WAKARUSA — It was a big day for the small town of Wakarusa, as President Barack Obama unveiled a plan to help revive the economy by investing in electric-car manufacturing. But, one local company hoping for help didn't make the cut.
President Obama stood in front of an electric truck on the factory floor of Monaco RV in Wakarusa while speaking to a small crowd of factory workers and local officials. Many of those workers have been laid off in the last year.
Monaco's parent company Navistar will receive $39 million in federal grants from the U.S. Department of Energy to build the medium and heavy duty electric trucks, modeled after a series of similar trucks now built and distributed in England. The trucks have a range of 100 miles and the President says they will help lead to a new, clean-energy economy.
"Just a few months ago, folks thought these factories might be closed for good. But, now, they're coming back to life," Obama said, before being interrupted by a member of the audience.
"Thank you," the worker yelled.
"You're welcome," Obama replied. "Thank the American people."
Navistar purchased Monaco after it went bankrupt, and has already re-hired a handful of people to help the plant prepare to resume production. Company officials say they plan to hire more people early next year, but won't say how many.
Navistar is one of five Indiana companies and universities that will see a total of nearly $400 million dollars in stimulus money under the plan. Indianapolis based battery supplier EnerDel stands to receive the most, at $119 million.
Twelve Michigan companies and universities will receive more than $1 billion in total funding from the grant.
In all, companies and universities in 25 states received at least some portion of $2.4 billion under the Energy Department grants. $1.5 billion of that money will go to battery production and battery recycling centers. $400 million will pay for purchases and studies of hybrid vehicles and workforce training. And, $500 million will go to companies making electric drive components like motors, electronics and drive-trains.
But, there's one local electric drive-train company that was left off the list, and some are scratching their heads wondering why.
Electric Motors Corporation won't receive any of the grant funding, and wasn't invited to the President's address, even though the company's headquarters is right across the street from the Monaco complex on Nelson Parkway in Wakarusa.
At Shortstop Restaurant in downtown Wakarusa Wednesday night, what some viewed as a "snub" was the talk of the town.
"I think he did say something about Electric Motors," said Wakarusa resident Norma Fredricks.
Informed that, in fact, the company was not on the list, Fredricks was taken aback.
"That's surprising," she said. "That doesn't really make any sense."
"I thought that's why he was here, was Electric Motors Corp," agreed Deborah Perkins of Wakarusa. "[I really expected EMC to be a part of this,] yes. So, I am surprised."
They're not the only ones.
Wakarusa town leaders had T-shirts specially made for the event, anticipating what they thought the President's "big announcement" would be.
"I think everybody thought they were coming for EMC," said Wakarusa Town Clerk-Treasurer Joyce Hartman. "It was a surprise to everyone, I think, including Navistar. We think he had a lot of good things to say--job creation, bringing things to Indiana, employment and everything. We're just hoping EMC hasn't been forgotten."
And, it turns out EMC was the only one left off the list Wednesday.
Some town leaders in Wakarusa and city leaders in Nappanee weren't invited to the event. Others were "un-invited" to the President's speech after concerns from the Secret Service that the crowd had grown too large.
"The fact that none of us were invited to be there this morning when it's right here in our community, is a little disappointing," said Nappanee Mayor Larry Thompson (R). "It's great news that Navistar is getting this money, and the jobs that will follow are even greater news."
"But, to not be invited today, and then see my other friends who are in office, but of another party there in the front row — you know, I don't bring jobs here politically. I just have to bring jobs. And, that's what we're trying to do with EMC. So, I'm disappointed, that's for sure. We had been told by a number of people that we would be in line for some help" Thompson continued.
That sense of disappointment was echoed at EMC's headquarters Wednesday as well.
But, CEO Wil Cashen says it was coupled with something else: pride.
"More than anything, I'm just happy that the President of the United States came here to begin with. I'd be really self absorbed if I decided that it was all just about me. You want to do that, believe me. It's human nature to want to be the belle of the party. But, I'm just happy he came here and once again put focus on Elkhart County," Cashen said.
Still, the mere "speculation" about EMC's involvement has already given the company a boost.
EMC's stock has more than doubled in the last week, starting at $7.85 a share on Wall Street last Thursday, and closing Wednesday at $16.50 a share.
And, Cashen says hopes for an $82 million dollar loan from the energy department are still alive.
"We know exactly, pretty much now, where we stand at with our loan. And we're real happy with the information. Our loan is for a little bit more than most of the loans that were in there. Our loan is for $82 million. So, there's going to be a little more scrutiny," he said.
As for when that scrutiny might end?
"I could have told you two weeks back in February," he said. "I could tell you two weeks now. We really don't know. What I can tell you is that the money would be used for scaling. That money will mean more production. But, even if we get the loan and tried to get big quick, if the financial markets don't recover strong enough, we wouldn't use that money anyway," Cashen said.
As for the new increase in "competition" from the grant funding announced Wednesday?
Cashen says, he's not feeling the least bit "crowded," because he sees many of the money going to companies that could be potential partners in EMC's consortium of companies, including EnerDel, who Cashen says is already on board to provide batteries for EMC's trucks.
"I think eventually, some of these people [that received grants Wednesday] could have products that end up here in Wakarusa or Nappanee," agreed Thompson. "This could end up being a sharing of the wealth."
Plus, Cashen continues to refer to an Energy Department forecast last year that projects a 1,000 percent boost in demand for electric-hybrid vehicles over the next two years.
"At the 1,000 percent growth mark, we can't do enough. And no one else can either," he said.
At the end of the day, Cashen says he's still convinced EMC is on the road to success, "snub" or not.
"Before anybody showed up, we were here. And, a long time after they go, we'll be here," he said.
The next stop on that road comes September 4th and 5th, when EMC plans to unveil their prototype engine to the public. WSBT has now confirmed the event has the potential to include some fanfare.
"There will be a great concert involved with it. We're still waiting on contracts to come back from certain people, so we're being careful who we source. We don't need to have Woodstock here," Cashen said.
Still, he called the bands and recording artists the company is in talks with "big names."
"There's a good chance we won't charge very much, if anything, for the tickets. So, we're trying to work out some security details. But, it will be at the American Countryside Farmers Market right at the corner of [State Road] 19 and [U.S. 20 Bypass]. We already have a contract with them to put the facility up. There's some 250 acres there overall, so there will be plenty of room for parking and everything else," Cashen said.
EMC's hope now is the company might be able to use the event to celebrate their own receipt of grant or loan money from the federal government.
"That would be great," Cashen said. "But, even if it doesn't happen, I think things are progressing real well."
