WAKARUSA — It's been 6 months since Wakarusa based Electric Motors Corporation announced plans to turn Elkhart County into an electric vehicle manufacturing center, creating up to 1,600 new jobs along the way. But, now, some in the community are concerned that those plans may be running "off the road."

EMC laid off at least 4 employees this week--about 1/3 of its total workforce.

CEO Wilhelm "Wil" Cashen, a Mishawaka native and Penn High School grad, says it was a necessary step to reduce overhead costs. Others say it's a sign EMC is moving in the wrong direction.

MOVING FORWARD

To say Cashen is an "optimist" might be putting it mildly.

"I feel great. I feel like we're doing what we should be doing," he told WSBT.

It's the same confidence Cashen exuded when EMC fist came here from Camarillo, CA 6 months ago to announce plans to begin building light-duty hybrid electric pickup trucks in Wakarusa and Nappanee by early 2010.

That vision, he said, would also create up to 1,600 new jobs by 2012, with the possibility of up to 6,000 new positions down the road.

The problem?

Lately, progress on that vision hasn't moved much.

"Basically, we're where we were two months ago," Cashen said. "But, we're still planning on shipping vehicles at the end of next year."

Final engineering on EMC's electric engine has seen some delays and Cashen says a purchase order for truck chassis submitted to Jordan Ford in Mishawaka is currently on back-order.

But, plans to hire a workforce to eventually assemble the trucks are moving forward, Cashen said.

"Our partners purchased a building here in Wakarusa, and that's going to be where we put our training center, our educational center. That will also serve as a training center for the area," Cashen said.

The building, he said, is a former Monaco Coach plant near the corner of State Road 19 and County Road 40.

"We plan on being in the school by the 1st of the year. It will probably be running, realistically, at probably mid-year," Cashen said.

But, Cashen wouldn't say exactly who that "partner" is, or why they've purchased a building to simply give to EMC.

"I don't want to divulge that," Cashen said. "It's a private group."

Right now, however, the company is doing more firing than hiring. At least 4 employees were let go this week.

TRIMMING POSITIONS

"We closed our marketing department. We did do that. Everybody in marketing was let go. And, we laid them off, because of some of these setbacks in the vehicle. Also, we had planned to have support for some promotional programs that we were unable to get sponsorships for," Cashen said.

But, Cashen also says it was a lack of work still to be done that resulted in the layoffs.

"There wasn't any need to keep a marketing department on with nothing to market. We have responsibility to our shareholders to make sure we're not overspending. And, I'm not going to overspend," said Cashen.

But, several former employees at EMC who all asked to remain anonymous, say the company's financial problems run deeper than that.

EMC's stock price, listed on Over-The-Counter trading on the NASDAQ exchange, is down $1.50/share in the last month, to a current level of $2.50/share.

In addition, EMC's request for $82 million in loans from the U.S. Department of Energy was recently rejected. The company's original plans included proposals to seek a combination of loans and grants totaling more than $300 million.

Cashen says EMC plans to re-apply for the Energy Department funding.

In addition, $4.6 million pledged by Indiana Governor Mitch Daniels (R) to EMC in performance based tax credits, along with up to $200,000 in worker re-training grants, hasn't moved into EMC's accounts either, according to Indiana's Economic Development Corporation.

A stringent list of demands must be satisfied before that money will be delivered.

Some other EMC employees, who also asked to remain anonymous, said delivery of their paychecks was delayed for more than a week last month.

Cashen denies that charge.

"No, [we did not miss payroll,] he said. "We simply needed to cut payroll more than we needed to add payroll."

As for EMC's finances?

Cashen says he's not concerned.

"We're always dealing with financial issues. But, every company is dealing with financial issues, especially in these times. The stock price hasn't grown. But, there shouldn't be any reason for growth. We're not at the point now where we've released the truck. Go look at it in March," Cashen said.

But, some in the community aren't convinced.

DOUBTS GROWING

"I think everyone is a little suspicious," said Ramona Loucks, a Wakarusa resident for more than 50 years. "We're hoping it will work, but it seems a little iffy. I'll believe it when it happens."

"I don't like the way that sounds," agreed Elias Martin, also of Wakarusa. "They should be adding jobs, not cutting them."

Some employees WSBT spoke to felt the same way.

"Promises were made to the community about employment. You can't come into a community, make those promises, and then not deliver. And, I don't know that those jobs will ever be created," said one former employee who asked to remain anonymous.

Complaints have also been lodged against Cashen's other company, Automotive Legends, based in Malibu, CA. The Santa Barbara, CA based chapter of the Better Business Bureau assigned a C+ rating to the company based on six complaints lodged against Automotive Legends in the last 36 months.

According to the BBB, four of those complaints were over the company's failure to "agree to perform according to contract." One complaint is listed as "unanswered."

But, some of EMC's current partners tell a different story.

A POSITIVE RELATIONSHIP

A project manager at Livernois Engineering, based in Inkster, Michigan told WSBT that EMC does have a currently unpaid purchase order. But he described Livernois' relationship with the company as "mostly positive, from a business perspective."

EMC's only fully assembled "Flash" truck is now at Livernois' facilities, undergoing another "face-lift," the company said.

Despite the criticism from some, Cashen's optimism won't be shaken. He sticks by his prediction of 1,600 new jobs in the next two years.

"And the way the economy's rolling, it may even be bigger," he said.

And, despite the delays, Cashen is confident full production of the Flash truck will still begin on Gulfstream's Nappanee campus by the end of 2010.

"I feel like we're doing what we should be doing. There's a lot of things I would like to happen faster, but I can't control those. So, I can't be upset about them. All I can do is do the best I can to be straightforward," Cashen said.

"When things are good, I'll say they're good. When things are bad, I'll say they're bad. Right now, I wish things were better. I wish we were making trucks faster. But, gosh--I've only been here since May," he continued.

Cashen expects plans to accelerate in February, as EMC officially unveils its Flash truck at the Chicago Auto Show. We also now know that the company is hoping to charge an initial price of $50,000 for the truck, though Cashen says that price may slide up or down as final battery costs are calculated.

As for the rest of the details that will "bridge the gap" between concept and production?

Cashen considered the question for a moment, then grinned.

"All I can say is stick around for the second half of the show," he said.