GM may take look at fuel cell spending
Struggling General Motors Corp. may take a harder look at its spending on fuel cell research and development.In a 40-minute Web-based interview with media outlets Tuesday, GM CEO Fritz Henderson said that fuel-cell vehicles remain “some considerable time away” from being commercially viable.
And when asked by the Democrat and Chronicle about how business challenges are affecting its fuel cell R&D, Henderson said that “while we need to be more efficient in this area, we are confident we can maintain the capabilities necessary to win in the market going forward.”
GM spokesman Alan Adler, however, said today that Henderson’s comments do not suggest any possible cuts in the automaker’s fuel cell spending.
“ ‘Efficiency’ can mean any number of approaches, including partnerships, etc.,” he said. “Right now, our focus is on creating a business case that would make fuel cell vehicles financially viable. As with all new technology, it is expensive in the beginning.”
The Detroit automaker employs about 300 people in Honeoye Falls at its fuel cell R&D center. That site has been building and testing prototype fuel cell powertrains.
Henderson did not respond to a Democrat and Chronicle question regarding the company’s plans to buy a number of Delphi Corp. auto parts plants around the nation, including the one in Rochester.
In the Q&A, Henderson said GM plans to cut its executive ranks by about 34 percent by year’s end and its salaried workers by about 20 percent. He also said that once-plunging U.S. and global markets for its vehicles have stabilized, “albeit at anemic levels.”
Responding to a question about how customers have reacted to the automaker filing for bankruptcy this month, he said sales have improved slightly each month since March “with our key messages on product and brand getting through.” He said June “looks like a similar trend.”
Asked about some political complaints that the federal government has been too hands-on in decision-making for GM, Henderson said “the government has been clear that it wants the management to turn around the company and expects the board to continue to exercise strong oversight.”
