Development costs give ambitious projects a bumpy ride

By John Griffiths
The ability of specialist car projects to swallow bigger-than-budgeted development costs explains why individual financiers and investment houses have learnt to treat funding approaches with hypercritical scepticism, writes John Griffiths.
One of the most ambitious such private ventures for years is Project Kimber. Led by David James, the company turnround specialist, its business plan is to produce a heavily restyled version of DaimlerChrysler's little Smart roadster and coupé two-seaters at a rate of 7,500 cars a year in Wales; and to revive the century-old AC name as the brand under which to market it.
Mr James and his cohorts have reached agreement in principle with DaimlerChrysler to acquire the intellectual property rights to the car and the plant and equipment to build it. The cars should be much cheaper to bring to market than almost any other such project because they were years under development at a cost far beyond the reach of specialist carmakers and tens of thousands have already been sold.
Read more here.

AC Ace Returns Via Smart

New roadster using fortwo running gear.
by Richard Yarrow
Smart is coming to the U.S. in 2008, but only with the fortwo city car. But another of the DaimlerChrysler-owned firm's models could arrive the year after - wearing the badge of legendary British brand AC.
DC axed production of the smart roadster and roadster coupé at the end of last year as part of its cost-cutting. But bosses are on the verge of selling the entire venture including tooling to a group of enthusiasts based in the U.K. Called Project Kimber, it has some heavyweight support including Gordon Murray, the brains behind the outrageous McLaren F1 supercar. It's close to obtaining financial backing from sources in Europe and Hong Kong, and the memorandum of understanding it signed with DaimlerChrysler last February is about to become a contractual reality.
The first three official images of the two-seater - to be called the AC Ace - have also been revealed. Production is expected to begin in the middle of next year, with prices from around $23,000 to $37,000. Both right-hand-drive and left-hand-drive models will be available, and a U.S. launch is slated for 2009.
Read full article here.

Project Kimber AC Smart unveiled

We previously reported the news that UK engineering firm Project Kimber was planning to build a new version of the discontinued Smart roadster with the help of designer Gordon Murray. Project Kimber had released an earlier sketch of the car, but have now released a new sketch showing some of the changes they will make. The consortium will build the AC Smart at a site in the UK and is putting together a $65m investment to build it. It’s also made arrangements with Smart to buy the equipment made to build the original Smart roadster.
Though the AC Smart will share its underpinnings with the Smart Roadster, it will not simply be a copy with AC badges, according to What Car?. Working alongside Gordon Murray on the project is John Piper whose previous achievements include helping to build the JCB Dieselmax land speed record car, and together they’ll be honing the roadster to drive better than before.
Click here to take a look at our old story with the previous sketch.
Source: http://www.motorauthority.com/news/news/project-kimber-ac-smart-unveiled/

AC/DC or sound business sense

Is this déjà vu all over again? I don't want to put the mockers on Project Kimber and their new AC smart sportscar, but haven't we been here before? A part of the world that is not known for car production [in this case Wales] is anxious to pony up taxpayers cash to attract a sports car manufacturer. Cue the Bricklin in New Brunswick, Canada. Cue the De Lorean in Northern Ireland. All we need is for the AC smart to be launched with gull-wing doors.
Project Kimber has only one chance to get it right. In short the existing smart sportscar failed because it looked a bit funny, lacked grunt and was too expensive. A bit of a hairdresser's car. We could add that Mercedes-Benz didn't really know what to do with it.
The new version needs to look drop-dead gorgeous, have more power and be priced more competitively from day one. For looks the Dodge Slingshot showcar would be a good place to start. Reports that the car will sell for £13,000 are encouraging but watch that price creep up as time goes by.
By the way does anyone remember the Gilbern? RLT

Roadster Re-launch

Project Kimber news 31st August 2006
STATEMENT ON PROGRESS FROM PROJECT KIMBER
Project Kimber is pleased to confirm that it has secured an exclusive option which will allow the re-branded and re-engineered smart roadster to be re-launched under the world-famous marque of AC.
This has been agreed with the owners of the AC sports car brand, Acedes Holdings, LLC, and provides a sub-licence for ongoing use together with the option of an acquisition at a later date.
If this option is triggered it will not affect the production of any product manufactured through Acedes Holdings, LLC, producers of classic AC models. The option is subject only to a successful closing of Project Kimber’s funding.
The Welsh Assembly Government announced at the London Motor Show in July that it had made a conditional offer "in principle" to Project Kimber of regional aid. A number of possible assembly locations in South Wales are now being studied. Wales's economic circumstances allow it to grant the maximum funding permitted under European Union rules for regional assistance.
Read full report here.