Monroe plant may acquire major project

• By GARY PERILLOUX
• Advocate business writer
• Published: Jun 16, 2009 - Page: 1A

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Louisiana industry recruiters are revved up about a potentially game-changing prospect in the automotive sector, one that could yield more than 1,000 new jobs at a now-closed Monroe plant.

An announcement could come as soon as Wednesday from the unnamed company.

In the meantime, state leaders caution that the state’s war chest for economic development — a megafund that once topped $400 million — could be depleted and reach deficit levels if the Monroe prospect, an Iberville Parish chemical plant and a St. James Parish steel mill all select Louisiana.

But for now, the mood is one of cautious pre-celebration.

“It’s certainly not a done deal, but there’s a lot of reason to be optimistic about the outcome,” said Stephen Moret, the state’s economic development secretary. “This is a project that will be of significant importance to the national economy.”

The (Monroe) News-Star reported the announcement would come at midday Wednesday; Moret on Monday would say only that an important project update would come Wednesday, if not an actual announcement.

In Monroe, City Council member Arthur Gilmore told The Associated Press the prospect would build fuel-efficient vehicles with investment from California venture capitalists Ray Lane and John Doerr of Kleiner Perkins Caufield & Byers, with Gilmore saying, “It’s going to be a great stimulus for all this region.”

Among the green technology companies the KPCB venture capitalists are investing in is Fisker Automotive Inc., a new Irvine, Calif.-based car manufacturer that plans by 2010 to begin producing the Karma, a plug-in luxury hybrid sports car costing $87,900 and resembling the Chevrolet Corvette.

The Karma could obtain fuel efficiency of 100 miles per gallon and maintain speeds of up to 95 mph on all-electric power for the first 50 miles. After that, a gas engine would deliver more powerful performance in conjunction with a lithium ion battery and extend the vehicle’s range, according to Fisker press materials on the Internet.

Fisker expects to make 15,000 Karma models a year and wants to line up 40 luxury car dealers by the end of June.

Among many other companies, KPCB is also an investor in Segway, the two-wheeled personal transportation vehicle.

Calls to Fisker and KPCB public relations representatives weren’t returned.

Citing confidentiality agreements, Moret said he couldn’t identify the industry sector in which the prospect operates. He did confirm that Louisiana has negotiated with the manufacturer since August and that the 425,000-square-foot former Guide Corp. auto headlamp site in Monroe, which closed permanently after a 2006 announcement, is the state’s preferred site.