Professional Documents
Culture Documents
Q: Will your vehicles address market demands for efficiency and speed / power?
A: Most certainly. Our entire vehicle strategy is to introduce Pure Electric Vehicles that don’t ask
customers to compromise on what they have to expect from main stream vehicles – performance, safety,
quality, reliability and styling, all combined with interiors that offer all the space and amenities the market
demands.
For the driver, Detroit Electric’s electric drive offers a highly responsive driving experience with instant
torque. Most importantly, our strategy is responsive to global market driving needs. As a mobile society,
motorists tend to drive a certain distance daily, on average not more then 64 km (40 miles) a day in North
America for example. However, they also want the freedom to drive for longer ranges while avoiding a
perceived inconvenience. Detroit Electric’s cars will meet and exceed these needs by offering significant
range, 180km (112 miles) in our city-model and 320km (198.83 miles) in our extended-range model, both
of which can be conveniently re-charged within a period that meets motorists’ needs.
Q: At the end of the day, is the Electric Vehicle just a pipe dream, or will it welcome the dawn of a
new era in global transportation?
A: The question really is: how ready is society to adopt change? We believe this change has been thrust
upon us due to global warming and other environmental issues. Can we afford to continue ignoring the
signs that we must arrest the degradation of Planet Earth or do the right thing and adopt for survival? We
are providing an alternative to environmental pollution. The public is free to choose, but an option such as
the electric vehicle must be available to the mass market for consumers to make this choice.
As far as the automotive industry is concerned, Detroit Electric’s vehicles will be the catalyst for change.
We want every Electric Vehicle manufacturer to be successful to spur competition and growth in the
industry. Detroit Electric is the alarm clock. When we create a competitive landscape for our electric
vehicles, others will wake up and follow our lead.
The vehicles will be able to travel from 0 to 100km/62.1miles in less than 8 seconds, and offer a superior
driving experience, thanks to our state-of-the-art electric flux motor which can deliver 75kw of continuous
power and with a peak power of 150kw. This is equivalent to 200 brake horse power (bhp).
Maximum Torque is 350 to 380 Newton metres (Nm). Top speed is limited to 180km/111.9miles per hour
for both variants although they can go faster.
Q: Are you concerned about entering the market during a global economic downturn?
A: Not at all. Detroit Electric is introducing Electric Vehicles that are competitively priced, reliable and
meet all existing quality and safety requirements. Our vehicles will also outperform internal combustion
engine (ICE) vehicles, but without the carbon emissions. This affords consumers many advantages and a
clear choice, allowing us to break into the market.
Furthermore, our products will cut across all demographics. Some 12 million vehicles were sold in the US
alone in 2008. Of this, 3 million vehicles were sold in the popular C-segment (midsized sedan) which is
what we are going to produce. We plan to retail our vehicles in the US, EU and Asia within the first 12
months of production and estimate sales of 40, 000 vehicles in the first year.
Q: What are the key barriers that previously hampered mass production of Electric Vehicles?
A: A combination of problems had contributed to these barriers. Automobile makers, for instance, have
invested billions in manufacturing plants and developing engine technology. They are also tied up to
excessive labor, health and pension schemes apart from outdated dealer networks which cost them
hundreds of millions of dollars annually.
So the socio-economic implications of any divestment by these traditional automobile makers would be
massive.
Add to this, the “brand legacy” in engine technology that some automobile makers have built their
reputations on. Imagine what will happen to them if they lose their advantage in having such a legacy of
technological advancement in their engines? What will their brands be worth?
Q: What factors compelled Detroit Electric to build its business on Electric Vehicles?
As our name indicates, we have a legacy in Electric Vehicles and believe they are the future of the
industry, not only in terms of vehicles but also in manufacturing. Today, the Electric Vehicle is a
revolution led by consumers and dedicated engineers who understand its potential.
Technology, cost structure, inexorably rising world oil prices, global warming, and environmental pollution
have made it both timely and practical to develop and mass produce Electric Vehicles. The world market
is ready for Detroit Electric in terms of social awareness, and best of all, the EVs we are producing are
not limited to speed and range restrictions which force consumers to compromise their quality of life as it
relates to their transportation needs.. Instead they are true performance vehicles.
We believe Electric Vehicles are the future and are willing to work with other original equipment
manufacturers (OEMs) to further develop this technology.
We do not consider hybrid vehicles (series or parallel) as competitors, because they run on electricity for
a limited range only before switching to internal combustion. In short, they too pollute the environment,
hence the argument that there is little difference between hybrid vehicles and full-time internal combustion
vehicles.
In Denmark for instance, there is a 150% pollution tax, and in Holland the pollution tax is 40%. In the US,
Federal and State incentives are provided, such as the USD7, 000 tax rebates from the Federal
Government for those owning environmentally-friendly vehicles.
Asia, with a strong focus on China, is also important to our efforts as we look at growing demand and the
need to reduce emissions.
