The BIG news today here in America is March 30, 2009 will be one of the "defining moments" in the history of both General Motors and Chrysler. President Barrack Obama ordered the two U.S. carmakers to either come up with far more aggressive restructuring plans than heretofore offered, or else... He gave GM 60 days to comply, including requiring Rick Wagoner to resign (he left with a reported $20 million retirement package) as Co-chair and CEO, while giving Chrysler LLC just 30 days to complete its proposed alliance with Fiat. The U.S. government will provide both with sufficient funding to remain solvent within the proscribed windows, but added that bankruptcy is not out of the question for either.
Wagoner, whom I met at the Detroit Auto Show last January, wasn't the only auto executive handed his pink slip over the weekend. In France, the board of directors at PSA Peugeot Citroen, asked for and received the resignation of Christian Streiff, their combative CEO.
But it is little Heuliez, which defines itself as specialists "in the turnkey development and production of niche vehicles, derivates and Body In White modules" that is of particular interest to this blog. The company that began in 1920, has flirted with insolvency for at least the last couple years. It is now again on the brink, just as it rolled out and began taking orders for the Friendly pictured above. The all-electric car can carry three passengers with the driver sitting in the middle, somewhat akin the same approach taken in the Rinspeed iChange.
Reports from France (courtesy of William Tahil who provide me with the translations) reveal that the government is proposing to give the company the equivalent of €10 million from its Strategic Investment Funds, but with three key provisios:
- that there is a realistic business plan
- that other investors are sought out
- the group shareholders be required to participate in the refinancing
One of the most vocal proponents for government aid is Segolene Royal, the Socialist party candidate for President who ran unsuccessfully against Nicholas Sarkozy. She criticized the government's slowness to respond with support for a company that has developed such innovative -- and yes, maybe a bit quirky -- technology. According to Tahil's translation of the Europe1 article...
We (the Poitou Charentes Region) are putting in €5 million but we are also guaranteeing half the bank loans to help Heuliez get through the crisis. And above all, we launched the initiative which enabled the company to create the Friendly EV. How can you explain the State being so slow to act on a car manufacturer successfully converting to new technology, ready to market an electric vehicle with a range of 200 kms at a cost price of 1 euro per 100 km (60 miles)?
Barack Obama has just put $2.5 billion into electric cars and here in France, the State is quibbling over 10 million euros. The role of the State is to support companies who innovate and to rise up to future challenges – well Green Development is a challenge of the future.
The Cartech.fr web site provides added details about the vehicle itself.
This three seater with a rather original design has the driver in the middle with two rear passengers side by side. Getting in and out is made easier with sliding doors, with handles by the ceiling and floor. At 4 ft 11” high, it is available in three lengths: 6 ft 10”, 8 ft 2” and 9 ft 6” depending on how much loading space you want.
The motor is located in the rear centre, powered by NiMH batteries giving it 60 to 150 miles range depending on the version with a top speed of 70 mph. If it succeeds, Lithium ion batteries will replace the NiMH batteries in future versions.
Heuliez is also working with Michelin to develop another EV called the Will, based on the Opel Agila platform. Instead of one motor under the hood, there are four motors, one in each wheel, using Michelin’s Active Wheel design from the Bibendum Challenge. Each wheel gives 22 HP and the motors are powered by LiIon batteries in the version shown at the Motor Show. The model which will be sold from 2010 will offer a choice of 2 or four wheel drive, powered by a battery or a fuel cell. Several battery packs will be offered to give either 90, 180 or 250 miles range.
As part of a proposed restructuring plan, Europe1 is reporting that the government is prepared to weigh in to save the company, while at the same time, preparing workers and the public for the worse. Tahil's translation states...
The idea would be to get a plan to reduce the number of employees put through under the table. For the moment, 500 job losses are being discussed which is about half the workforce. Those made redundant would be given State retraining or job seeking help. Once everything has settled down, the idea would be to focus everything on EVs in conjunction with another industrial group.
Thanks to William for providing me with insights into another struggling electric car company. Birthing a new transportation paradigm isn't happening without its share of pain.
