plus 1, Indiana stakes a claim to become the home of the ... - Elkhart Truth

Indiana stakes a claim to become the home of the ... - Elkhart Truth

Posted: 15 Mar 2010 08:30 PM PDT

BY PAUL A. EISENSTEIN

msnbc.com

The so-called "RV Capital of the World" soon may be able to bill itself the "EV Capital of the World." What a difference a letter makes.

Elkhart will soon be the new U.S. production center for Think, the Norwegian-based manufacturer that hopes to charge into the emerging market for battery-electric vehicles. The first of the maker's two-seat City, an urban commuter car, will begin rolling off the new assembly line a year from now. If demand meets Think's expectation, the company hopes to be turning out as many as 20,000 battery-electric vehicles, or BEVs, annually by 2013.

The announcement, earlier this year, that Think would settle in Indiana puts the spotlight on the Midwestern state's broader effort to position itself as a leader in a technology that many believe to be the future of the auto industry. Indeed, Gov. Mitch Daniels has declared it one of his goals to turn Indiana into "the electric vehicle state."

Indiana isn't the only state chasing that goal.

"I don't know a state that isn't aggressively trying to get this business," including California and Michigan, the latter of which is still considered the home of the U.S. auto industry, said David Cole, director of the Center for Automotive Research in Ann Arbor, Mich.

"Indiana does have some advantages" though, added Cole.

That includes cash the state is willing to spend to get a business such as Think. After emerging from bankruptcy protection last year, the one-time Ford Motor Co. subsidiary decided it needed to build its BEVs in the U.S., rather than importing them from Europe, which would make the cars costly due to an unfavorable exchange rate. Think looked at a number of possible manufacturing sites but a key draw for Indiana was what chief executive Richard Canny cautiously described as a "competitive" incentive package -- reportedly about $43 million in government assistance.

Canny was quick to add, however, "You don't choose a location just based on incentives."

Setting up shop in northern Indiana gives Think access to an enormous pool of trained labor, including many workers familiar with automotive manufacturing. The region has long been home to the nation's recreational vehicle industry. But the virtual collapse of the RV market has left it with one of the nation's highest unemployment rates and given Think a chance to pick and choose employees.

"If you were to start an electric car company, I would tell you it's a good place to start," said Jerry Medlin, chief executive of LC3, a small producer of so-called neighborhood electric vehicles, modified golf carts based in Fort Wayne.

Indeed, a number of start-ups are heeding that advice, including Bright Automotive in Anderson, Ind., which, among other things, has a contract to provide electric vehicles to the U.S. Postal Service.

Yet another advantage to Indiana is its central position in the traditional automotive supplier corridor. Though foreign-based automakers, like Nissan, Hyundai and Toyota, have largely set up bases in the South, the Midwest is still the nexus of American automotive manufacturing. What Indiana doesn't make often can be found nearby in Ohio or Michigan.

And what the Hoosier State does produce includes many of the key components specifically needed for electric vehicles: motors, power controllers and batteries.

It's often forgotten that Indiana was a power in the early days of the auto industry, home to a diverse collection of manufacturers such as Packard, Stutz and Studebaker, pointed out Paul Mitchell, president of Energy Systems Network, which promotes the development of alternative energy businesses in Indiana.

While those classic nameplates have long been abandoned, Mitchell noted that the state's role in the auto industry has remained significant. It was a pioneer in the development of electric propulsion. The GM EV1, a widely heralded experiment General Motors tried to market in the 1990s, was developed at a skunk works the company set up on the north side of Indianapolis.

Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.

This posting includes an audio/video/photo media file: Download Now

Leggett & Platt Sees Improved Demand for Car Parts ... - BusinessWeek

Posted: 16 Mar 2010 01:33 PM PDT

March 16, 2010, 4:39 PM EDT

(Updates share price in last paragraph.)

By Matt Townsend

March 16 (Bloomberg) -- Leggett & Platt Inc., the 127-year- old manufacturer, has seen improved demand for its car-seat parts and home-furniture components so far this year, Chief Executive Officer David Haffner said.

"Things are better," Haffner, 57, said today in an interview. "We are reluctant to get too optimistic too quickly, but things are relatively better."

Sales of components for beds and reclining chairs have risen by a high single-digit percentage since the beginning of the year, Haffner said. Leggett & Platt, based in Carthage, Missouri, also increased revenue from the car-seat parts it sells to Johnson Controls Inc. and Lear Corp. as the North American auto industry rebounded beginning late last year, he said.

The gains in components for home furniture and car seats have been offset by lagging sales in carpet padding and components for office furniture, Haffner said. Furniture and bedding accounted for 36 percent of 2009 sales, and automotive made up 8 percent of the total. Fabric and carpet underlay represented 15 percent of revenue, according to the company.

Sales fell 25 percent to $3.06 billion last year from 2008. First-quarter revenue is predicted to decline 1.5 percent to $707 million, according to the average estimate of five analysts in a Bloomberg survey. The manufacturer reports first-quarter results on April 22.

Hiring Employees

Leggett & Platt hired a few hundred employees to meet rising demand this year, Haffner said. The company has cut about 6,000 jobs since October 2008, reducing its workforce to about 19,000, he said.

The company continues to look for opportunities to buy companies although it isn't working on any major acquisition, Haffner said. He said he expects the amount of deals to increase in the industry.

"There is a lot of money available, waiting to be put to use," Haffner said. "At some point in the not too distant future, expectations will get back in line with valuations and deal flow will become more significant."

Leggett & Platt gained 24 cents, or 1.1 percent, to $21.38 at 4:15 p.m. in New York Stock Exchange composite trading. The stock has risen 4.8 percent this year.

Related news and information: Consumer & Retail headlines: {RTOP <GO>} Peer comparison: {LEG US <Equity> PPC <GO>} Relative value: {LEG US <Equity> RV <GO>} Retail sales figures: {RTSL <GO>}

--Editors: Cécile Daurat, Elizabeth Wollman

To contact the reporter on this story: Matt Townsend in New York at mtownsend9@bloomberg.net

To contact the editor responsible for this story: Jennifer Sondag at jsondag@bloomberg.net

Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction.