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.

Project Kimber smart roadster to Begin Production Next Summer

250 jobs to go at Panasonic
Aug 29 2006 - Western Mail

FINAL confirmation came yesterday that the Panasonic factory in Port Talbot will close in December with the loss of about 250 jobs.
The Japanese multinational electronics manufacturer has decided to switch production of the car speakers made at the plant to Asia and Slovakia.
Jerry Lewis, general manager of the factory, said employees would be given benefits which went "way, way, beyond" the statutory redundancy package.
The 140,000 sq ft site is expected to get a new lease of life as the manufacturing base for venture company Project Kimber's relaunch of DaimlerChrysler's Smart roadster and coupe sports cars.
----------------------
If Project Kimber does start production in Port Talbot, many of the former Panasonic workers may find employment at the site.
The team behind the Smart car plan were said to have been attracted to South Wales by the skilled labour force in the area.
Production is intended to start by next summer, with 8,000 models hitting the road in the first year.
Read full article here

DaimlerChrysler May Build Smart Car in the US

Citing DaimlerChrysler Chief Executive Dieter Zetsche, Reuters reports that DaimlerChrysler corporation apparently considers building its Smart minicar in the United States. Talking to the German newspaper Frankfurter Allgemeine Sonntagszeitung, Zetsche said that "the tendency [to grow Smarts on American soil] is clearly positive".DaimlerChrysler's CEO expects board of directors to reach the final decision till the end of this month. Mr Zetsche reiterated once again that his company is committed to turn now loss-making Smart minicar production into a profitable business.A year earlier DaimlerChrysler put off the assembly line its Smart Roadster, which will presumably be revived by the British Project Kimber, and also abandoned plans for a Smart offroader.

See source:

Healey car to be reborn with Smart overhaul

The Times May 03, 2006
By Christine Buckley, Industrial Editor
HEALEY, one of the classic names in British sports cars, is to be revived by a consortium including David James, the Conservative Party adviser and company doctor, The Times has learnt.
The Project Kimber consortium, which tried to acquire the assets of MG Rover and then the MG brand last year, has bought the Healey name from the family of Donald Healey, the rally driver and the business’s founder, who died in 1988.
The consortium plans to start production — possibly in Coventry — of a new retro-style sports car towards the end of next year, with an annual output of up to 15,000 cars and initially employing about 200 people.
Access Capital, a venture capital group working with the consortium, is believed to have secured funding of £65 million for the first two years of the operation. Advantage West Midlands, the regional development agency, has offered £1.95 million in grant aid for the scheme, the maximum that it is able to offer, for production to be based in an old Dunlop factory in Coventry.
Read full story here.

Smart money says it's German

The Birmingham Post Business
Mar 16 2006
By John Revill, Manufacturing Editor

The prospect of a new sports car factory being set up in the Midlands looks to be receding after Project Kimber revealed offers from Wales and Germany are now in pole position.
Kimber, the team behind the unsuccessful bid to buy MG Rover last year, had considered restarting production of its new Smart Roadster and Coupes at a former Dunlop factory in Radford, Coventry.
The new factory would have employed around 200 engineers making 9,000 cars a year with production beginning early next year.
Kimber had been looking to license the MG name from Nanjing Automobile (NAC) - the successful bidder in the MG Rover auction - for use on its cars.

Read full article here.