USA: Elkhart could go from RV capital to EV capital

The so-called “RV Capital of the World” may soon be able to bill itself the “EV Capital of the World.” What a difference a letter makes.

Elkhart, Ind., about 155 miles southwest of Detroit, will soon be the new U.S. production center for Think, the Norwegian-based manufacturer that hopes to charge into the emerging market for battery-electric vehicles. The first of the maker’s two-seat City, an urban commuter car, will begin rolling off the new assembly line a year from now. If demand meets Think’s expectation, the company hopes to be turning out as many as 20,000 battery-electric vehicles, or BEVs, annually by 2013.

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The announcement, earlier this year, that Think would settle in Indiana puts the spotlight on the Midwestern state’s broader effort to position itself as a leader in a technology that many believe to be the future of the auto industry. Indeed, Gov. Mitch Daniels has declared it one of his goals to turn Indiana into “the electric vehicle state.”

Indiana isn’t the only state chasing that goal.

“I don’t know a state that isn’t aggressively trying to get this business,” including both California and Michigan, the latter of which is still considered the home of the U.S. auto industry, said David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.

“Indiana does have some advantages” though, added Cole.

That includes cash the state is willing to spend to get a business such as Think. After emerging from bankruptcy protection last year, the one-time Ford Motor Co. subsidiary decided it needed to build its BEVs in the U.S., rather than importing them from Europe, which would make the cars costly due to an unfavorable exchange rate. Think looked at a number of possible manufacturing sites but a key draw for Indiana was what chief executive Richard Canny cautiously described as a “competitive” incentive package — reportedly about $43 million in government assistance.

Canny was quick to add, however, “You don’t choose a location just based on incentives.”

Setting up shop in northern Indiana gives Think access to an enormous pool of trained labor, including many workers familiar with automotive manufacturing. The region has long been home to the nation’s recreational vehicle industry. But the virtual collapse of the RV market has left it with one of the nation’s highest unemployment rates and given Think a chance to pick and choose employees.

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“If you were to start an electric car company, I would tell you it’s a good place to start,” said Jerry Medlin, chief executive of LC3, a small producer of so-called neighborhood electric vehicles, modified golf carts based in Fort Wayne, Ind.
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Source: msnbc.com

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