Iacocca and Stempel Announce Business Agreement
10 February 1998
Iacocca and Stempel Announce Business Agreement
EV Global Motors and Energy Conversion Devices
Unite to Hasten Light Electric Vehicles to Market
DETROIT, Feb. 10 -- Two former leaders of Detroit's
automotive industry are joining forces to accelerate the commercialization of
light electric vehicles for personal transportation.
Ex-Chrysler Corp. chairman Lee Iacocca and ex-General Motors chairman
Robert C. Stempel today announced plans to work together in the rapidly
expanding electric vehicle market.
Iacocca is chairman of EV Global Motors (EVG), a producer and marketer of
electric-powered bicycles based in Los Angeles, Calif.
Stempel is chairman of Energy Conversion Devices, Inc. (ECD)
, founded by Stanford R. Ovshinsky, president and CEO, and
inventor of the advanced nickel metal-hydride (NiMH) battery, as well as
advanced photovoltaics and information products. ECD's subsidiary, Ovonic
Battery Co., Troy, Mich., has developed these batteries for electric and
hybrid electric vehicles.
Under the new business agreement, Iacocca will serve as senior advisor to
ECD, and Stempel as senior advisor to EVG.
Innovative Team. Associated with many firsts in the auto industry,
Iacocca and Stempel are teaming with Ovshinsky to bring practical, affordable,
pollution-free personal transportation to the public.
They believe in the freedom that personal transportation provides. They
recognize that as clean and efficient as today's motor vehicles are, with more
people driving more miles, there is a need to decrease air pollution and
reduce the nation's dependence on foreign oil. They are certain that electric
and hybrid electric vehicles provide solutions to these issues.
"We are forming this alliance because we believe there is significant
potential for lightweight electric vehicles to become major contributors to
the future of transportation worldwide," Iacocca said. "Our new partner has
impressive credentials and experience in advanced batteries, and has
demonstrated great scientific skills in this field."
Stempel said, "I'm confident that this alliance will lead to revolutionary
advances in light electric vehicles, leading the way in new concepts and
products for the next millennium. Both companies are founded on technologies
that will play a critical role in extending EV technology beyond the current
state of the art."
Follow the EV Road. In announcing the venture, the new business teammates
said their companies' strategic relationship includes:
* cooperating in further development and commercialization of light EVs
using EVG vehicles and ECD energy storage technologies; and
* jointly investigating the use of photovoltaic (solar power) recharging
stations, an area in which ECD and its United Solar affiliate already play an
active role.
The road to the future of electric vehicles now brings together two
veteran executives who competed with each other during their automotive spans
in Detroit. Both were exceedingly product-oriented.
Iacocca developed the 1964 Ford Mustang and 1984 Chrysler minivan, both
considered to be cornerstones of key market segments today.
Stempel was the leader in the development of advanced technology at GM,
such as the first modern mass-produced front-wheel-drive passenger car, the
1966 Oldsmobile Toronado; and the catalytic converter, an exhaust emission
control system introduced in 1975, which is still in use today by virtually
every automaker.
Enabling Technology: The Ovonic Battery. After retiring as chairman of
Chrysler Corp., Iacocca formed EVG in March 1997. "The company was founded to
provide the world with new choices for travel and recreation that are user and
environmentally friendly," Iacocca said. "The plan is to produce state-of-
the-art EVs for consumers of all ages."
Iacocca said that after being involved with the auto industry for more
than 50 years, and having worked on several electric vehicles during that
time, it was obvious that conventional batteries did not provide enough
driving range.
"But today's advanced batteries can make electric vehicles practical,
providing ample driving range at affordable prices," Iacocca said. "The
mission of the alliance we are announcing today is to produce EVs for vehicle
owners and users wherever they may be."
Stempel retired from GM as chairman in November 1992. Having been part of
the auto company's solar-powered Sunraycer car program, and the original
Impact electric car product that led to production of GM's current EV1
vehicle, Stempel recognized that an advanced battery was needed to make EVs "a
real and viable part of our personal transportation system."
Stempel began to work closely with Stanford R. Ovshinsky, president and
chief executive officer of Energy Conversion Devices, Inc., in 1993, after
evaluating the Ovonic NiMH battery as an energy source for EVs. Produced by
licensees, the Ovonic NiMH battery in small size is used in millions of
consumer electronic devices such as cellular phones, camcorders and personal
computers. Larger versions -- now being produced by GM Ovonic, ECD's joint
manufacturing venture with General Motors -- are becoming the battery of
choice to power electric vehicles.
Stock Exchange. EVG and ECD will exchange shares of their common stock.
EVG will also transfer to ECD certain shares of the common stock of Unique
Mobility Corp. (Amex: UQM) held by EVG.
EVG is Unique's largest shareholder with approximately 12 percent of
outstanding shares. Unique is the supplier of the motor and controller for
the EVG bicycle. ECD and Unique have also collaborated on several EV projects
including a five-passenger vehicle and a scooter. Unique trades on the
American, Boston, Chicago and Pacific Stock Exchanges under the symbol UQM.
Energy Conversion Devices, Inc. trades on the NASDAQ national market under the
symbol ENER.
SOURCE EV Global Motors
