Hy-Drive suffers fallout from manufacturing defect
MISSISSAUGA, Ont. — Hy-Drive Technologies yesterday admitted a design flaw in its hydrogen-injection system for diesel-powered engines has been costly.
The system is designed to improve fuel efficiency and reduce emissions by injecting small amounts of hydrogen into the combustion chamber of a trucks engine. CEO Tom Brown was quoted in todays Toronto Star as saying the defect is not widespread, although it caused some on-board generators to crack after extended use. Shares in the company dropped 30% on the news.
“Very few of them are not working,” Brown told the Star. “But we know there will be failure down the road and we took preventative action. It’s going to set our revenue projections back, obviously.”
The manufacturing defect affects all units built before June, 2007, the company says.
“This defect will require the company to reassess the value placed on existing inventories of completed and work-in-process units, together with associated component parts,” Hy-Drive announced in a release.
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