Suggestions that hybrid electric vehicles are becoming an increasingly pertinent reality for automotive makers were given weight today, with the news that fuel-cell developer Ballard Power Systems is changing its approach to the industry.

The fuel-cell specialist has confirmed it is seeking to 're-define' its alliance with its automotive partners as they consider the best way forward for development.

Ballard president and chief executive Dennis Campbell said that the firm was now in discussions with Ford Motors and DaimlerChrysler AG over future plans.

Mr Campbell said they would be examining 'roles and responsibilities', to try to deliver the next generation light-duty fuel-cell program.

Ballard says that greater 'financial and operational flexibility' is a must as a result of changing trends in the industry.

“It's now become apparent that the automakers are probably going to have to play in that space,' Mr Campbell stated, referring to the rise in hybrids as a “bridge” between old and future technologies.

“We believe that fuel cells are the automotive propulsion technology of the future and we are committed to remaining at the forefront of next-generation fuel cell technology development. To do this, we must ensure that we respond to the changes in the marketplace and the demands of our customers by optimizing the structure and operation of our alliance.”

With hybrids essentially requiring the same 'architecture' as fuel-cell vehicles, Campbell said the partners involved need to work together at development stage to ensure compatibility and success.

Ballard says it is also now examining the potential for licensing its technology to partners, with the additional consequence that the acceptance of fuel cells is accelerated.

However, the firm says it is still too early to conclude that the fuel cell market has succeeded, with the flexible approach to new automotive technologies granting it 'more elbow room' to cope with changing market trends.

The firm said it had seen profits dip slightly in comparison to previous year, but confirmed details of a number of successful fuel cell projects, including a number of bus fleets.