News
Thursday, May 15, 2008
Karachi firm buys Canadian electric car company
By Khalid Hasan
WASHINGTON: Government restrictions and declining sales have prompted British Columbia carmaker Dynasty Electric Car Corporation to accept a purchase offer from the Pakistani auto manufacturer, Karakoram Motors Ltd of Karachi. The Pakistani company has agreed to buy the design and manufacturing operations of Delta, British Columbia-based Dynasty, which has been making electric cars since 2001. Details of what the Pakistani company will pay for the assets have not been disclosed by Dynasty, which is a wholly owned subsidiary of another company that makes specialty equipment for trucks. Dynasty general manager Danny Epp told the Canadian Broadcasting Corporation (CBC) that the main reason for the decision to sell was government regulations that prevent the electric vehicles from being operated on major highways. As Dynasty's primary market is the US, the strong Canadian dollar also played a role in the decision to accept the offer from the Pakistani company, he said. "We were only manufacturing 30 to 40 vehicles a year, and you can't make any money off that." With six employees on the payroll and a plant in Delta, Dynasty assembles battery-powered cars made with fibreglass bodies and other parts produced elsewhere. The vehicles are priced at around $16,000. The zero emission, low-speed vehicles are designed for urban, recreational and light commercial markets, including planned and gated communities, destination resorts, industrial complexes and universities. According to CBC, by ramping up production to about 5,000 units annually, Karakoram will be able to generate a profit by selling the vehicles to buyers in the US and Europe. Aside from larger manufacturing facilities, the new owner is expected to benefit from lower labour costs in Pakistan and global efforts to reduce carbon emissions.
Courtesy Daily Times