electric drivetrains.

He said he believes battery-electric will continue to have range restrictions and lengthy recharging times, and that fuel cell cars can eliminate both "disadvantages."

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The company isn't avoiding hybrid technology, as it its recently shown  Vision S500 plug-in hybrid demonstrates.

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But both battery- and hydrogen-electric cars will need major fueling infrastructure improvements to be commercially viable, Zetsche said.

And while he is betting on hydrogen fuel cells emerging as the eventual preferred technology, he's not forgetting that fuel cell cars need advanced technologies batteries, too.

Despite the recent pronouncement by Toyota Motor Corp.that lithium-ion batteries are too risky still be be put into use, Daimler is using them and will continue developing them, he said.

"We are the OEM with the most battery patents. We have a stake in a cell company. We have a majority in a battery company. So we have the technology and capacity to have as many batteries as we want. We are the only car manufacturer with a lithium-ion battery in series production. This may be a risk for some other manufacturers, but certainly not for us."

Still, he believes the batteries will best be used by fuel call cars, not battery-electric vehicles.

"All of these technologies come with major incremental costs," he said, "The chances appear better on the fuel cell than the battery electric side. But we still have to work hard to get the cost [closer] to the range of conventional vehicles. It will clearly take longer for the battery to get there -- if ever. This will be a gradual changeover from one technology to the other. In between, there will be hybrids and plug-in hybrids for quite some time."

Daimler intends to use all the technologies to their fullest, he said, and has "set up a clear modular system which allows us to play these different cards with a combined approach. It is extremely risky to forget about one of these directions and bet that the ball will go into the other direction. The most likely solution is that you will see these solutions living parallel to each other for many years to come."

Posted by

John O'Dell October 5, 2009, 2:55 PM

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