Vacaville among likely sites for auto plant (Tesla)

City among likely sites for auto plant
All-electric car maker given tax break
By Melissa Murphy
Article Launched: 07/01/2008 07:06:27 AM PDT


The company that built the first mass-produced, all-electric car will keep its manufacturing plant in California and is reconsidering Bay Area cities where it can set up shop.
The city of Vacaville was once on the list of ideal places for Tesla Motors Inc. to build its all-electric Model S sedan.

Whether the city, known for its history of electric vehicle support, is still being considered isn't certain but local officials are hopeful.

"We are very interested and we would like to see them here," said Vacaville's Economic Development Director Mike Palombo. "There are some direct benefits, it would provide jobs and income to the city."

Palombo said that Vacaville's reputation of being a "hot bed of support" makes the city stand out, pointing to the fact that the city has more electric vehicles per capita than any other city in the United States.

"We have a very strong history," he said. "That's why we're known as 'Voltageville.' "

Vacaville's proximity to the University of California, Davis and the University of California, Berkeley is also a plus, according to Palombo.

Michael Ammann, president of the Solano Economic Development Corporation, said that when Tesla was considering Bay Area cities in the past, it had a requirement of a two-hour radius from its head quarters in San Carlos.

Vacaville falls inside that radius, he said.

"As far as we know we're still in the game," Ammann said. "But other cities are being considered."

Tesla considered moving to New Mexico to build another model, but announced Monday that it worked out a tax break deal with Gov. Arnold Schwarzenegger and state Treasurer Bill Lockyer, so the Silicon Valley-based company will remain in California.
"Today's announcement is great news for California, our economy and our environment," Schwar- zenegger said in a press release. "We want these cutting-edge companies not to just start in California and do their research and development here - we want them to build in California. ... I have always said that we must protect our economy and our environment at the same time, and today it is clear that we are once again demonstrating to the world how to do that."

The tax break allows Tesla to avoid paying state sales tax on equipment it buys to build its Model S. That will save the company 7 percent to 9 percent on each purchase. The Model S is a five-passenger sedan and is expected to cost about $60,000 and can travel 225 miles between charges to its electric engine.

Schwarzenegger was among several celebrities who lined up to buy Tesla's first-generation electric sports car, the Roadster, which has a base price of $109,000. The Roadster goes from a dead stop to 60 mph in just under four seconds and tops out at 125 mph. It takes three and a half hours to recharge when its batteries are depleted.

Ammann explained that although Tesla announced it would remain in California, the process of finding an ideal location for its manufacturing plant is ongoing.

"They announced the decision to stay in order to position themselves to receive federal grants," explained Ammann, adding that Vacaville would be a good choice. "Vacaville has led the way in promoting alternative vehicles. It has put Vacaville certainly in the mix (of choices)."

The Associated Press contributed to this report.