AC Propulsion: Examining The Electric Vehicle Industry Mary Beard Cindy Chen Philip Wong

Electric Vehicles in the Automotive Industry  EVs leader in automotive industry prior to 1912  Interest in EVs fluctuates with oil prices  Recent concerns over smog and other pollutants drives EV research

Classifications of Electric Vehicles  Performance categories  Bikes and Scooters  Neighborhood (25 mph)  City (55 mph)  Full-function  Power Sources  Fuel cell  Hybrid  Battery (lead acid, lithium ion, nickel metal hydride)

AC Propulsion  Performance categories  Bikes and Scooters  Neighborhood (25 mph)  City (55 mph)  Full-function  Power Sources  Fuel cell  Hybrid  Battery (lead acid, lithium ion, nickel metal hydride)

History of AC Propulsion  Founded in 1992 by Alan Cocconi  CIT graduate  Developed drive system for GM’s Impact (EV-1)  1994 AC-150 Drive System  Honda Civic conversion vehicle

AC Propulsion Projects  Government research  Non-profit research  Major auto manufacturer projects  Volkswagon  Vehicle conversions state and local agencies  South Coast AQMD  SoCal Edison  LA County Dept of Water & Power  T-Zero

T-Zero  AC Propulsion’s full-function EV  0-60 mph in 4.1 seconds  Max speed  Current: 90 mph (Single gear system)  Future: 120 mph (Dual gear system)  Price  Current: $120,000  Future: $50,000 - $70,000

Observations and Recommendations  Size of company and impact  Development of Market  Position of AC Propulsion as a technological company  Revenue Problems  Outsourcing

Operating as a Small Company  Retaining technical edge and direction  Reliance on individual members  Inefficiencies  Narrow-mindedness

Viewing the Future of the EV Market  Market history shows difficulties  Undeveloped market  Growth of EV market is flat at best  Will EV market blossom?  Penetrating new markets

AC Propulsion’s Technology  T-Zero project shows strengths of company  Ability to respond quickly to market demands  Taking on new projects  Miscellaneous projects

Revenue Problems  Moving forward with current R&D  AC Propulsion’s position of being “cash strapped”  Company culture  Company view of investors and borrowing money

Recommendations  Consulting or outside assessments of company  More aggressive marketing  Hiring new person to aid Tom  Penetrating new markets  Bringing in more revenue  Re-assessing company view of investors  Borrowing money  Reevaluating company culture of revenue  Outsourcing