Does the name Detroit Electric mean anything to you? If you don’t remember then it’s okay, because almost everybody forgot about it. This Detroit-based American automaker made a promise back in 2013 that they are going to manufacture exciting electric sports cars. But they didn’t make the front page because of production delays and Tesla’s unprecedented rise to power. But it seems like they are going to make a comeback. Detroit Electric recently announced that they are going to start a joint venture with Chinese electric company Far East Smarter Energy. The deal will be worth $1.18 billion.
This venture should get them back on track and kick-start their plans again. By the end of 2017, the venture will initially help ramp up production of the SP:01 sports cars. It will also invest $370 million to expand Detroit Electric’s European operations for the next 4 years.
But the long term plans of this company may be over ambitious. This alliance is planning to establish a new design and production facility and hopes to develop an electric SUV that could be ready for production as soon as 2018. Then their third vehicle will launch in 2020. This planning is not only aggressive but also very optimistic compared to other electric car makers. A well oiled fast moving company like Tesla takes years to manufacture a production grade electric vehicle so a new comer’s bold claims like this are raising some eyebrows.
Let’s hope they will be able to deliver on their promises.