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Will Electric Carmaker Bring More than Jobs to Elkhart Indiana?

Mary Catherine O'Connor | Wednesday January 6th, 2010 | 2 Comments

The recession hit Elkhart, Ind., especially hard.  In fact, the town became somewhat of a poster child of the recession, thanks to a news series produced by MSNBC. But a glimmer of hope emerged for Elkhart on Tuesday, when the Norwegian electric carmaker Think said it will open its first American assembly plant there.

The New York Times’ Green Inc blog reports that the Think assembly line should be up and running in early 2011, and its annual production could hit 20,000 cars by 2013. Most importantly for Elkhart, the plant should employ more than 400 workers when it’s fully online.

According to Elkhart Truth, the town’s local paper, Think plans to invest  more than $56 million in the new plant–some of which, will be in the form of a Department of Energy Advanced Technology Vehicles Manufacturing loan. In the first phase of build up, 100 new jobs are expected and the Elkhart Truth reports that these will pay an average of $16/hour.

But it’s not the news of the new plant, alone, that is making residents there hopeful. Rather, it’s the chance that the Think plant could be the harbinger of a manufacturing revival for Elkhart, which has a legacy as a manufacturing hub for a range of industrial products, recreation vehicles and even musical instruments. In fact, Elkhart’s manufacturing chops is one of the things that attracted Think to the area.

But there’s another important element (outside of the tax incentives that Elkhart offered) that attracted Think to the Indiana: it is the headquarters of EnerDel, parent company of Ener1, Think’s battery supplier, and a 31 percent equity stakeholder in Think. Plus, the proximity to auto parts suppliers throughout Michigan and the rest of the Midwest is another bonus.

Think plans on producing its two-seat electric hatchback, called City (which is already makes in Europe) at the new plant, and to sell it in the United States for about $30,000, after incentives. The car has a range of about 112 miles and the American version of the City will have a top speed of at least 70 miles an hour.

So what’s your take? Will the Midwest emerge as the manufacturing hub of electric transportation? And, if so, will it be able to compete globally?

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  • nickaster

    This is a great story – the midwest already has the infrastructure and the skilled labor to re-tool for these kinds of vehicles (not to mention other green manufacturing like turbines). I'd like to know how involved the unions were in these negotiations. My understanding is that the decision Tesla and Fisker made to locate in the west, despite higher costs, had to do with more cooperative unions, open to compromise. What's the scoop in Indiana?

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