Washington, D.C. — January 29, 2003 —  The Alliance of Automobile Manufacturers today praised President Bush's State of the Union address pledge to fund $1.2 billion in fuel cell "research funding so that America can lead the world in developing clean, hydrogen-powered automobiles."

Fuel cells hold great promise for greater fuel efficiency and cleaner emissions, generating twice the fuel economy of conventional engines. The only emissions they produce are water vapor.

But fuel cells are still in the research and development stages, with auto manufacturers racing to make them commercially viable, cost effective and appealing to consumers. Additionally, an infrastructure of hydrogen fueling stations will have to be in place across the United States in order to encourage broad marketplace acceptance.

The Alliance believes the President's commitment to research funding will quicken the development of fuel cell automobiles.

"Automakers commend President Bush's dedication to forging a government-industry partnership to develop fuel cells," said Alliance President & CEO Josephine S. Cooper. "Fueling infrastructure is one of the major challenges for making fuel cell vehicles commercially available, especially delivery of hydrogen. Proper government and consumer incentives will be needed to initiate this infrastructure. For environmental gains to be realized, consumers must be convinced that the new technologies will deliver the performance, function, safety and utility they desire."

Automakers have already made great strides in reducing emissions. Starting in 2004, U.S. cars and light trucks will run 99 percent cleaner than their counterparts in the 1960s. The fuel cell will help to drive that number even higher.

The Alliance of Automobile Manufacturers is a trade association of 10 car and light truck manufacturers who account for more than 90 percent of U.S. vehicle sales. Member companies, which include BMW Group, DaimlerChrysler, Ford Motor Company, General Motors, Mazda, Mitsubishi Motors, Nissan, Porsche, Toyota, and Volkswagen, employ more than 620,000 Americans at 250 facilities in 35 states. For more information, visit the Alliance website at www.autoalliance.org.