Volkswagen has dropped diesel!
I don’t think the German giant will never officially say goodbye to their beloved kerosene cars.
But, just how they’ve turned diesel engines into road trip wonders, the automaker’s next move could also be a major efficiency game changer… and put some serious dough in your pockets.
You see, the company just signed an $80 million contract (and potentially hundreds of millions more) with Ballard Power Systems (NASDAQ: BLDP), a major player in the fuel cell world, to produce a new line of autos for both the Audi and VW division.
Here’s how the stock responded:
VW is revamping its green line, yet again!
I know. Gas prices are currently at rock bottom prices. So low that Suzie Homemakers are buying up SUVs like it’s 2004. But it isn’t going to last. And VW – along with nearly every other automaker – knows it.
They know oil prices can’t and won’t stay this low forever. That it’s all Saudi price suppression. And this little lull will soon be over faster than a Viagra pill in a senior citizen, driving oil – and gas – prices back to the $4 range and beyond.
But why are they moving to fuel cells vs electric cars? Aren’t electric cars already gobbling up the alternative transportation market share?
Yuppie Joe and his Volt
Personally, I think electric cars will play their part. Around Baltimore, plug in stations already take prime parking, pushing the handicap spots back to make room for yuppie Joe and his Volt.
But their day came a little too early. And with a few too many problems… things like short battery life, long charge periods, and limited ranges. Although, in all fairness, Elon Musk and Tesla Motors (NASDAQ: TSLA) are changing that paradigm.
And while electric cars might still be the true future, fuel cells and fuel cell makers are still thriving on high expectations for fuel cell vehicles.
It’s certainly something investors should be following.
In fact, my friend, Chris DeHaemer, the investment strategist behind Crisis & Opportunity, saw this coming and helped readers knock out 609% on the fuel cell company Plug Power (NASDAQ: PLUG).
Meanwhile, according to Business Wire, the fuel cell industry is projected to balloon at least 19% as a whole through 2019.
So, for now, I say don’t ignore electric, but get more focus on fuel cells in 2015.