UPDATE: Company unveils plans to build new hybrid-electric system in Elkhart County

by Troy Kehoe (tkehoe@wsbt.com)

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Downtown businesses in Wakarusa expect to feel a ripple effect after another round of layoffs at Monaco Coach

The town of Wakarusa could benefit from an expected job announcement Thursday. (WSBT photo)

WAKARUSA — A California based company wants to make Elkhart County the new international hub for hybrid-electric vehicles. Wednesday night, it unveiled plans to the public that could include the creation of thousands of new jobs.

WSBT was the first to confirm Wednesday that Camarillo, CA-based Electric Motors Corporation plans to begin developing and assembling the new technology for medium and light-duty pickup trucks later this year.

Wednesday night, EMC executives announced plans to develop and assemble that technology in Elkhart County. They unveiled details in front of a joint assembly of the Nappanee Common Council and Wakarusa Town Council at a special meeting.

EMC CEO Wilhelm "Wil" Cashen told the group the company plans to build a massive complex called the "Wa-Nee EMC Electric Vehicle Industrial Complex" near the now shuttered Monaco Coach plants just off State Road 19 in Wakarusa.

The company's intent is to make Elkhart County the world leader in electric and hybrid-electric vehicle technology.

Nappanee Mayor Larry Thompson opened the special session by invoking the words of Henry Ford.

"They called it the car for every man," he said, with a grin from ear to ear. "Henry Ford called it the future. 100 years after the first mass produced Model-T came rolling off of the assembly line, the future is now."

They were the same words rolling off Cashen's tongue, as he described his reasons for choosing Elkhart County.

"I grew up in Mishawaka, and I used to go to Penn-Harris-Madison," he told the crowd. "I know what the RV market means here and I know things are down. I think the opportunity exists for us to be able to manage those downs and work for the ups."

Cashen's plan to turn things around is an ambitious one.

It begins with the small, 100 horsepower hybrid-electric engine his company recently patented.

"It's specifically for medium weight, light duty trucks and RVs. It's a drive system, a hybrid drive system, that basically bolts into existing vehicles and chassis," Cashen said.

The next steps in his plan include setting up shop here for research and development, training a new workforce, building the engine and eventually trucks and other vehicles, and finalizing a consortium of engine manufacturers, electric engine manufacturers, battery assemblers and chassis manufacturers.

It's a lot to do in a short amount of time, but Cashen says EMC wants to strike while the iron is hot.

He cites a recent study by the U.S. Department of Energy that forecasts a 1000% increase in demand for electric drive vehicles over the next three years.

He says there's plenty of opportunity to go around.

Electric Motors Corporation won't be alone in its quest.

"The key word here is consortium, building a network. We're pretty much following the Google-nomics model of building a network. And from that network, we derive our success by helping other people be successful," Cashen said.

One company that could be part of that network is Nappanee based Gulf Stream Coach.

Cashen wouldn't confirm the names of any potential consortium partners. But documents obtained by WSBT include "letters of engagement and support" from Indiana senators, congressmen, state senators, state representatives and other local leaders.

Most of the letters mention the potential of a partnership between the two companies, including a letter of support signed by Gulf Stream Coach President Brian Shea that also mentions another consortium partner called BB Foundry and Machine.

All of the letters are addressed to the U.S. Department of Energy, requesting a loan to make the project a reality.

If it does happen, local leaders say it would mean one big thing for the area.

"Jobs," laughed Wakarusa Town Manager Tom Roeder. "That's the thing that [Nappanee] Mayor [Larry] Thompson and I have really talked about. We have a great group of people coming, and we couldn't be more excited."

What those leaders aren't talking about yet is exactly how many jobs.

They have a good guess. Inside that group of letters to the Department of Energy, estimates of job creation range from 400 in the first year of production to up to 6,000 new jobs by 2012.

Mayor Thompson says it's the "big news" Nappanee and Wakarusa have waiting for.

"The economic tornado we've been in, there wasn't much hope. There was no light at the end of the tunnel. And tonight kind of gives us that light. Now, we know what our goal is," he said.

"We're increasing urgency every day," agreed Cashen. "So, we're hoping to have something within a year."

The partnership took its first step Wednesday night.

Both the Nappanee Common Council and Wakarusa Town Council unanimously passed a resolution to form a joint partnership to "negotiate in good faith" with EMC and its consortium.

Company officials will join Governor Mitch Daniels and other state and local leaders for a news conference Thursday morning to release additional details.

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