Q: This figure is small compared to the vast sums that traditional auto makers spend on
developing an internal combustion engine. Why is that so?
A: First and foremost, Detroit Electric’s business model is different from the traditional industry models.
We concentrate our funding on research and development of the motor, vehicle design, marketing and
distribution, while utilising original equipment manufacturer’s (OEM) proven vehicle platforms. We also
outsource production of the vehicle itself, an approach which allows us to avoid the capital intensive
areas that have traditionally plagued new entrants to the automotive industry.
Q: Do you plan to set up your own manufacturing plant for Pure Electric Vehicles in the long
term?
A: Yes we do, but this is a long term plan and not something we foresee doing in the immediate future.
More importantly, unlike some other automotive manufacturers, we will listen to our core partners – our
distributors and customers. We will engage them in a relationship based on an open and active dialogue,
keeping in line with our corporate culture.
Q: Do you already have an order book? If so, how many vehicles do you plan to roll out?
A: Currently, we do not have an order book as our plan is to soft launch our vehicle in the last quarter of
2009. For now, we are concentrating our efforts on production planning and homologation for the US and
European markets. Our order books will be filled beginning in June 2009, when we launch our vehicles in
Europe.
We will roll out 40,000 vehicles in 2 models in the first year and increase this to 315,000 vehicles on or
before our fifth year of production.
Q: Proton is a new brand in the global automotive landscape. It has only a 20-year history and that
too not a very successful one in a global sense. So why did Detroit Electric pick Proton as your
partner rather than a global player with a ready distribution network?
A: If you were to do an in-depth study of Proton, it would demonstrate that the company is progressive,
maintains very high production standards, and manufactures high quality vehicles. Proton is Malaysia’s
largest investor in R&D and product development, having spent USD1.2 billion on R&D between 1993
and 2003.
The Proton Persona, which is one of the models we will be utilizing, was named Malaysia’s Best Model of
the Year in the 2008 Frost & Sullivan ASEAN Automotive Awards.
Detroit Electric chose Proton due to these factors, their state-of-the-art and readily expandable
manufacturing facility where 60% of its production line is automated, its production costs efficiency and
experienced stable workforce.
Also, it is important for customers to drive, feel and live with our products to truly experience them. We
are going to produce vehicles without compromise but at the right price points. We have no doubt
consumers will quickly realize and respond to the benefits of driving safe, high quality, reliable and
affordable Electric Vehicles. Apart from these, we will pioneer charging stations for Electric Vehicles like
those currently being developed in Holland. We will also focus on battery technology in terms of charging
methods, alternative energy or different types of battery technology so generation of electricity is
improved, environmentally friendly and progressively more efficient.
Q: What is your business strategy and expansion plans over the next three years?
A: We will focus on what we are good at – further developing our technology – while continuing to
outsource the manufacturing of our vehicles. In the next 10 years, we plan to develop at least 4 vehicle
platforms – full size, compact, sub-compact and a small vehicle to progressively increase our range of
models.
Q: Do you plan to design and manufacture your own vehicles as an original equipment
manufacturer (OEM)? If so when?
A: Yes. We intend to design our own vehicles in the second quarter of 2010.
Q: How many years will it take before you see a return on your investment?
A: Our unique business model, where we are really a technology, marketing and distribution company
allows us to achieve a very low break even point right from the beginning. That being the case, we
expect a return on investment within a very short span of between 12 to 18 months.
Q: How will Detroit Electric’s progression into an OEM affect the Proton deal and others like it?
A: The deals we sign with Proton and others will continue. However, there is a need to manufacture a
dedicated Electric Vehicle from the ground up. In using other manufacturers’ internal combustion vehicle
platforms for our Electric Vehicles, some parts become irrelevant.
Furthermore, in the future Electric Vehicles should be purpose built, as various design issues will crop up,
such as the optimum location for the battery, controller and motor.
This facility is the epitome of integration, with a workforce of 2,000 people combined with 180 precision
robots, making it the most advanced and exemplary manufacturing and assembly facility in Malaysia and
one of the most modern in Asia.
Proton Tanjung Malim operates with a 60% automation level, reducing operational costs by about 20%
and man hours per unit by 30%. This makes it an extremely efficient facility.
Q: Will rechargeable cars lead to building more coal and nuclear power plants?
A: No, reports from energy analysts and world renowned scientists all indicate that the infrastructure is
there to fully support Electric Vehicles even with the projected increase in market shares electric cars will
enjoy. They will not increase the need for additional generating capacity for decades to come, and during
that intervening time we can shift to cleaner, renewable power options that will result in less
environmental harm than currently used fossil fuels.
In the US alone, the existing grid's off-peak capacity for electricity generation is sufficient to power 84% of
commutes to and from work by cars, light trucks and SUVs, without building a single new power plant if
people drive plug-in hybrids, according to the US Department of Energy.