Auto giant selects factory in France to manufacture smart for two electric car
Two of the leading players in the race to develop a mainstream electric vehicle moved a step closer to production this week.
Daimler will start production of its smart fortwo electric car next month and there are reports that Tesla has secured a battery supply deal for its Model S electric sedan.
In an announcement earlier today, Daimler said it has selected its smart car plant in Hambach, France to manufacture the new model and will produce a trial run of 1,000 units from next month.
The company will then invest more than €10m (£9.19m) in developing a new assembly line with the aim of starting large-scale production from 2012.
Speaking at a special event at the Hambach plant attended by French president Nicolas Sarkozy, Daimler chairman Dr Dieter Zetsche said that customers could expect to receive the first electric smart cars by the end of the year.
"The smart fortwo electric drive proves that emission-free driving in an urban environment is already feasible today," he said. "The initial series production will begin now with 1,000 vehicles… [and] as of 2012, the smart fortwo electric drive will then be part of the regular product programme of the smart brand."
President Sarkozy said the development of the plant would be supported through the French government's Prime d'aménagement du territoire (PAT) subsidy initiative, while further incentives would also be offered by local regional authorities. Daimler said that the various subsidies combined would cover 15 per cent of the total investment.
The news comes as reports emerged that US electric car firm Tesla, in which Daimler holds a stake, has signed a deal with electronics giant Panasonic for it to provide lithium-ion batteries for its planned Model S electric sedan.
According to reports at Greentech Media citing sources close to the Japanese battery-maker, the company is close to inking a major supply deal with Tesla as it continues to work towards launching its first mainstream electric car in late 2011.
Tesla is still in the process of selecting a manufacturing site for the Model S after securing a $365m (£227m) development loan from the US Department of Energy.
source: businessgreen
