BMW, GM No Longer Negotiating On Fuel-Cell Cooperation

In a new twist to the ongoing tale of automakers making and breaking technological alliances, BMW has confirmed that the company is no longer in talks with GM about a potential collaboration on fuel cells. The automakers however are still exploring other areas for cooperation.

Reports on the budding hydrogen fuel cell cooperation between GM-BMW last surfaced in December 2011. Since then, much seems to have changed with regard to the ongoing and prospective partnerships that BMW is working on. In late-June, it was announced that BMW is reviewing its 50:50 joint-venture (JV) with PSA Peugeot-Citroën, called BMW Peugeot Citroën Electrification. The JV is focused on hybrid and EV technologies with a research and development center in Munich (Germany). The need for a review came after PSA formed a broader alliance with GM, with the latter spending about $420m for a seven percent stake in the former. The medium-term aim for the cooperation is to save $2 billion by 2017, focusing on savings and synergies across logistics, purchasing as well as technology sharing.

While both BMW and PSA maintain that the review would not affect the companies’ existing cooperation on small gasoline engines, Peugeot admits that the GM alliance is likely to have an impact on ‘everything’ that the company does. BMW, meanwhile, is banking on its partnership with Toyota and reportedly aims to extend it to include fuel cells as well. The companies are already cooperating on lithium-on battery cells and a procurement agreement under which BMW is to supply Toyota Europe with 1.6L and 2L diesel engines, starting 2014. Reports also suggest that BMW and Toyota may expand the scope of the alliance to include lightweight technology and vehicle electronics.