December 22, 2006
Ballard to sell E-Drive operations to Simens VDO
Vancouver, British Columbia – Vancouver’s Ballard Power Systems has announced that it has signed an agreement to sell its Michigan-based electric drive operations to Siemens VDO Automotive Corporation for approximately US$4 million. The company says the electric drive operations are not core to its fuel cell stack strategy, and the technology application has limited revenue potential with high cash consumption.
With the sale, Ballard will reduce its operating cash consumption by approximately US$10 million per year. The transaction is expected to close in January 2007.
“This transaction, the result of an extensive strategic review process, is consistent with our focus on our core fuel cell stack business and our commitment to continue to improve Ballard’s financial performance,” says John Sheridan, President and CEO of Ballard Power Systems. “Siemens VDO is an excellent fit with the Dearborn electric drive operations. Together with our Alliance partners, DaimlerChrysler AG and Ford Motor Company, we look forward to working with Siemens VDO on next-generation fuel cell vehicle development programs.”
In 2005, Ballard sold its German-based automotive system integration division; the company says its corporate structure and scope are now fully aligned with its core fuel cell stack strategy.