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Flagship could accommodate Bright production facility

By Abbey Doyle The Herald Bulletin

ANDERSON, Ind. —

Anderson’s Flagship Enterprise Center can accommodate an expansion by Bright Automotive if the company decides to remain here for production of its IDEA plug-in commercial service van.

The strategic relationship between GM and Bright, announced Tuesday, could mean an additional 6,000 jobs, though it is unclear whether those jobs would be located in Anderson.

“Indiana has been a wonderful partner, and we really appreciate coming of age there. … We are doing all that we can to match the best selection with those communities we are really close to,” said Reuben Munger, Bright Automotive Chairman and CEO. “Anderson is at the front of that list.”

Newly formed General Motors Ventures will invest $5 million in Bright and will own a minor stake in the company, said Jon Lauckner, president of GM Venture. This is the first funding by GM Ventures and will help accelerate Bright’s production of the IDEA.

“We’re basically delighted to be in a partnership, a strategic relationship with Ruben (Munger) and the Bright team,” Lauckner said. “We hope as an early investor that we not only support Bright in development of production with technology we have with engines and transmissions, but we also hope to act as a catalyst to grow the capital base of the company and ultimately lead to the successful development of the Bright IDEA van.”

Bright Automotive has been seeking a federal loan and other investors for production of the IDEA.

GM and Bright signed a memorandum of understanding in July.

Munger said the investment would mean 1,000 direct jobs and an additional 5,000 in the way of suppliers and to support infrastructure. The Anderson facility is already beginning expansion by adding space to its current engineering location, Munger said.

Flagship President and CEO Charles Staley said Bright is currently expanding its laboratory for Bright eSoultions and that an 80,000 square-foot building is being built near the flagship that could act as an interim step-up for Bright to go from its present space to some elevated prototyping and light manufacturing.

Staley said the Flagship has been working with Bright to look at space in the area to accommodate much larger expansion and production but stressed that the Flagship and Anderson would have to compete to earn it.

“We have an advantage,” he said. “We know the company. We have supported the company. We have walked this path with Bright and leveraged every resource we could for them. We have been in the trenches with them supporting them through the dark days. They know that.

“Do we have a lock on this though? No, we don’t,” Staley said. “They are going to go out and look at other sites. That is due diligence on their part. But we do think we can compete. Indiana is a great place to do this sort of thing. The legacy here is in electric engineering and hybrid platforms. This is the electrical engineering capital. They know that Anderson has supported them. I think we have the advantage, but we have to go back to the drawing board and put together a program and platform to seal the deal so they will do the manufacturing here.”

Anderson Mayor Kris Ockomon said the announcement is a “huge step” in the right direction.

“We’ve been awaiting this announcement,” he said. “This is going to spurn excitement and motion from the Department of Energy.”

Bright has applied for a $450 million low-interest loan through the Department of Energy’s Advanced Technology Vehicles Manufacturing Loan Program to begin mass production of the IDEA by 2012. The company was previously denied DOE grants of $17 million and $18 million. With delays in funding forcing a reduction in staff and a halt in production, the estimated production launch of the IDEA is closer to 2014, Munger said.
“Now we have to go to work and make sure this stays right here in Anderson,” Ockomon said.

For more details, visit www.theheraldbulletin.com later today and read Wednesday’s print edition of The Herald Bulletin.