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Audi buys Ballard fuel cell patents for $80 million

While some auto companies (e.g., Toyota and Hyundai) are giving away some hydrogen fuel cell patents, others are paying a pretty penny to gain access to the H2 tech. Audi announced today that it has purchased a suite of fuel-cell patent from Ballard Power Systems. The deal between Volkswagen Group and the Canadian fuel cell pioneer is worth over $80 million US. Unsurprisingly, the value of Ballard's stock shot up about a dollar (to $2.61 as of this writing) on the announcement. VW and Ballard will also extend their development agreement, originally scheduled to end in 2017, to March 2019, and possibly another two years after that. Thus far, the deal – which revolves around the "design and manufacture of next-generation fuel cell stacks" for VW's H2 demonstration program – and Ballard says it is a leader in "critical areas of fuel cell product design – including the membrane electrode assembly (MEA), plate and stack components – along with certain testing and integration work." At the LA Auto Show last fall, VW showed off a Golf SportWagen and a Passat with a hydrogen hybrid HyMotion powertrain as well as a Audi A7 Sportback H-Tron Quattro. Audi buys fuel-cell patents from Ballard Power Systems Development agreement with Ballard extended until 2019 Audi's Head of Development Prof. Hackenberg: "The entire VW Group will use these patents." Ingolstadt/Burnaby, February 11, 2015 – AUDI AG has acquired a package of patents relating to fuel-cell technology from Ballard Power Systems Inc. In addition, the Volkswagen Group has extended its cooperation with the Canadian clean energy company until 2019. The purchase of these patents will provide new impetus for the development of fuel-cell drive systems at Audi, VW and the Volkswagen Group. As explained by Prof. Dr. Ulrich Hackenberg, Member of the Board of Management for Technical Development at AUDI AG and responsible for the steering of the development departments of all brands in the VW Group: "Audi is acquiring these strategically important patents for the entire group and will make them available to all the brands. In this way, we are securing crucial expertise that will provide new impetus for the further development of this technology." Ballard Power Systems Inc. is based in Burnaby, Canada, and is one of the world's leading companies in the technology of proton exchange membrane fuel cells.

In wake of Volkswagen scandal, cheating may actually get easier

The three crises that rollicked the auto industry in recent months – a rising death toll related to the General Motors ignition-switch defect, the Jeep Cherokee hack and now the Volkswagen cheating scandal – all have one thing in common. Outsiders discovered the problems. In the new matter of Volkswagen rigging millions of cars to outsmart emissions tests, researchers at West Virginia University and the International Council on Clean Transportation first spotted irregularities. In the hacking of a Jeep Cherokee, it was independent cyber-security researchers Chris Valasek and Charlie Miller who found and reported cellular vulnerabilities that allowed them to control a car from halfway across the country. And lest we forget in the case of General Motors, it was a Mississippi mechanic and Florida engineer who first made connections between non-deploying airbags and faulty GM ignition switches that had been altered over time. They worked on behalf of Brooke Melton, a 29-year-old Georgia woman killed in a Chevy Cobalt. "That argument is built on a whole string of trusts, and now it is clear that we should absolutely not be trusting." - Kyle Wiens Amid the Volkswagen scandal, the role these independent third parties played in unearthing life-threatening problems is important to highlight, not only because it shines a light on the ethical indifference corporations paid to life-and-death problems of their creation. The role of the independents is noteworthy because, just as their contributions never been more relevant in protecting the driving public, they could soon be barred from the automotive landscape. Since May, a little-known but critically important process has been playing out before an office within the Library of Congress, which will soon decide whether independent researchers and mechanics can continue to access vehicle software or whether that software, which runs dozens of vehicle components, is protected by copyright law. The Digital Millennium Copyright Act criminalizes measures taken to circumvent security devices that protect copyrighted works. When the DMCA was signed into law in 1998, it was intended to protect the likes of movies from being pirated and companies from ripping off software. At the time, few had a clue that some 17 years later cars would essentially be mobile software platforms run by millions of lines of code that potentially fall under the law's jurisdiction.

CARB has 20 days to confirm VW's 3.0-liter TDI emission fix

VW's diesel scandal has been in the headlines since last September, but solving the problem it proving difficult. Volkswagen Group has submitted a proposal to the California Air Resources Board (CARB) and the Environmental Protection Agency (EPA) to fix about 85,000 vehicles with the 3.0-liter diesel V6 in the US, Reuters reports. CARB now has 20 business days to test if the plan actually reduces emissions. If accepted, VW could finally begin a recall and end the stop sale on vehicles with these engines. In a statement, CARB pledged to, "respond following a thorough and complete review to make sure the plan addresses the presence of the illegal defeat device and follows the necessary environmental, vehicle and public health and safety regulations." Neither CARB nor the EPA outlined the proposed repairs, but Porsche CEO Oliver Blume already suggested the fix for the engine in the diesel Cayenne. Examples from 2013 and 2014 allegedly need a new catalytic converter and software update, and those from 2015 and 2016 only need the improved code. It's not yet clear whether this procedure would work for all models with the 3.0 TDI. While the EPA issued the notice of violation against VW's 2.0-liter four-cylinder diesel in September, the first one for the 3.0-liter V6 came in early November. By the end of the month, the agency broadened the scope to about 85,000 vehicles, including some examples of the VW Touareg, Audi A6, A7, A8, Q5, Q7, and Porsche Cayenne. The affected companies issued stop sales on new models with the engine. Audi eventually admitted to regulators that it didn't disclose three auxiliary emission control devices in the powerplant's code and promised to develop a software update to fix the problem. CARB gave the automaker 45 business days to submit the proposed solution. If accepted, this repair would allow VW Group to end part of the emissions scandal, but there's no guarantee the regulators consent to this solution. Just a few weeks ago, CARB looked at the automaker's plan to fix the 2.0-liter TDI and rejected it, claiming a lack of detail.