Andrew Saul has seen electric vehicle manufacturers come and go. But the CEO and founder of Genovation Cars believes his Rockville company will beat the odds.

"We have carved out a unique space for us," Saul, a former banker and son of real estate magnate and former banker B.F. Saul II, said in the company's offices in an industrial area off Gude Drive. "I think we have a good shot of making it."

With gasoline prices hovering near $4 a gallon and a federal goal to put a million electric vehicles onto America's roadways by 2015, Genovation stands on the cusp of what could be a transformation of the automotive industry. And it's not the only business involved in this wave in Maryland. General Motors is building a new electric motor plant in the Baltimore area. Maryland auto dealers are starting to showcase and sell hybrid and full-electric cars such as the Chevrolet Volt and Nissan Leaf, respectively.

The wave means jobs. The GM plant is expected to create 190 positions after its planned opening in 2013. Genovation will need 125 workers per shift to hand-assemble its vehicles in a plant planned in Maryland by late 2013, said Saul, who spent a decade researching how to improve the internal combustion engine.
"We want to do our part to bring green jobs to the state," Saul said. "Maryland is a great state to do this type of work."

Back to the future
Electric vehicles were 10 times more popular than gasoline-powered cars in the late 1890s, according to the Electric Auto Association of California. But motorized assembly lines and easier starting devices for gasoline vehicles led to the decline of electric production.

As electric cars attempt a rebirth, they have not set gangbuster sales records. But the demand is there, with waiting lists for several vehicles. North American sales of battery-electric vehicles are expected to rise from almost 11,000 this year to at least 100,000 by 2020, according to research company J.D. Power and Associates. Other estimates show higher sales by 2020.

North American sales of the all-electric Nissan Leaf, which has been available for test drives at Darcars Nissan in Rockville and other dealers, almost doubled in April to 573 from 298 in March, according to Nissan. Sales of the Chevrolet Volt, an electric-gas hybrid sold at dealers such as Criswell Chevrolet in Gaithersburg, fell in April to 493 from 608 in March, though April saw the second-biggest monthly sales since delivery began late last year, according to GM.

The number of electric and hybrid models available to consumers is expected to grow from about 30 now to more than 150 by 2016, according to J.D. Power and Associates. With more people taking delivery of the Volt and others, there is likely more than 100 electric vehicles operating in the Baltimore-Washington, D.C., region, said Charlie Garlow, vice president of the nonprofit Electric Vehicle Association of Greater Washington, D.C. They range from a 1903 Baker Electric to vans and pickup trucks operated by utilities Pepco and Baltimore Gas and Electric.

Saul and Jeffrey Abramson, a partner of Rockville developer the Tower Cos., are among those on the waiting list for new vehicles such as the Volt.

"There is a finite amount of fossil fuels, and biofuels can only go so far," Saul said.

The cars could induce some sticker shock, though there is help in the form of a $7,500 federal tax credit and state credits. The Leaf starts at $33,630, with the Volt several thousand dollars more. Genovation's planned G-2 coupe will retail at $60,000 as a higher-end green competitor for Audi and BMW, executives said.

"It will fit four adults comfortably," said Steve Rogers, president and CTO of Genovation. Plus, it incorporates environmentally friendly features such as natural rubber tires and seats made from recycled plastic bottles, he said.

Consumer concerns over purchase price could hinder the industry's growth, said Mike VanNieuwkuyk, executive director of global vehicle research at J.D. Power and Associates. "The bottom line is that most consumers want to be green, but not if there is a significant personal cost to them," he said.

Genovation hopes to produce 1,000 G-2's annually.

"We are the only locally owned, federally certified company to make cars in Maryland that I know of," Saul said.

Between now and planned production, Genovation needs to locate more investors and apply for federal and local grants, Rogers said. He estimated the company needs at least $100 million more to start production.

Among its research and development partners is Tata Technologies, part of the Indian automaker that owns the Jaguar brand. Tata is the prime contractor on the design and development of the G-2.

Who in their right mind would start a new car company in the U.S. in this day and age? Good question, though Fisker and Tesla have managed to scoop up quite a bit of government and corporate largess in the course of their launches. Rockland Maryland-based Genovation Cars Inc. bills itself as a tight team of dedicated professionals who have allied themselves with established corporations like R&D partner Tata Technologies (an engineering services arm of the Indian megacorporation) to help realize its stated goal of becoming “the premier provider of green automobiles in the U.S.”

The company envisions a range of cars starting with the G2 coupe, which would launch as a battery electric vehicle powered by a 38 kW-hr lithium-iron-phosphate battery pack provided by partner K2 Energy. Range for the 3500-pound aero-slick 0.20 Cd four-seater is stated at “100 miles under worst-case conditions,” with 0-60-mph acceleration estimated at a respectable 7.5 seconds. (That aero number is based on computational fluid dynamics studies soon to be verified in the University of Maryland’s wind tunnel, and no power figures have been announced for the AC induction type traction motor.)

