The Auto Writer

Last week The Auto Writer reported that Jill Lajdziak, the outgoing head of GM’s Saturn brand, had secured a position with Smart USA. Lajdziak is just one of many industry executives who is finding work elsewhere after their key position was eliminated or services terminated. Now, a pair of former Chrysler executives have also found new life, joining a Rochester Hills, MI auto supplier and start up, ALTe.

Retrofit Hybrid System

Tom LaSorda, the former CEO for Chrysler and Steven Landry, who was VP for Chrysler’s North American sales department, are joining with several former Tesla and Ford managers to help ALTe in its quest to supply the auto industry with its proprietary plug-in electric hybrid powertrain system. This system, according to ALTe, doubles the fuel efficiency of existing systems while remaining within EPA pollution guidelines.

Over the weekend, Crain’s Detroit Business reported that ALTe was nearing the signing of a lease on a 200,000 square foot facility in Auburn Hills (home to Chrysler), a facility once used by Lear Corporation and Delphi Automotive. That facility is expected to produce 11,000 range extended electric powertrain units for the retrofit market, increasing to 90,000 units annually by 2013.

Fleet Customers Targeted

ALTe is focusing on fleets, particularly taxis, delivery vehicles, shuttle buses, and vans, that rack up huge miles each year yet get lousy gas mileage. Those vehicles are routinely replaced by their owners every few years but ALTe wants fleet owners to keep them longer by retrofitting them with their hybrid system.

That system is a lot like the one GM is developing for the Chevy Volt, but ALTe won’t be competing with new models slated to roll out in the coming years, just extending the lives of gas powered vehicles currently in service.

According to Forbes, ALTe won’t be handling conversions rather they’ll be building the kits which will be shipped to dealers. The company is seeking 100 dealers across the country who will be licensed to make conversions after paying a $200,000 fee for their territory. Dealers would need to come up with an additional $300,000 that would cover the costs of tools and electrical testing equipment, offsetting their costs by charging customers $25,000 per conversion.

Saving Long Term

While the price may sound steep, according to the FTC the average price of a new car is $28,400. What customers would get is their vehicle back with a new powertrain installed, one consuming a whole lot less energy while emitting fewer pollutants. Over time, fleet owners could reap huge savings, a point ALTe will be stressing as it markets its system.

Reportedly, LaSorda has personally invested in ALTe and will be the company’s lead director. No word on what Landry’s role will be, but given his previous sales experience, working with licensed dealers (franchise holders) may become his assignment.

Pursuing Financing Options

ALTe is still pursuing $130 million in funding to ensure that its operation can launch. The company may be eligible to receive a significant chunk of that amount under the federal government’s Advanced Technology Vehicle Manufacturing Program, which is an Energy Department initiative.

Under the program, both Ford and Nissan have received billions in loan funding to launch their respective electric vehicles over the next year or two.

Photo Credit: Simona Dumitru