• May 29, 2010
EnerDel Inc. announced plans to open li-ion battery plants in both China and Europe in an effort to triple its battery production by the end of 2011 and meet the expected demand of new partnerships. Though the company currently holds deals with just two automakers (Think and Volvo), it plans to announce two additional customers by the end of the year, one hailing from Europe and the other from Asia.

From building electrodes and cells on up to assembling fully functioning battery packs, EnerDel will do it all in-house at its future Chinese plant. Once completed, this facility should have enough capacity to produce 20,000 battery packs per year. The European plant will operate in a different way. This plant will take cells built at another location and assemble them into fully-functional battery packs. The European site is also expected to have an annual capacity of 40,000 packs by the end of next year. Both sites should be functional by the end of 2011.

Once these new plants are completed, EnerDel will be able to produce 60,000 packs per year around the world, three times its current output. Back in January, EnerDel began to expand its U.S. operations by investing $237 million to open a new plant in Indiana.

[Source: Automotive News – sub. req.]


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  • 17 Comments
      • 4 Years Ago
      As many of you know, once a company opens a factory in china to produce their product a "Chinese" version knockoff is only weeks away (and will sell in far higher numbers than the original).

      So, what will the ripoff version be called? Let's have a naming contest!

      *for reference, Chevy Spark became the Chery QQ, Honda CR-V became the Luang SRV or something like that. Come on! Be creative!
        • 4 Years Ago
        @worldcitizenUSA "once a company opens a factory in china to produce their product a "Chinese" version knockoff is only weeks away"

        So what are the knockoffs of XBOX, iPod, iPhone, PS3 etc etc etc called ?

        • 4 Years Ago
        And my point is made. Thank you.

        Knowing what I know about the subject I am continually amazed that any company would think of moving factories there. It is pure economic suicide.

        Again, you cannot make a profit when you are competing against your own products being sold at 1/2 to 1/3 the price you can sell them for.

        And as to the google search I think it is very evident that you made a statement without even a two second search on google. And in terms of business impact, so what if your product sold more units than the knock off. It is still far cheaper for your competitor to steal your product and make it cheaply so not only are they ating into your profit margin with each and every unit they sell but they will eventually be able to price you out of the market using your property, your product, to do it. This is the point I made with the QQ. You can do your own google hunt to see the evidence for the iPhone knock off in the link I provided. Please do your own google work.
        • 4 Years Ago
        Since most of cell production automated, and the labor that is used is engineering, equipment maintenance and management, why do these companies move to China?

        Does this have anything to do with the fact that the US Corporations pay the highest taxes in the world?

        http://www.americanthinker.com/2009/03/us_companies_pay_the_highest_t.html

        Wow, taxing the US rich really DOES create jobs... in CHINA!
        • 4 Years Ago
        And don't forget "offshoring" which allows a corporation to move it's headquarters to the Cayman Islands and legally owe absolutely ZERO taxes in the US. Having the best congress money can buy really pays off at tax time!

        Exxon and some other oil companies paid ZERO taxes in the US last year. Check out this link to a Forbes article: http://www.forbes.com/2010/04/01/ge-exxon-walmart-business-washington-corporate-taxes.html

        I understand that you think your corporate masters will somehow pat you on the head for spreading their lies but that kind of idiocy doesn't resonate very well here. Good luck and I hope your master throws you a crumb every now and again to reward your slavish devotion. Don't count on it though.
        • 4 Years Ago
        @worldcitizenUSA Thanks for your condescending remarks. I definitely know more about how the world works having lived in various countries than you think I do.

        "As many of you know, once a company opens a factory in china to produce their product a "Chinese" version knockoff is only weeks away (and will sell in far higher numbers than the original)."

        Show me iPhone, iPod, XBox, PS3 etc knockoffs that have sold in far higher numbers than the original. Don't give me some BS google search.
        • 4 Years Ago
        evnow,
        I hate to tell you, but you can buy iPhone knock offs in China for less than $100...and they hold dual SIM cards so you can easily switch back and forth between networks. When we were over there in Sept on a trip, the Chinese we were working with were showing them off and were so proud of them and thought it a great achievement.

        China has gotten "better" in that they at least make pretend to police things now, but as a whole they will rob you blind. They just don't see anything wrong with it.
        • 4 Years Ago
        manufacturers of these items prefer China because China is business friendly, and the expertise to run these factories is found there.. and willing to work for a lot less. I believe the automated machinery used to make these cells is actually from the US but that may be outdated info by now. Assembling cells into packs does take a lot of labor, but most of the product is used one cell at a time in cell phones so none of that labor is needed.
        • 4 Years Ago
        EVnow, you are probably a very nice person. I'm sure you want to believe that everyone in the world is just as nice and law abiding as you. I don't want to be the one to cause your awakening but there are some very bad people in the world. They do not care about you or your views. They do not care about laws nor morals. They care about money, and getting more and more of it. Believe that if it were a choice between killing you with a spoon and getting millions more for them you would be spooned in a new york minute. It took me a two second google search to find the iPhone ripoff. I'll include it here to help you on your way. Maybe if you get the time and are not too traumatized by realizing that Capitalists know one rule, the golden one, you may want to do other google searches for the other stuff you are wearing blinders about. I wish you well.

        http://www.google.com/#hl=en&source=hp&q=chinese+iphone+knock+off&aq=1&aqi=g10&aql=&oq=chinese+iphone+&gs_rfai=CK10jcGgBTOqYA4KGzQTE_bi0BQAAAKoEBU_QQfdV&fp=1cd78282b1bacd69

        There are numerous links there. I hope it's not too much of an imposition to ask you to research them. Have a nice day.
        • 4 Years Ago
        Sorry. The Golden Rule: he who has the gold makes the rules.
        • 4 Years Ago
        GM thought they were going to make a killing in China selling the Chevy Spark. Then chinese company Chery (aka Cheri) stole their design and sold it for $1,000 less than the Spark. The QQ went on to outsell the Spark 4 to 1 one year, 20 to 1 in another.

        http://www.autoblog.com/2005/08/18/chery-qq-trumps-chevrolet-spark-in-sales/

        Honda also should have learned a lesson:
        "This isn't the first time a foreign auto maker has felt ripped off in China. In 2003, Toyota Motor Corp. (TM ) sued Hangzhou-based Geely Group Co. for copying the Japanese company's logo and slapping it on Geely models. Toyota lost the case. Yet Honda Motor Co. (HMC ) in December won a ruling that bars Chongqing Lifan Industrial from selling motorcycles under the "Hongda" brand. Honda is also suing Shuanghuan Automobile Co., saying the Chinese company's Laibao SRV is a copy of the Honda CR-V sport-utility vehicle. "Chinese car companies still have limited [design] capabilities," says Jia Xinguang, an analyst at China National Automotive Industry Consulting & Developing Corp., a consultancy. "That is why so many [of them] copy bigger car companies' models.""
        (source: http://www.businessweek.com/magazine/content/05_06/b3919010_mz001.htm )

        "If you think Malaysia's state of piracy is bad, you ain't seen nothing yet. China is where Uncle Ho got his MBA in Piracy. They can pirate anything and nothing's stopped them for doing it."
        (source: http://paultan.org/2004/12/05/china-pirates/ )
        • 4 Years Ago
        To further pound it into some thick heads on this board:

        "The German company MAN Nutzfahrzeuge AG designed the Starliner bus as a new generation and it has a very distinctive style, from the internationally recognisable wrap-around front glass to the lines and wheel cover design. In October, 2006 they took the Zonda China Buses & Coaches Group to court via their Chinese branch, MAN-China. MAN had registered a Chinese design patent in 2005 and has numerous additional international patents for this bus.

        This design theft doesn't just hurt MAN outside China but inside as well since they licensed the design to their Chinese partner Neoplan-Youngman Jinhua. A story in Spiegel incudes pictures of both the Starliner and the A9 copy with similar views for comparison. The Starliner sells for €350,000 (US$455,000) while Zonda's A9 copy sells for about a third of that."
        (source: http://www.toytowngermany.com/lofi/index.php/t57077.html )

        The Chinese ripoff sells for ONE THIRD the cost of the original. Western companies who think they'll make a profit while competing with their OWN PRODUCTS at one third the cost are certifiably insane.
        • 4 Years Ago
        @Tim,
        You are missing the numerous tax evasion scams the corporations have.
        The total tax paid last year was about $300bn.
        The fragrant Goldman Sachs in the course of making a $2.2 bn profit after they had creamed off their huge salaries and bonuses, paid a whopping $14 million in tax on this, for an effective tax rate of 0.6%
      • 4 Years Ago
      Sounds like I need to increase my shares of EnerDel.
        • 4 Years Ago
        Wrong. You didn't read the first post. EnerDel will make very little profit on its factory in China.

        Find the ticker symbol of the Chinese company that will be stealing EnerDel's designs. They are the ones who will be making all the profit on this whole deal. It will not be the same company name that contracted with EnerDel. But it will likely be owned either by one of their officers or the bureaucrat who oversees the contract.
      • 4 Years Ago
      I am quiet aware that conterfiting of products does happen in China. However as others have pointed out China is business friendly and companies like EnerDel, GM, and VW do not make signinficant investments in the many millions of dollars in China with the prospect that most of their profit is going to be stolen away.
        • 4 Years Ago
        Western companies think making $1 million in China is better than making zero. What they fail to realize is that these chinese ripoffs will be competing with them internationally in short order. This is what happened with the Chery QQ versus Chevy Spark. The QQ is cleaning the Spark's clock in every market, worldwide, except the USA. Do you honestly think it'll be any different for VW, et al?

        If they'd get their heads on right they'd move manufacturing back to the US and make products using robotics. The US worker is far more trustworthy and innovative. We work harder and put all our focus on the job and how to improve, streamline, innovate, etc. The American worker is our greatest asset. Robots will allow the American worker to produce more products for less cost and will put us back on top.
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