Don Graunstadt

Brighton, MI (USA)
Role(s):
C-Level Executive (CEO, CFO, etc.)

Detroit Electric Holdings Ltd

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Location: Central Disctict
Industry: Automotive
Year Founded: 2008
Number Employees: 10-50 people
Business Stage: Growth (not profitable)
Entity Type: Incorporated Outside United States
Description: Detroit Electric will provide high-quality, practical and affordable electric cars to fill the growing demand for realistic and practical non-petrol vehicles . Detroit Electric’s two-stage business model of adoption and creation relieves the capital burden normally associated with start-up automobile companies. Typical investment required for such a venture lies in the neighborhood of $800 million. Detroit Electric will become an established car company for less than 25% of that amount. Strategic arrangements making this possible include agreements with the Malaysian Government and its national car company, Proton Automobile, Bhd. Under existing agreements, DE owns the rights to use two of Proton’s existing passenger car models, the Persona and the Gen-II, both based upon the same platform. DE has re-engineered the vehicles as electric cars, completing integration of the drivetrain and battery pack without impacting on passenger or trunk space. Proton will build the vehicles under contract for Detroit Electric at its state-of-the-art facility in Malaysia. Proton will, under license from Detroit Electric, sell the electric vehicles under the Proton brand in the ASEAN market and exclusively in Malaysia. Detroit Electric will sell under the Detroit Electric brand in the ASEAN market and elsewhere in the world, including the key markets of the US and the EU. Detroit Electric has similar agreements on the table with Lotus, Plc in the United Kingdom. Hence the first stage of the model is termed as adoption. The second stage of the model is termed creation because, at the same time as the first stage is executed, DE will establish a Technical Center in Detroit, Michigan that will create an all new vehicle line-up for launch in 2013. Thus, the second stage term of creation.