After more than five years of setbacks, Albert Lam, CEO of Detroit Electric, unveiled the company's first electric car in Detroit and pledged to bring more than 200 employees to Wayne County.
"Tonight, you bear witness to the rebirth of the Detroit Electric brand," said Detroit Electric founder and CEO Albert Lam said Wednesday at the Fisher Building in downtown Detroit before revealing the SP:01 to a crowd of several hundred.
Lam, 50, left luxury sports car manufacturer Lotus in 2008, and has been developing the SP:01, an all-electric sports car, since then.
The car, built off of the Lotus Elise platform, has a curb weight of 2,403 lbs, the SP:01 accelerates from 0 to 60 miles per hour in 3.7 seconds and has a top speed of 155 mph. It will cost about $135,000 and is expected to have a range of about 100 miles on a full charge in normal driving conditions.
"It's the fastest pure electric production vehicle on the planet at the moment," Lam said.
Still, the venture faces major hurdles. Automakers continue to improve the fuel efficiency of conventional gas-electric cars.
Consumers have grown comfortable with paying $3.50 to $4 per gallon, and a variety of all-electric and plug-in hybrid cars much less expensive than the SP:01 are not selling well. In addition, the cost of battery technology is not dropping significantly.
A newcomer such as Detroit Electric will face questions about quality and affordability as more established electric vehicle startups have discovered.
Brett Smith, research analyst for the Center for Automotive Research in Ann Arbor, said Detroit Electric could be successful if it keeps its business costs low.
"If you can sell a small volume of cars with incredibly low overhead, and people who buy them love them, there is a market out there," Smith said. "It's a long shot, but any start up is a long shot."
Previously, the company said its battery supplier is South Korea-based Kokam. On Wednesday, the company said it has two battery suppliers and is still in negotiations with one of the companies.
Lam said the company plans to make 999 Detroit Electric SP:01's, and then will launch redesigned version after that along with additional models.
The car was developed in Lochem, Netherlands, but the company's headquarters is now in Detroit.
While only about a half-dozen employees work out of the Fisher Building now, that number will grow soon to about 30. The company also expects to select a U.S. manufacturing site in Wayne County by the end of the month and expects U.S. production of the car to begin by the end of the summer.
The company's name is drawn from another Detroit Electric, which made electric cars in Detroit about 100 years ago.
Wayne County Executive Robert Ficano said he expects Detroit Electric's employment will grow to about 200 as it selects a production site and establishes a local research and development site.
"We pledge to serve this community with honor, and Detroit, we will make you proud," Lam said.
