Revenge of the Electric Car

Russia’s richest man, Mikhail Prokhorov, gets a nod of approval from Putin on his new electric car investments. Read more in the article:

Putin Backs Russia’s First Electric Car Project

By Gleb Bryanski and Gleb Stolyarov for Reuters.

From the article:

“Russia’s richest man, Mikhail Prokhorov won early backing from Prime Minister Vladimir Putin for his plan to start mass production of electric cars, Putin’s spokesman said on Tuesday.

Russia is seeking to modernize its commodity-based economy, which was hit hard by the global crisis when energy prices fell, and wants to achieve growth in technology sectors where it believes it may have some competitive advantage…

“Putin listened very attentively and wanted to see this project discussed in detail with all the ministries involved as soon as possible,” Peskov told reporters without elaborating on the details of the plan.

Industry professionals who had seen the early design of Prokhorov’s car told Reuters that the vehicle would be a Golf-class sedan with a body made from plastic. They said Prokhorov was ready to provide project financing for two years.

They said the target price for the car would be around 8,800 euros and it would be a pure electric vehicle as opposed to a hybrid, which runs on both a conventional engine and battery-powered electricity.”

Here’s the full text of the entire article, in case the link goes bad:

http://www.reuters.com/assets/print?aid=USLDE60I22620100119Putin backs

Russia’s first electric car project
Tue, Jan 19 2010

* Tycoon Prokhorov wins Putin’s backing for electric car

* Russia’s electric car could cost 8,800 euros – sources

By Gleb Bryanski and Gleb Stolyarov

MOSCOW, Jan 19 (Reuters) – Russia’s richest man, Mikhail Prokhorov won early backing from Prime Minister Vladimir Putin for his plan to start mass production of electric cars, Putin’s spokesman said on Tuesday.

Russia is seeking to modernize its commodity-based economy, which was hit hard by the global crisis when energy prices fell, and wants to achieve growth in technology sectors where it believes it may have some competitive advantage.

Prokhorov, a gold-to-basketball entrepreneur who sold some of his most lucrative assets just before the crisis, is sitting on a cash pile he is ready to invest. He has previously demonstrated strong interest in technology.

“Putin listened very attentively and wanted to see this project discussed in detail with all the ministries involved as soon as possible,” Peskov told reporters without elaborating on the details of the plan.

Industry professionals who had seen the early design of Prokhorov’s car told Reuters that the vehicle would be a Golf-class sedan with a body made from plastic. They said Prokhorov was ready to provide project financing for two years.

They said the target price for the car would be around 8,800 euros and it would be a pure electric vehicle as opposed to a hybrid, which runs on both a conventional engine and battery-powered electricity.

Prokhorov’s Onexim Group currently has no car production facilities. It was not immediately clear whether Prokhorov planned acquisitions or partnerships to complete the project or whether he had asked Putin for funding.

France’s Renault SA <RENA.PA>, which has a stake in Russia’s largest carmaker AvtoVAZ <AVAZ.MM>, and its Japanese partner Nissan Motor Co Ltd <7201.T> have been the most aggressive proponents of pure electric vehicles.

In August, the alliance unveiled a zero-emission, hatch-back vehicle called “Leaf;” it plans to start selling the first cars in the United States, Japan and Europe towards the end of 2010 at prices comparable to those of a gasoline-engine cars of the same size.

Electric car enthusiasts say that current battery technology has advanced significantly from that of earlier models, making electric cars cost-efficient. Russia’s vast defense sector has some expertise in making batteries. (Writing by Gleb Bryanski, editing by Gerald E. McCormick)