The EV would be joined soon after by a plug-in series hybrid using a Lotus 3-cylinder engine that was designed specifically for range-extender duty and shown in Geneva two years ago. A smaller 22 kW-hr battery pack will be used in the plug-in version, good for around 50 miles per electric charge, plus another 250-300 on gasoline. A single, advanced thermal management system will keep the batteries, engine, power inverter, and passengers operating within their respective comfort zones, and is being developed by Dana Thermals.

Other lofty goals listed on the company’s web site include extensive use of wind and solar energy at their factory and use of recycled and renewable materials in the vehicle while admitting that “color consistency cannot be guaranteed and is therefore not acceptable to some large manufacturers.  We consider this inconsistency to be an environmental badge of merit.” Company representatives suggest that the car can be built and sold profitably in volumes of 3000 per year at $60,000 each and hopes to have the cars on sale by 2014. We wish Genovation all the best, but that sounds like a tall order to us.

We first met the new G2 from Genovation back in January, when the company formally announced it had completed the first phase of its G2 Electric Car program. This week in Detroit at the SAE World Congress, we caught up with Genovation CEO Andrew Saul to see what's been happening since then and to find out what the plan is for the EV start-up company.

First, meet the G2: a two-door, four-seat vehicle that will come in two versions: an all-electric with 100 miles of range (that's 100 miles with all the accessories, including A/C or heat, turned on, Saul said) and a range-extended version that goes 50 miles per charge and than can go 250-300 miles on a gas tank. That all sounds fine and dandy, but here's the bad news: the G2 will cost around $60,000 (at least at first; it could come down in time).

How can an unknown electric car for 60k compete with EVs from established automakers? Saul said the answer can be expressed in one word: performance. The G2 will be able to do 0-60 in under seven seconds and has a suspension tuned for the people who like to put the pedal to the metal. Saul said Genovation is "not trying to compete with the Leaf or the Volt. This is a fun vehicle that doesn't compromise." Saul looked at Fisker and Tesla and realized that Tesla does now offer a range extender (of course, the Roadster can already go 200+ miles and the Model S will be able to hit 300+) and the Fisker Karma "is a four-door, heavy sedan" that costs more than the G2. Plus, at $60,000 a pop, Saul said the project could be profitable if it sells 3,000 vehicles a year.

Saul said that Genovation is currently rewriting the business and production plans. If all goes well, the company could move to Phase Two in the next two to six months. Genovation wants to build 12 prototypes for cold- and hot-weather testing, endurance tests and noise/vibration/handling improvements. In late 2013, Genovation could be taking deposits for the car and deliver the first vehicles in 2014. Saul said the goal is to assemble the car in Maryland, but "we will listen to what other states have to offer."

Genovation is based in Maryland, but hired global company Tata Technologies to work on the car and Tata subcontracted some work to Metalsa (which worked on the frame) and Dana Corp (the thermal management). Tata also ran the G2 through simulated crash tests and Saul said the car "performed very well." Even with all this outside help, the G2 is Genovation's own design and it's aerodynamic shape gives the G2 a Cd of .2, "which is very competitive," Saul said. Genovation is using its homestate ties to the fullest, applying for Maryland Industrial Partnerships (MIPS) to get money to bring the car to market. 

Genovation Cars will partner with Tata Technologies as an exhibitor.  Tata serves as the prime contractor on the design and development of the G2.  Genovation will be exhibiting two quarter-scale models of the G2 and a video animation of the auto at the event.

"We are very pleased to be participating with our partner Tata Technologies at the SAE World Congress," said Andrew Saul, Genovation Cars CEO. "We are using this event to unveil the design of our new G2 plug-in electric car and corresponding website as the SAE World Congress is the premier platform for the exhibition and sharing of new technologies relating to the automotive industry."  

Tata Technologies is using the event to announce its Vehicle Program and Development (VPD) Division, featuring the G2 as an example of its capabilities.  Tata Technologies has created a special cut-away model of the G2 for the show to feature at its booth; prepared event-related marketing material; and designed a special section of the firm's website relating to the G2 project.

"The Tata Technologies team is excited to be playing a pivotal role in the design and development of the G2," said Kevin Fisher, Tata Technologies President - VPD. "We share the Genovation vision for the future of EV technology."

Genovation was founded in 2007 by Mr. Saul.  Other top company executives include Robert Irby, Senior Executive for Manufacturing and Operations, and Steven Rogers, President and Chief Technology Officer.

"The G2 is designed to be easily maintained at the dealership level; as opposed to the many sophisticated hybrid cars available today from major manufacturers that require highly-trained factory supported teams to maintain certain parts of the technology," said Mr. Saul.

Genovation plans to differentiate itself from its competition by better understanding and anticipating the requirements of its clientele; be it the suburban family, green-conscious state/ local government agencies, or corporations desiring a fleet of electric cars or plug-in hybrids.

The SAE 2011 World Congress features a comprehensive, industry-driven technical program focused on applied technology; "Chats with the Experts" discussion groups – facilitated by subject matter experts and designed to encourage open dialogue on key topics; and the AVL Technology Leadership Center and FEV Powertrain Innovation Forum.

SAE International is a global association of more than 128,000 engineers and related technical experts in the aerospace, automotive and commercial-vehicle industries. SAE International's core competencies are life-long learning and voluntary consensus standards development.    

