EV Maker Puts Detroit-Area Factory on Hold

Detroit Electric Inc. has indefinitely suspended plans to build its $135,000 SP:01 electric sports cars in Plymouth, Mich., says Don Graunstadt, the Dutch company's North American president.

Detroit Electric declared in April that it would hire 100 workers and begin assembling the SP:01 at the Michigan plant by August. The startup said it would limit output there to 999 cars to avoid the need to comply with U.S government safety and performance standards.

But Detroit Electric hasn't yet signed a deal to lease or buy the factory site. News reports say the company's purported U.S. offices are vacant.

Graunstadt acknowledges that Detroit Electric encountered some "operational headwinds." The company is trying to improve the SP:01's aerodynamics and, separately, get U.S. safety certification to allow it to begin production and sales in the country.

Graunstadt says Detroit Electric has decided to focus initially on markets in Europe and Asia and supply them from its existing factory in the Netherlands. But CEO Albert Lam insists the company intends eventually to add EV production in Michigan.

Detroit Electric said this spring it aims to use revenue from SP:01 sales to develop and introduce two lower-priced EV cars in the U.S. by the end of 2014. The Dutch company also is creating an electrified version of Geely Automobile Holdings Ltd.'s Emgrand EC7 sedan to sell in China.