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End of the road: Dyson crashes out of race to make electric cars
SINGAPORE, Oct 11, 2019 (BSS/AFP) – British inventor James Dyson has
dropped out of the race to produce electric cars in the face of stiff
competition and after criticism of the Brexit-backing billionaire’s decision
to build the vehicle in Singapore.
Dyson, known for his bagless vacuum cleaners and bladeless fans, announced
two years ago that he was investing two billion pounds ($2.5 billion) in
developing an electric car, and the first vehicles were expected in 2021.
The ambitious project catapulted the 72-year-old entrepreneur into
competition against more established players such as US firm Tesla, founded
by business magnate Elon Musk, and car makers from the US to China.
Adding to his difficulties, the plan ran into controversy when the company
revealed that its first car plant would be in Singapore and its global
headquarters were shifting to the affluent city-state.
Dyson insisted it was to be closer to booming Asian markets — but there
was fury that the tycoon was not investing more in UK manufacturing after
vocally supporting Britain’s exit from the European Union.
There had however been little indication that Dyson was having second
thoughts about the high-profile project, which hundreds of employees were
already working on, until an announcement late Thursday of the abrupt U-turn.
Dyson said in a statement that his team had developed a “fantastic car”
based on an “ingenious” approach but added: “Though we have tried very hard
throughout the development process, we simply cannot make it commercially
viable.”
“We have been through a serious process to find a buyer for the project
which has, unfortunately, been unsuccessful so far,” he said.
There are 523 people in the automotive team, the majority in Britain and
22 in Singapore, a spokesman said. Dyson said “as many of the team as
possible” would be reassigned to other roles in the company.
Singapore government agency the Economic Development Board predicted the
decision to ditch the project would have a minimal disruption on Dyson’s
operations in the Asian trading hub, as it was at an early stage.
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– Tough project –
In May, Dyson unveiled brief details of patents filed for the electric car
and said it would be more energy-efficient than rivals — and with “very
large wheels” for city and rough-terrain driving.
But analysts were sceptical about the plan and not surprised about the
change of heart.
“From the first instance it was always difficult to understand why Dyson
thought that it would have any sort of competitive advantage in actually
embarking on this project,” Walter Theseira, a transport economist at
Singapore University of Social Sciences, told AFP.
“Selling a successful electric car is really a very high-capital
enterprise, it’s a very ambitious project.
“Given the global competitive landscape, you’re adding a new manufacturer
which is untested in the car industry and which does not appear to have the
same kind of deep pockets as existing local car manufacturers.”
Electric vehicles are increasing in popularity as governments worldwide
seek to phase out polluting petrol and diesel cars, but producing them
profitably is a challenge for even leading manufacturers.
While Tesla has strong consumer appeal, investors have been frustrated by
the pace of production and the company’s ability to hit its financial
targets.
Despite dumping the project, Dyson insisted the company would continue a
$3.1 billion investment programme in new technology, including the
manufacture of batteries, robotics, machine learning and AI.
The company in May completed the move of its headquarters to Singapore,
where many international firms have their Asian bases, and Dyson has since
made headlines by going on a property-buying spree.
He reportedly paid Sg$74 million ($54 million) for Singapore’s biggest,
most expensive penthouse — a three-floor residence with a rooftop terrace
and jacuzzi.
And the tycoon also bought a luxury house complete with an indoor
waterfall, spiral staircase, landscaped garden and infinity pool, according
to local media.
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