While this statement may sound stupidly obvious, it is true:
It?s tough to make it as a start-up automaker. Whether you?re talking about electric vehicles, race cars, or luxury sedans, it?s all the same ? you need a lot of capital investment, engineering know how, great design, smart marketing, and a sales network of some kind.
Smith Electric Vehicles has been struggling through the process. The company is ready to go public and needs investors to pay down its debt. The Kansas City, Mo.-based maker of electric delivery vehicles supplies trucks to clients such as Coca-Cola, FedEx Corp. and DHL, and filed for its initial public offering in November. UBS Investment Bank, Deutsche Bank Securities and Barclays are lead underwriters for the deal, which is expected to sell 4.45 million shares at between $16 and $18 in its IPO. The Nasdaq IPO is expected to bring in about $76 million.
The company has downsized its vehicle production expectation for 2012 by nearly 40%. In its filing with the Securities and Exchange Commission, the company disclosed its reduced estimated production target for this year, down from 620 units to 380 vehicles, due to cash and supply constraints. The company produced 79 units in the first six months of this year and intends to boost production later this year to meet its lowered goal. The U.S.-based company was purchased in 2011 from its UK-based parent company, which has been in operation in Europe since the 1920s.
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