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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.

Audi tops Consumer Reports' brand rankings while Tesla leads domestics at eighth

Tesla supplanted General Motors' Buick division as the top-ranked US automaker in Consumer Reports annual brand rankings, though the electric-vehicle maker finished eighth among global automakers. Buick had finished atop CR's domestic car-brand list for three years before Tesla leapfrogged it. Scores were calculated from a combination of performance, owner satisfaction, and reliability. CR noted that Buick scored big on reliability but not so high on performance, while Tesla appeared to present the opposite case. Volkswagen's Audi division repeated as the best overall brand for the second straight year, beating out VW's Porsche unit, BMW, Toyota's Lexus division, and Subaru. Kia and Mazda followed those brands, while Honda finished ninth, between Tesla and Buick. Consumer Reports took results from 31 brands. Reliability issues related to the Toyota Tacoma helped drop that Japanese automaker out of the top 10. Take a look at CR's results for its Annual Brand Report Card here. That Tesla, Audi, and Porsche placed so high is topical, given some of the issues plaguing those automakers. Audi, Porsche, and their parent VW have been coping with the effects of the diesel-emissions scandal that broke back in 2015. The scandal has cost Europe's largest automaker billions of dollars, and forced VW to put a stop-sale on diesel-powered cars in the US in late 2015. And while the Tesla Model S improved from the "worse-than-average" label CR gave it in its 2015 Annual Auto Reliability Survey, the problematic falcon-wing doors on the Tesla Model X SUV pulled that model's reliability scores lower last year. Additionally, the Model X's climate-control system and door locks have also caused issues. Toyota and Lexus finished atop CR's reliability rankings last year. Related Video:

Audi A4 TDI plans scrapped for the US

It comes as no great surprise, but Audi of America president Scott Keogh told Automotive News that the automaker has ditched plans to offer the 2.0-liter TDI-powered A4 here in the US. Despite what you may be thinking, Keogh claims the decision isn't based on the ongoing talks between parent company Volkswagen and US regulators regarding the diesel emissions scandal. (Currently, Audi and Volkswagen are awaiting EPA certification for their diesel engines in the US.) The reason, he says, is that the demand for diesel sedans is low here, particularly when compared to the company's lineup of crossovers. "The marketplace speaks, we listen to the marketplace, and the marketplace told us, 'Go with SUVs,'" says Keogh, presumably in his usual straightforward, assuring manner. That's not to say, though, that one doesn't have an effect on the other. We've already seen that the scandal has had an impact on sales. Now, in a country where many were already under the assumption that diesel engines were dirty and noisy, it's no revelation that automakers are less than enthusiastic about expanding their grease-burning offerings. While the news is a bit of a bummer for those of us who have long hoped for more widespread diesel options here in the States (and for whom the whole Dieselgate debacle is downright depressing), there's still plenty to look forward to in terms of greener, cleaner Audis. At the A3 E-Tron event late last year, Keogh was bullish on EVs, promising that it was just the first step in a "substantial commitment." Audi's plan is, in Keogh's words, to "start with the plugs, come in with the full BEVs and then keep rolling from there." He repeated these assurances at the LA Auto show, saying that he expects 20 to 25 percent of Audi's sales to be plug-in vehicles by 2025. Plus, despite the whole diesel thing (which, to be fair, affects far fewer Audi cars than Volkswagens), Audi has been killing it lately. February sales marked a streak of 62 consecutive months of record sales in the US. For an automaker that is repeatedly saying that it believes the future is in electrification, this bodes well for us. Related Video: