Within weeks of capturing victory in the Automotive X-Prize's Alternative Class-Tandem, Peraves and its electric motor supplier, AC Propulsion, announced the signing of a letter of intent to assemble up to 100 of the ultra-efficient E-Tracer motorcycles at a facility in Dimas, CA beginning next year. This order, along with others streaming in from automakers around the world, has pushed AC Propulsion's production capacity to its limit.
In response to the growing demand, AC Propulsion announced that it will expand output by constructing a new electric drive manufacturing facility in Beijing, China. The move is part of a broader plan to increase the company's reach and will more than double AC Propulsions' production capacity in the Asian country. Tom Gage, chief executive officer of AC Propulsion, explains the need for expansion like this:
AC Propulsion currently owns a manufacturing facility in Shanghai, where it produces electric drive systems for customers across the globe.Our order book is overflowing, so we're expanding to meet future demand. We are gratified to be participating in the vast growth of the Chinese electric vehicle market and expect to have the first AC Propulsion-powered vehicles on the road in China in 2011.