Swatch watchmaker makes gas-powered cars

The president of the world's largest watch company announced that it will produce cars powered by oxygen and hydrogen gas.

Mr. Nick Hayek, chairman and CEO of Swatch Group.

Nick Hayek, president and general manager of Swatch watch group in Switzerland, in the NZZ am Sontag newspaper, said Swatch has produced a test version of a car battery powered by liquid fuel and oxygen.

"People are using hydrogen and liquid oxygen as fuel. They are efficient fuels for combustion , " Hayek said.

Board members of Benelos - Swatch's subsidiary, which is responsible for making fuel cell cars - drove the test version.

"We do not know if the process of producing fuel cell cars is expensive," Hayek admitted.

Cars using fuel cells are not Swatch's first environmentally friendly motor vehicle. In 1997, the company entered into a joint venture with Daimler-Benz to build a two-seat electric car called Smart. But then Swatch sold out a stake in the joint venture to Daimler-Benz.

Some major automakers - including Honda, GM, Hyundai, Toyota and Daimler AG - have built cars that use fuel cells. However, the number of vehicles of this type circulates in the world very little.