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GM, Bright team up

By Abbey Doyle The Herald Bulletin

ANDERSON, Ind. —  It has been years since Anderson has seen money from General Motors, but a Tuesday announcement of a partnership between the motor company and Anderson’s Bright Automotive means the automaker is once again investing in the community.

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 company GM Ventures has invested in, and it will help accelerate Bright’s production of the IDEA, a plug-in hybrid commercial vehicle.

The $5 million is an initial investment, GM spokeswoman Sherrie Arb said, as the purpose of GM Ventures is to provide seed money to start-up companies with innovative technology ideas. Future funding is possible, she said.

The strategic relationship between the two could mean an additional 6,000 jobs, although it is still unclear if those jobs will be here in Anderson — 1,000 would be direct production jobs and 5,000 in the way of suppliers and to support infrastructure.

“Indiana has been a wonderful partner, and we really appreciate coming of age there, and we are doing all that we can to match the best (site) 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.”

And Anderson’s Flagship Enterprise Center — where Bright is currently located — can accommodate an expansion by Bright if the company decides to remain here for production, Flagship President and CEO Charles Staley said.

Bright is currently expanding its laboratory for Bright eSoultions with a 3,500-square-foot facility, and an 80,000-square-foot building is being built near the Flagship Center that could act as an interim step-up for Bright to go from its present space to some elevated prototyping and light manufacturing, he said.

Staley said they have been working with Bright to look at spaces in the area to accommodate a much larger expansion and production but stressed that the Flagship and Anderson would have to compete with other cities and states 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. 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 electrical 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.”

Lauckner said the partnership is one that will benefit both companies well. He wouldn’t elaborate about the share they now hold in Bright, only saying it was a minority one. He said the investment will advance GM’s position to develop energy-efficient powertrains and advance hybrid technology.

“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 and GM have been in talks since last fall about a potential partnership. Bright approached several original equipment manufacturers and GM emerged as the best, overall strategic fit, according to Bright officials.

Anderson Mayor Kris Ockomon said the partnership with GM 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. Now we have to go to work and make sure this stays right here in Anderson.”

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 and a recession economy, Bright was forced to reduce staff and halt some efforts, pushing the release date for mass production closer to 2014, Munger said.

Rob Sparks, executive director for Anderson’s Corporation for Economic Development, said Ockomon and his team, including Sparks, have been working “very hard” and continue to do everything they can to bolster Anderson’s position to support Bright.

“Only time will tell how all of that will pay off,” he said.

The city is “fully supportive” in helping entice Bright to stay, though, Sparks said.

“We have been pretty aggressive doing what we can as a community,” he said. “There are some things out of our control, but everything within our reach we’ve done to try to help them. We have looked at about every scenario to try to assist them in order to land their manufacturing here. But we still have to climb a hill.”

Anderson Economic Development Director Linda Dawson said they have had many conversations with Bright to discuss possible future incentives and look forward to continuing those conversations.

“GM is an old, respected name in Anderson and served Anderson quite well for years,” she said. “Bright is the new name in Anderson. We hope with the partnership being formed that GM would once again have a presence in Anderson with Bright. There is obviously a qualified labor force well skilled in alternative energy technology.

“We feel like this would be a benefit to not only both companies and Anderson but also a benefit to the world in general by putting new renewable energy in a common transportation van.”

Contact Abbey Doyle, 640-4840, abbey.doyle@heraldbulletin.com.