Detroit Electric gets $ 1.8 billion investment from Chinese firm

It's been four years since the electric car brand Detroit Electric announced plans for a Tesla Roadster-esque sports car. The company managed to get the car, called the SP: 01, to the pre-production stage in late 2015, but a financing shortage kept it from completing all the regulatory hurdles needed to start the sales.

Fast forward to today and it seems Detroit Electric has been thrown a lifeline in the form of a major investment of Far East Smarter Energy Group. The Chinese company operates in a number of areas of activity ranging from supplying power cables and batteries to over-the-counter drugs and other healthcare products.

Detroit Electric and Far East Smarter Energy Group will form a joint venture worth approximately $ 1.8 billion. The purpose of the joint venture is to finance the development and production of a family of electric cars for sale under the Detroit Electric brand.


The joint venture will also support Detroit Electric's production plans for SP: 01 at the current Leamington Spa plant in the UK. About $ 370 million will be invested in the US plant over the next four years to create a new R & D center and develop additional models.

Beyond MS: 01, the joint venture plans to launch an electric SUV at the end of 2018 and a third model, probably a sedan, by 2020. The joint venture aims for an annual production of approximately 100,000 vehicles once The three models launched.

"We have worked exceptionally hard over a long period to establish this joint venture and to secure financing for our ambitious new electric vehicle program," Detroit Electric President and CEO Albert Lam said in a statement. "I am therefore delighted to be able to announce this new joint venture, which represents a significant step forward in the manufacture of vehicles and the EV industry in Europe and a further important step towards bringing our EV family to market.
News Via MotorAuthority