ch4 (04/30/00)

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Renault Set to Join Delphi-BMW Alliance to
Develop Fuel Cells

London, May 1 (Bloomberg) -- Renault SA, France's second- biggest
carmaker, is joining Delphi Automotive Systems Corp. and Bayerische
Motoren Werke AG's year-old fuel cell alliance, the companies said.

Delphi, the world's largest autoparts maker, and BMW, the
Munich-based luxury carmaker, joined forces last year to develop a
fuel cell system for use as an auxiliary energy source on gasoline-
powered BMW cars.

Renault is likely to offer fuel cells in its cars, along with BMW. Fuel
cells combine hydrogen and oxygen to create electric power, leaving
water as a byproduct. Carmakers see them as a clean alternative to
gasoline engines as governments adopt stricter anti- pollution in North
America and Europe.

The companies will unveil the new three-way venture at a press
conference Tuesday in Paris. Under the BMW-Delphi alliance unveiled
a year ago, Delphi is developing a solid-oxide fuel cell system. It will
provide power for the electrical system of a BMW car powered
primarily by a gasoline engine. They haven't said when the fuel cell cars
will be sold.

Delphi has said fuel cells have potential among automakers worldwide
as both a primary and auxiliary power source for cars.

DaimlerChrysler said this month it would build 20 to 30 fuel-cell
powered buses by 2003, adding that it will be the first automaker to sell
the fuel cell vehicles.