British Columbia Innovation Council

Ballard’s Fuel Cell Bus Project: Next Stop – Changing the World

This case examines how a director made crucial decisions with company-wide repercussions on revenue and status. It was July 8, 2008. Paul Cass, director of material handling and business markets, was preparing his report for John Sheridan, CEO of Ballard Power Systems. Ballard, one of BC's highest profile companies and most sought-after employers, had increased shipments of all its major hydrogen fuel cell products in 2008.

Also, the zero-emission bus market project for the Vancouver/Whistler 2010 Winter Olympics presented an opportunity for Ballard to cement its position as the leader in this technology. Yet despite the positive outlook, Cass still had some tough decisions to make before he sent his projections to Sheridan.

He was mindful of the need to burn the company's cash reserves slowly. At the same time, he needed to ensure that his product areas kept Ballard Power Systems ahead of the curve. The 2010 Vancouver/Whistler Olympic and Paralympic bus program was critical for showcasing the viability of the company's products and vision. Should the bus market suddenly take off, Ballard Power Systems needed to be ready to mass-produce its fuel cell modules. However, if progress in this market was as slow as expected, Cass needed to concentrate on improving the efficiencies and lowering the costs of the material handling products. He needed to determine how this translated to capital and human resources for the two divisions under his control. His decisions would not only impact production and the company's short-term revenues, but depending on how the industry evolved and how his divisions were poised to address new developments, they could determine whether the company continued to be perceived as the leader in the field, or simply a provider of components.

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