In an electric powered vehicle it is not obvious when the vehicle is powered and able to move. The electronic management system is a key component in communicating safety and security to the driver, and coordinating all operational functions of the automobile.

"We are very pleased to be working with Astek to design the electrical and computer functionality of our cars," said Andrew Saul, Genovation CEO. "Astek has an expertise and a track record with this type of project that is unparalleled in the industry."

Established in 1998 in Colorado Spring, Co., Astek specializes in developing complex electronic components and subsystems for new and emerging technology markets. Astek's expertise, products and solutions can be found in the automotive, industrial, and military markets. In the automotive market, Astek provides both control system and video expertise that target vehicle management and anti-collision solutions. As a defense contractor, Astek provides high reliability electronic subsystems for mission critical applications, which are synergistic with the needs of the evolving electric vehicle market.

In addition, Genovation recently announced it will build an electric sports car to be known as the G-Vette. Also, the company has selected Tata Technologies, the Dana Corporation, and Metalsa S.A. de C.V. to design and prototype Genovation's G2 model, and contracted with American Dynamics Flight Systems to perform the Computational Fluid Dynamics (CFD) analysis of the car.

Long term, it is Genovation's goal to operate from a business plan that attains profitability through the use of manufacturing "pods" that require only a few robots, a departure from the Detroit manufacturing model. To achieve this goal Genovation plans to rely heavily on small teams of well-trained employees. "With this model, we can be nimble and market driven in order to react to where there is a demand and volume is achieved through deployment of multiple pods," said Mr. Saul.

Genovation was founded in 2007 by Mr. Saul. Other top company executives include Robert Irby, senior executive for manufacturing and operations, and Steven Rogers, president and chief technology officer. Genovation plans to differentiate itself from its competition by better understanding and anticipating the requirements of its clientele; be it the suburban family concerned about spikes in the future cost of gas, green-conscious state/local government agencies, or corporations desiring a fleet of green electric cars.

Through the CFD process, ADFS will use Genovation's engineering files to perform computer-simulated wind tunnel tests, allowing for the refinement and improvement of air flow efficiencies on the G2.  The CFD tests will also help increase the high-speed stability of the automobile. 

In addition, Genovation also recently selected Tata Technologies to design and prototype the G2 model.  The G2 model will incorporate Genovation's research and development that went into its G1 model, an electric conversion of a Ford Focus.  The conversion included the installation of an electric motor, battery string, battery management system, safety system, HVAC, controller and instrumentation.

Long term, it is Genovation's goal to operate from a business plan that attains profitability building only 1,000 units a year through manufacturing "pods" that require only a few robots, a departure from the Detroit manufacturing model. To achieve this goal Genovation plans to rely heavily on small teams of well-trained employees. "With this model, we can be nimble and market driven in order to react to where there is a demand and volume is achieved through deployment of multiple pods," said Mr. Saul.

Genovation was founded in 2007 by Mr. Saul. Other top company executives include Robert Irby, senior executive for manufacturing and operations, and Steven Rogers, president and chief technology officer.

Genovation plans to differentiate itself from its competition by better understanding and anticipating the requirements of its clientele; be it the suburban family concerned about spikes in the future cost of gas, green-conscious state/local government agencies, or corporations desiring a fleet of green electric cars. 

About American Dynamics Flight Systems:
American Dynamics Flight Systems, Inc. (ADFS), www.ADFlightsystems.com, is a privately held corporation that designs and builds Unmanned Aircraft Systems (UAS) with Vertical Take-off and Landing (VTOL) capabilities. This company has extensive experience in CFD analysis and computer modeling.

The company will start building commercial truck frames at a factory in Jamshedpur, India, next week, and has joined Tata Motors Ltd. to design and make electric cars for U.S. startup Genovation Cars Inc., said Gustavo Andres, chief commercial officer for Monterrey-based Metalsa.

Metalsa became the second-largest producer of auto frames in North America after completing in March the purchase of Dana's business, adding 10 plants in the U.S., Argentina, Brazil, Venezuela and Australia. Demand is picking up after sales plunged in the U.S. last year, Andres said.

``We're seeing more opportunities as the industry recovers,'' Andres said yesterday in a telephone interview.

The new plant in India has the capacity to produce 600 commercial truck frames daily and is designed to double that amount, he said. Metalsa will sell the frames to Tata and to a joint venture between Mahindra & Mahindra Ltd. and Navistar International Corp., he said.

Metalsa is owned by the Monterrey-based holding company Proeza, which also has interests in foundry, fruit juices, information technology and health care. Magna International Inc. is the largest maker of auto frames in North America.
Genovation, based in Rockville, Maryland, said last week it hired Tata and Metalsa to help design and produce the electric car.

``This is a project focused more on technology development,'' Andres said. ``The sales of electric cars currently aren't high volume.''

Metalsa revenue was about $400 million in 2009, he said. The company builds a light, aluminum frame for General Motors Co.'s Corvette at the Hopkinsville, Kentucky, plant it acquired from Dana, Andres said.