Energy Secretary Bodman, BMW CEO Purves, ABCs Cokie Roberts Headline Show Opening

THE 2006 WASHINGTON AUTO SHOW

[SIZE=3]Energy Secretary Bodman, BMW CEO Purves,

ABCês Cokie Roberts Headline Show Opening[/SIZE] [I]U.S. Pledges $119 Million to Advance Fuel Cell Technology[/I]

WANADAês vision to elevate The Washington Auto Show to the tier-one level on the industry circuit got off to a strong start Tuesday when Energy Secretary Samuel W. Bodman opened the show with a press conference at the Washington Convention Center. Secretary Bodman announced $119 million in funding and a research –roadmap” aimed at identifying and overcoming the technical and manufacturing challenges associated with the further development of commercially available hydrogen fuel cell vehicles.

After a quick tour of the show floor with Auto Show Chairman George Doetsch and WANADA CEO Gerard Murphy, Bodman told a large gathering of media that –investments in fuel cell and hydrogen research today will enable America to lead the world in developing clean, hydrogen-powered automobiles that will reduce our dependence on imported oil. This funding will help overcome technical barriers and bring hydrogen and fuel cell technology from the laboratory to the showroom.”

Bodman announced that the Department of Energy (DOE) will provide up to $100 million over four years for research projects to improve fuel cell components, and $19 million in federal funding over five years to projects that will do research on polymer membranes, an integral part of a hydrogen fuel cell system. The goal of this research is to improve performance and durability and to lower the cost of these technologies by 2010.

Bodman also unveiled DOEês Roadmap on Manufacturing R&D for the Hydrogen Economy, an 80-page document that addresses challenges to manufacturing, storage and production of fuel cell technologies and R&D solutions.

While hydrogen fuel cell technology has the potential to dramatically reduce vehicle emissions as well as Americaês dependence on foreign oil, barriers to commercialization continue to exist.Both the Roadmap and $119 million in funding announced seek to address these challenges over the next ten years with the goal of making vehicles powered by hydrogen available in showrooms by 2020.

This latest funding is part of the $1.2 billion Hydrogen Fuel Initiative by the DOE, which Bodman said has already lowered the cost of fuel cell technologies by 60 percent. Further information is available at: www.hydrogen.energy.gov/.

[I]Purves: Competitive Advantage vs. Regulation[/I]

–Competitive advantage sells cars. And more than ever, consumers care about safety, fuel economy and the environment,” BMW President and CEO Tom Purves told reporters at this weekês Media Day Luncheon. Carmakers know this, he added, –And that is why each manufacturer is striving to build the cleanest, safest, most economical car, commensurate with their brand values.”

Purves said no one technology will dominate the field, but BMW is betting on hydrogen power for the long term. In the interim he said various forms of hybrid technology will continue to emerge, as well as additional potential in the internal combustion and high performance diesel engines, which the company plans to bring to the U.S. market –sooner than later.”

As far as regulating the marketplace, Purves agreed that regulation can be a –force for good” but needs to –reflect common sense and be consistent.” He called CAFE standards a –blunt instrument,” and strongly opposed the move by some states toward fuel economy standards different from the federal standard. –The automotive industry is a national oneÄand should be regulated nationally. There should be one federal fuel economy standard,” he said.

In the area of safety, Purves pointed out that 75% of new cars are now available with head protection side airbags (50% more than 2004), and 51% are available with electronic stability control 600% more than 2003. With fatality rates dropping to historic lows, BMW will continue to develop safety technologies but the emphasis will be on accident avoidance, Purves said.

Purves noted that BMW is celebrating 10 years of Roadster production at its plant in South Carolina, which represents a total investment of $2.3 billion –the best validation of BMWês decision to start manufacturing in the U.S.,” he said.

Purves pointed out that the retail automobile business in the U.S. employs 1.129 million people with an annual payroll of over $50 billion. –And at the retail level, the car industry is an excellent place to work,” he added. Purves strongly advocated the many benefits of technician development spurred on by the AYES program which he chairs. This opened the door to post-lunch dialogue with area dealers active in technician training initiatives that WANADA sponsors around the Capital Beltway.

In closing, Purves said the auto industry today is –delivering a new generation of advances to the marketplace ã driven by demand from a sophisticated, informed customer. And in the race to sell our products to this consumer, competitive advantage remains the key to progress, and to success. I am truly optimistic that this industry’s best days still lie ahead.”

[I]Congressional Gala Well Attended and Received by Washingtonians[/I]

With ABC political commentator Cokie Roberts acting as emcee of the VIP segment of the Congressional Gala, members of Congress, their lieutenants, and city and regional leaders in attendance came together for a special showing of The Washington Auto Show.

Thousands of invited guests from government, industry, the business community and embassies turned out to benefit seven Washington charities, take in the new automotive technology, and just have a good time. See pages 3 and 4 for a photo tour of our best ever Congressional Gala.

Download Bulletin PDF