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The cautious leader

Since 1981 DaimlerChrysler research has developed and equipped 11 vehicles with pioneering technology as mobile research laboratories. Numerous systems from these vehicle studies are now in series production at Mercedes-Benz

“From the technical side, our main challenge is to decide on the future fuel and therefore what we do with the combustion engine,” he says. The main challenges for the development of alternative fuel cars, he says, are technology and cost, which are in the hands of OEMs, but the second challenge, the infrastructure, will involve a wider spectrum.

Larry Burns, GMs vice president for research, development and planning, and a great advocate of the fuel cell car, argues that the infrastructure problems with regards the distribution of hydrogen is less severe than first thought. He says that the US needs around 11,700 refuelling stations and that to convert existing gasoline stations would cost around $12 billion, a figure that has to be compared with the $8 billion spent on the Alaskan pipeline 30 years ago.

“You could be negative with this," says Kohler, “but I am engaged on a consultancy basis to the European Commissioners (EC) and I see that it is willing to spend a great deal of money on the infrastructure.” The EC, Kohler thinks, is very positive about pushing ahead and laying the foundation for change, saying that spending money on research is a prerequisite to maintaining economic strength in Europe. The truth is that the US and Japan are highly involved and Europe cannot afford to miss out.

Cost might be high, but in the context of things, it is not too bad, says Kohler. In a discussion between the EC and its research and energy organisation a couple of years ago someone said that to build a hydrogen infrastructure would cost a minimum of €10-20 billion. “I was deeply depressed afterwards thinking ‘my God what a lot of money’, but the guys from the energy infrastructure were not surprised at all. They said this is only 30 per cent of the new electricity network around Europe. Since then I have been very optimistic.”

While there were some predictions that the fuel cell vehicle would be getting close to going into series production in the next few years, an unlikely event at the time of writing, Kohler is satisfied with the progress being made. “Compared to 1994 when we introduced NECAR 1 (New Electric Car), with its 800 kg worth of energy-producing componentry taking up the Mercedes van’s entire load space, only leaving room for the two front seats, and even the NEBUS (New Electric Bus) three years later, the world’s first bus ever to be driven by fuel cells, we have come a long way,” says Kohler. He cites NECAR 5, the Mercedes-Benz A-Class fuel cell car that can carry four people with all the technology packaged under the bonnet.

Another important milestone in recent years has been the deployment of the Mercedes-Benz Citaro fuel cell buses in various cities around the world. There are currently 10 public transport operators around Europe operating three buses each in different cities while three more have recently been delivered to the Australian city of Perth in real-world operations. Three more buses are due to be delivered to Beijing next year.

The Citaro fuel cell bus strategy has been a huge success says Kohler. “The organisation that runs these bus services in Stuttgart told me some of the customers will not board the regular buses, preferring to wait for as longs as 10 extra minutes to ride the Citaro bus. They identify it with the new combustion system, and the new technology is obviously attracting customers. It is a good sign that people admire the technology and see the benefits. This is the best publicity.”

He also refers to the fact that this year DaimlerChrysler will deliver 60 hydrogen fuel cell vehicles based on the Mercedes-Benz A-Class, to customers for field testing. First vehicles are already in operation in Germany, Japan, Singapore and the US. By the end of the year, the Stuttgart carmaker will have more than 100 fuel cell vehicles on the road, more than any other vehicle manufacturer.

Asked what the role of hybrids might be Kohler replies: “Hybrid technology is bridging the gap to fuel cells – I am convinced of the future of the fuel cell car.” The key, he says, is to create the right product. “It is about the challenge to bring the right innovation at the right time and, more importantly, for DaimlerChrysler to be the first so as to define our brand heritage. It is a pull not a push strategy.”

However, both Toyota and Honda has stolen a lead in hybrid technology, gaining a great deal of kudos in the process and while DaimlerChrysler has been working on alternative fuel strategies for some time, it is without a “show” product like the Toyota's Prius. Kohler denies that the Japanese are that far ahead, saying: “We are not late from the technological know-how. Up until now, we haven’t been able to offer our customers additional benefits in regards to weight loss, fuel reduction and driveability.”

“For me it isn’t the question of being too late,” says Kohler. “Are we confident that what we are offering today will still be good for the customer a few years down the line? Will they start complaining saying: ‘you promised me something that isn’t reality? You told me it halve the fuel consumption, yet when I look at my gas bill every month it is more than that’. We shouldn’t offer a technology that promises a great deal but at the end of the day doesn’t live up to expectations,” says Kohler reminding us that it could severely damage the brand.

DaimlerChrysler is putting more of its resources in diesel, striving for the breakthrough in North America that it believes must happen. It launched a diesel version of the E-Class at the start of the year and has been moderately pleased with the outcome. While conventional wisdom says that the breakthrough will come in the large SUV market, Kohler is quietly confident that the home-grown diesel fuel could be the key.

SunDiesel is a biomass-to-liquid (BTL) fuel that has been investigated by DaimlerChrysler for the last year. A study into such fuels was carried out by the EUCAR “Well to Wheel” study, which concluded that BTL fuels have the highest CO2 reduction potential, amounting to more than 90 per cent; they are thus considerably superior to biodiesel from rapeseed oil, with just under 50 per cent, which only makes use of part of the biomass.

As well as helping secure fuel supplies, biogenous fuels do not release any new fossil CO2 into the atmosphere. With a possible market share of 20 per cent, biofuels could make a significant contribution towards reducing CO2 emissions from road traffic. Whereas technical modifications to the engine are only effective in the case of commercial vehicles, BTL fuels have a positive effect in all road vehicles, since they can be used without the need for technical modifications.

“It is the cleanest, most environmental-friendly diesel that we know,” he says. “It is sulphur-free and produces fewer particulate emissions and pollutants than conventional diesel does. Its CO2 record is especially good – during combustion, it releases just about the same amount of carbon dioxide that its source — the tree that has been chopped into wood chips — absorbed from the air when it was growing. According to our estimates, SunDiesel could cover 20 per cent of all European fuel requirements.” The attraction to Americans is that it is not an import but could be seen as an “American” fuel.

“Our investigations carried out on the test rig have shown that there is even more potential in the interplay of BTL and the engine; following further optimisation to diesel engines, additional improvements in emissions can be expected.”

This is one of the competitive areas where car manufacturers should work together to influence the direction says Kohler. “We are open to common collaborations,” he says, “but how we translate the technology and innovate is our business. The fuel itself should be common business.”

When it comes to the hybrid/diesel debate in North America, Kohler does not believe it is an either/or situation and that there is a role for both. Hybrids are more suitable for urban areas where their full fuel-saving potential can be reached, he says, while diesels are more practicable for the open road, but he adds the proviso: “With cars that are driven in a mixed environment, you need a total balance, and diesel is the most attractive way to do this.”

While it would be good to think that the attraction of driving a cleaner car is from an ecological perspective, Kohler believes that the main driver is simply monetary. “Perhaps five per cent or so are interested in new technology as well as the environmental aspect,” he says. “It may give them a good conscience, but sooner or later it always comes down to cost which means we always have to that into account.”

Mobility negates the whole concept of helping the environment. In a way it is an irony that car manufacturers should invest time and money on a concept that is completely against the origin of the motor car. “That’s right,” says Kohler, “but these kinds of things are essential in order to protect our business for the future. It is a business plan with modified rules to the game and it is important to be aware of these rules and how you react to it.”