Electric Vehicles May Energize Elkhart's Future Elkhart, Ind., is known as the RV-making capital of the world. The mayor wants to claim a new title: the electric vehicle capital of the world. Stimulus grants and other incentives are attracting companies planning to build electric vehicles to Elkhart. It's hoped the new business will fill the void created by a serious slump in recreational vehicle sales.
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Electric Vehicles May Energize Elkhart's Future

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Electric Vehicles May Energize Elkhart's Future

Electric Vehicles May Energize Elkhart's Future

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A year ago, Elkhart, Indiana had the highest unemployment rate in the country, nearly 20 percent. The city near the Michigan border is famous for making RVs, and in a way, infamous as a symbol of the depressed economy. President Obama chose it a little over a year ago as the perfect backdrop to deliver his pitch for a stimulus plan, and now - though unemployment is still high - there are some tentative signs of recovery in Elkhart.

NPR sent three reporters back to Indiana to find out what happens next for the city. In our first report, NPR's David Schaper finds Elkhart in the middle of a shift from gas-guzzling RVs to electric vehicles.

DAVID SCHAPER: Cindy Eby looks over the vast emptiness of what used to be the busy factory floor for Phillips Industries in Elkhart. And even though all of the people, all of the equipment, everything is gone, she knows exactly what went on where.

Ms. CINDY EBY (Former Employee, Phillips Industries): Here you had a house door line. It made house doors for mobile homes. Right next to it was a storm door.

SCHAPER: Eby spent 21 years at Phillips, working her way up to production supervisor in this plant that made windows and doors, many of them for RVs, until Phillips closed up shop last August.

Ms. EBY: I had seen it empty before we moved into it. Now I'm seeing it empty at the end, too.

SCHAPER: Eby says the plant closure was heartbreaking, but now she and colleague Jennifer Lakin, who came back to help clean the place out, say they actually hope to start working here again. The Norwegian company Think announced in January it will assemble a small electric car called the Think City here. Production won't begin until late this year or early 2011, so the company hasn't even begun hiring yet. But that hasn't stopped Eby and Lakin.

Ms. JENNIFER LAKIN (Former Employee, Phillips Industries): These poor guys, they're bombarded with our resumes constantly. So, we're hoping.

(Soundbite of laughter)

SCHAPER: You've already submitted yours?

Ms. LAKIN: We both have, yeah, several times.

SCHAPER: Think company officials say they'll initially hire about 100 workers, but promise to eventually hire 415 people within three years.

Mayor DICK MOORE (Elkhart, Indiana): They're talking about 415 employees in that plant, and I see a thousand.

SCHAPER: That's Elkhart Mayor Dick Moore. Even though electric cars have yet to catch on in this country, Moore is gung ho, hoping that as technology improves and prices come down, electric cars made in Elkhart will really sell.

Think isn't the only manufacturer of electric vehicles here. Navistar is set to begin production of an all-electric delivery truck, possibly within the next month.

Mayor MOORE: I really believe we could become - this area, at least - could become the electric vehicle capital of the world.

SCHAPER: That's quite a goal in what is still known as the RV manufacturing capital of the world. The mayor actually credits the notoriety from having the highest unemployment rate in country and the president's visits for sparking the electric vehicle buzz in Elkhart.

Local and state officials are going all out, offering tax breaks and incentives in addition to the federal stimulus grants and financing available to those developing green technologies.

Among Elkhart's selling points are those that made the RV industry flourish here: its location, a ready and well-trained workforce, and hundreds of small manufacturers eager to supply parts to those quiet, little two-seater electric cars.

George Thomas is CEO of Dual Form, a company that makes plastic parts mostly for RVs.

Mr. GEORGE THOMAS (Chief Executive Officer, Dual Form): So we've been devastated, to say the least, in the last two-and-half years. It's been crushing. Our business was down 60 to 80 percent.

SCHAPER: Thomas says he had to lay off 120 employees. He recently was able to bring some of them back. And now, to diversify, he's bidding to supply electric cars.

Mr. THOMAS: If Think comes on, it'll be a fantastic boost for us. We'll add another shift.

SCHAPER: But for some in Elkhart, there are too many ifs associated with electric vehicles. Glen DeYong works in an RV plant. Though he's been laid off a few times, DeYong says his faith remains in RVs.

Mr. GLEN DEYONG (RV Plant Worker): I really don't think this electric car will take off very good.

SCHAPER: DeYong says that at around $30,000, he doubts many electric cars will sell. And he adds that none of the electrical manufacturers have hired anyone in Elkhart yet.

But in a city where nearly one in six are still out of work, many in Elkhart say electric vehicles seem to hold out more promise than almost anything else.

David Schaper, NPR News.

MONTAGNE: Later today on ALL THINGS CONSIDERED, a look inside the industry Elkhart used to be known for: band instruments - asking the question: Can it come marching back.

(Soundbite of music)

MONTAGNE: You're listening to MORNING EDITION from NPR News.

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