Saturday, October 24, 2009

Indian Automaker to License New York Plant to manufacture Electric Cars

auto transports
A newfound New York company plans to complete financing this year for a plant to manufacture electric cars and initiate rolling out the three-door, plug-in hatchbacks in late 2010 said by the company chief executive on Friday.

Paul Wimer, CEO of Bannon Automotive said at a news conference that Syracuse was selected over sites in Kentucky, Michigan and somewhere else because of its closeness to key markets and the "dogged pursuit" of the Freeport-based startup with local, state and federal officials.

Gov. David Paterson says that New York State is provide $6.76 million package of grants and tax incentives to Bannon, and U.S. Sen. Chuck Schumer says that he is trying to help Bannon to obtain $52 million in federal loans and loan guarantees.

Bannon will pay out $26.5 million for the plant.

The company has guaranteed an exclusive North American licensing deal with Reva Electric Car Co. of Bangalore, India, to assemble the NXR. Reva cars are currently sold across Asia and Europe.

Wimer said Bannon is finalizing selection of the plant site moreover the company is working to complete its financing by the end of 2009 and it hopes to begin producing cars by the end of the third quarter of 2010, he said.

The company will initially take up 100 workers, but expects to have 250 workers within three years. Wimer added that the plant will produce 15,000 to 20,000 cars a year.

If the company fails to produce the jobs it has promised, if this happens then the company has to pay back the money the state invests, plus interest, officials said.

The company will market no less than two versions of the NXR that will come with a range of options, including navigational and audio systems and climate control.

One model will operate on a lithium-ion-battery and it will reach a maximum speed of 65 mph with a range of 100 miles on a single household charge the cost of this electric car will be around $20,000 to $25000.Then we have the second city model which has the top speed of 50 mph, with a 50-mile range just by one charge of its cheaper lead-acid batteries and this vehicle will cost around $17000.

The company said it also elected central New York because of its physically powerful labor force, history of manufacturing, ties to universities along with commitment towards green technology. Syracuse is home to the state's Center for Excellence in Environmental as well as Energy Systems.


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