Governor Kulongoski tours electric vehicle companies in southern Oregon

Governor awards $100,000 to Ashland electric motorcycle company

August 31, 2009 -- (Ashland) – Oregon Governor Ted Kulongoski today toured two start-up electric vehicle companies in southern Oregon as part of his initiative to transition the state toward cleaner, more sustainable transportation options.

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While visiting Brammo, Inc., an electric motorcycle company headquartered in Ashland, the Governor announced a $100,000 grant from his Strategic Reserve Fund for workforce training to assist the company in growing their workforce by more than 300 employees over the next two years.

The Strategic Reserve Fund was established by the Legislature to support economic and community development in Oregon. The fund awards are at the discretion of the Governor in consultation with the Director of the Oregon Business Development Department (Business Oregon).

“Investing in our small, start-up companies is investing in Oregon’s future,” Governor Kulongoski said. “And I believe that future must be focused on clean and sustainable technologies, just like the cutting-edge work being done at Brammo.”

Brammo, Inc. has developed and prototyped an all-electric drive motorcycle called the Enertia, providing a clean-tech, environmentally-friendly transportation option for people to use to commute to work and other shorter trips. The company plans to invest an estimated $51 million over the next five years into production of the all-electric motorbike, including an $18 million headquarters and production facility in Ashland.

The company currently has 53 employees with plans to grow to 247 jobs by the end of 2010 and more than 350 by the end of 2011. The grant awarded by the Governor today builds upon local investments by Jackson and Josephine counties to help the company seek and train qualified employees for manufacturing this new product during the remainder of 2009 and 2010.

“This investment is exactly what the Strategic Reserve Fund is intended for – to help small businesses with good ideas committed to make Oregon their home,” the Governor continued. “This state contribution will deliver far greater dividends in the future, not only for the employees of Brammo and the local community, but in advancing my goal of reducing our greenhouse gas emissions while expanding clean, sustainable transportation choices for Oregonians.”

Brammo estimated that approximately 5,000 motorcycles will be manufactured in the first 12 months of production with annual production growing to more than 45,000 by 2012. Brammo has secured an agreement with Best Buy to market and sell the motorcycle in both domestic and international markets. Estimated retail prices of the Enertia motorcycle will start at $12,000, however once full production is reached, the cost will lower to $6,500. The company is also designing an entry level Encite model with will retail for approximately $2,500 to $3,500.

“I applaud the work of Brammo and their choosing to make their investment in Oregon,” the Governor closed. “I am proud that the state can partner in this endeavor.”

The Governor also toured Barefoot Motors, also a small start-up company that relocated its headquarters from California to Ashland in October 2008, which produces a “green” off-road utility vehicle that integrates best-of-class electric propulsion technologies into rugged, high-performance, 100% electric, heavy-duty all-terrain, zero-emission vehicle for agricultural, industrial and land management applications.

Barefoot kicked off assembly production with a ribbon cutting event on June 25, 2009. They are now producing approximately 10 Earth Utility Vehicles (EUV’s) per month and plan to increase production to 100 per month in current facility. The company currently employs 12 with an expectation to more than double the staff to 30.

“These companies represent the new direction for transportation not only for Oregon but for our nation,” the Governor said. “I look forward to strengthening the state’s relationship with both companies so we are doing everything we can to help them succeed and grow the use of this next generation of vehicles on our roads and in our fields.”

Source: Oregon Governor