Saudis may be known for a lot of things, but let's face it – comedy is not one of them. Israelis on the other hand... have you seen The Zohan? In any event, it's not surprising that people in Saudi Arabia are outraged at something from Israel, but this time it has nothing to do with military actions or residential construction, and to be fair, while talk of boycotts is filling the air once again, they're not actually blaming Israel itself for anything. Instead, Nissan is the boycott target.
The spate was started by a commercial Israeli TV that depicts Arabian oil sheikhs getting medieval on a Nissan Tiida. The implication is that the car's fuel efficiency is harming the sheikhs' business interests. The Saudi regime, along with other oil-producing Gulf states, is threatening to boycott Nissan – which itself is collaborating on the development of the Project Better Place electric car system in Israel – if the automaker doesn't apologize.
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Back in 2004 serial automotive entrepreneur Malcolm Bricklin announced plans to collaborate with "rogue" Chinese automaker Chery Motors to bring new cars to the US market. Chery is referred to as "rogue" because the company never actually got permission from the Chinese government to get into the car business. Needless to say, the deal eventually fell apart when Chery decided to hook up first with Israel Corp and Quantum LLC for a different joint venture which has also yet to come to fruition.
Bricklin's company, Visionary Vehicles, which is now know as V Cars LLC, has now filed a lawsuit against Chery, Israel Corp, and Quantum LLC, et al. The suit is being filed under RICO statutes, typically used to go after mobsters, and V Cars is hoping to pursue Chery for the potential profits the company feels it could have made over the course of the deal. How much? $14 billion.
V Cars claims they provided Chery with business plans and ideas (along with $26 million in up front investments) which they then used for their own business after abandoning the deal. During a conference call today, Bricklin explained that he wants to show Chery and other Chinese companies that if they are going to do business with western companies they need to deal ethically and follow the rules. V Cars is also seeking injunctions to prevent Chery from selling any vehicles based on these plans in North America.
A landmark was recently passed on Israel's road to reduced dependance on foreign oil when Renault and Project Better Place held a demonstration of an electric car that will hit Israeli streets next year. For those unacquainted with Project Better Place, the Silicon Valley start-up headed by tech guru Shai Agassi has teamed up with Renault-Nissan to build and deploy fully electric Meganes in the seaside Middle Eastern country. The batteries that will power the vehicles are built by a joint-venture between Nissan and NEC, have a 125-mile range and will be supported by half a million charging stations and hundreds of battery-swap stations. Those specs should be enough to satisfy drivers in a country barely 60 miles between the Jordan River and the Mediterranean Sea, and 260 miles from the Red Sea to its border with Lebanon. An initial launch fleet is scheduled to hit roads next year before sales begin in late 2010. The hope is that Israel will prove a suitable test case before the project can be launched in other countries. Norway has already signed on, but suitability for bigger countries (like the United States, where long commutes are commonplace) will largely depend on advances in battery technology.
Renault-Nissan president Carlos Ghosn is arguably one of the most effective automotive industry executives, and having just embarked upon a tour of the Middle East, may prove to be more effective than the endless stream of government and military envoys parading in and out of sand-swept capitals.
Ghosn flew to Israel, where he met with Prime Minister Ehud Olmert and President Shimon Peres and announced a project to launch an electric vehicle network in the country's burgeoning and overcrowded Mediterranean metropolis of Tel Aviv. The project, called "Better Place", is being led by former SAP executive Shai Agassi (seen shaking hands with Ghosn above), and is financially supported by Israel Corp, the holding company that controls shipping giant Zim and recently embarked upon an automotive joint venture in China. (The Knesset, Israel's parliament that usually has to support any such ventures itself financially, has paved the way by preparing supportive legislation.) Renault will develop the vehicles, which are projected to have a 160-km range on the highway, or 100 in the city, hit 100km/h (62mph) in 13 seconds and top out at 110 km/h. The cars are expected to hit the shuk (that's "market" in Hebrew and Arabic) in 2011.
While he was at it, Ghosn hopped over to Morocco to announce the construction of a new plant for Renault and Nissan. (Yes, we know Morocco is not technically part of the Middle East, but Northern Africa is often grouped together with it. So please don't shoot us.) The new factory in Tangiers will have a capacity of 400,000 vehicles per year and will employ 6,000 directly and 30,000 indirectly. Renault will use the facility to build cars on the cost-effective Dacia Logan platform, while Nissan will manufacture light commercial vehicles there, as well.
