ElectraMeccanica eyes Arizona and Tennessee for potential assembly plant

Since late February, the company has been engaged with BDO USA’s Site Selection & Incentives Practice (BDO) in a nationwide review of potential locations that matched ElectraMeccanica’s criteria. BDO initially identified seven candidates and sent initial requests for proposal to the chief economic development entities in each state. In June, following proposal reviews and site visits at select locations, the company narrowed the candidate list to five. In August, the list was further narrowed to three states. And now, ElectraMeccanica has two remaining finalists; Arizona and Tennessee. Within each finalist state, the company has selected two finalist sites within the Phoenix, Arizona metro area and the Nashville, Tennessee region, respectively. Along with BDO, the ElectraMeccanica is now conducting final site and proposal reviews before making a selection at the end of November 2020, a press release reads. The proposed new U.S. facility is expected to create between 200 and 500 new jobs and feature an engineering technical centre, including plans for multiple labs to support ongoing vehicle, chassis and power electronics testing as well as comprehensive research facilities. The company also says that to date, it has seen a strong interest in the commercial fleet and utility sectors, supporting its plans for a future pilot SOLO ecosystem in the select region. Collectively, the operation would be expected to meet demand for SOLO EVs throughout the United States, where EVs are projected to exceed more than 30% of all passenger vehicles by 2040. In addition to the SOLO being classified as “Made in the USA,” the proposed new U.S.-based facility would allow ElectraMeccanica to reduce or potentially eliminate tariffs as well as benefit from logistical efficiencies. ElectraMeccanica intends to maintain a capital-light model with its contract manufacturing partner and strategic investor, Zongshen Industrial Group, in Chongqing, China. In conjunction with the proposed new ElectraMeccanica U.S. facility, Zongshen will continue to manufacture SOLO EVs for the global market, while also supplying knock-down kits for assembly in the United States. The Company has begun commercial production with future deliveries of the SOLO EV expected this fall. “We have been very impressed with the locations and proposals we’ve reviewed and are looking forward to reaching an agreement that would mutually benefit both ElectraMeccanica as well as our future state and local partners,” says Company CEO Paul Rivera, in the press release. “When fully operational, our facility should contribute hundreds of jobs to the local economy as well as have a positive impact on the community at-large. We are excited to be a part of the catalyst for local and state initiatives to drive growth for the U.S. economy and the EV sector.