British inventor James Dyson hasdropped out of the race to produce electric cars in the face of stiffcompetition and after criticism of the Brexit-backing billionaire’s decisionto build the vehicle in Singapore, reports BSS/AFP.
Dyson, known for his bagless vacuum cleaners and bladeless fans, announcedtwo years ago that he was investing two billion pounds ($2.5 billion) indeveloping an electric car, and the first vehicles were expected in 2021. The ambitious project catapulted the 72-year-old entrepreneur intocompetition against more established players such as US firm Tesla, foundedby business magnate Elon Musk, and car makers from the US to China.
Adding to his difficulties, the plan ran into controversy when the companyrevealed that its first car plant would be in Singapore and its globalheadquarters were shifting to the affluent city-state. Dyson insisted it was to be closer to booming Asian markets — but therewas fury that the tycoon was not investing more in UK manufacturing aftervocally supporting Britain’s exit from the European Union. There had however been little indication that Dyson was having secondthoughts about the high-profile project, which hundreds of employees werealready 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 hardthroughout the development process, we simply cannot make it commerciallyviable.” “We have been through a serious process to find a buyer for the projectwhich has, unfortunately, been unsuccessful so far,” he said.
There are 523 people in the automotive team, the majority in Britain and22 in Singapore, a spokesman said. Dyson said “as many of the team aspossible” would be reassigned to other roles in the company. Singapore government agency the Economic Development Board predicted thedecision to ditch the project would have a minimal disruption on Dyson’soperations in the Asian trading hub, as it was at an early stage.
– Tough project –
In May, Dyson unveiled brief details of patents filed for the electric carand said it would be more energy-efficient than rivals — and with “verylarge wheels” for city and rough-terrain driving. But analysts were sceptical about the plan and not surprised about thechange of heart. “From the first instance it was always difficult to understand why Dysonthought that it would have any sort of competitive advantage in actuallyembarking on this project,” Walter Theseira, a transport economist atSingapore University of Social Sciences, told AFP.
“Selling a successful electric car is really a very high-capitalenterprise, it’s a very ambitious project. “Given the global competitive landscape, you’re adding a new manufacturerwhich is untested in the car industry and which does not appear to have thesame kind of deep pockets as existing local car manufacturers.”
Electric vehicles are increasing in popularity as governments worldwideseek to phase out polluting petrol and diesel cars, but producing themprofitably is a challenge for even leading manufacturers. While Tesla has strong consumer appeal, investors have been frustrated bythe pace of production and the company’s ability to hit its financialtargets.
Despite dumping the project, Dyson insisted the company would continue a$3.1 billion investment programme in new technology, including themanufacture 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 sincemade 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 terraceand jacuzzi. And the tycoon also bought a luxury house complete with an indoorwaterfall, spiral staircase, landscaped garden and infinity pool, accordingto local media.