CRAFTING V-VEHICLE

Company leaders work to create a fresh model for an ailing industry

By Greg Hilburn • ghilburn@thenewsstar.com • February 22, 2010


SAN DIEGO — V-Vehicle Co.’s headquarters here is on the second floor of a nondescript converted warehouse on the seedy edge of the city’s trendy downtown Gaslamp Quarter, which was developed around the San Diego Padres baseball team’s new PETCO Park.


While much of the real estate within the center of the district has become a prime tourist playground, it hasn’t yet expanded far enough to take in this upstart American car company’s location.


Founder and chief executive Frank Varasano’s office overlooks a junk car lot, and a block away much of San Diego’s homeless population appeared to have gathered for the day.


“We’re not long for this building,” Varasano said. “But we’re on an every-dollar-counts budget. We don’t want our investors, both private and public, to think we’re living it up.”


But within the modest surroundings is a team with prime credentials, a collection of about 50 engineers and Ivy League business school graduates that clearly believes this company will ultimately become not just successful, but iconic.


The books on the chair-side table at V-Vehicle’s entryway tell of the company’s ambition: “Quotations of Henry Ford”; “Birth of the Beetle”; and “The Model T (A Centennial History)”.


“We believe our concept is revolutionary,” Varasano said. “It’s all about the business model. Think of what Amazon is to books, Southwest is to airlines and Walmart is to retail.”


Those are lofty comparisons, considering V-Vehicle hasn’t sold, or even shown, one of its mystery cars or completed construction of its Ouachita Parish assemby plant where the company said it will eventually employ a 1,400-person work force.


V-Vehicle officials agreed to allow The News-Star to tour its headquarters and conduct interviews if it didn’t reveal details about the car, its technology or its distribution model other than what the newspaper has previously reported from details obtained by investors.


Among those details: the V-car is a high-mileage, gasoline-fueled four-door hatchback that will be sold for about $10,000.


Varasano and his colleagues clearly hope a peek behind the curtain will bring the company to life for Ouachita Parish and Louisiana taxpayers, some skeptical, who have committed $82 million in cash incentives toward the project.


V-Vehicle still awaits word on $320 million in low-interest loans from the U.S. Department of Energy’s Automated Technology Vehicle Manufacturing program. If the federal loans are obtained by March 1, the the bulk of that state and local cash will be released.


The company, with the state’s and parish’s help, has also secured a $5 million federal Economic Development Administration grant.


“It’s not a paper car,” Varasano said. “It’s the real deal.”


In fact, the final touches were being put on the first of 55 drivable prototypes Thursday and Friday at Metalcrafters, Inc. in Fountain Valley, Calif., a company renowned for its construction of prototypes for many established auto manufacturers. That original prototype is scheduled to be driven on a test track in Arizona on Tuesday.


“People would be absolutely shocked at the progress,” Varasano said as he examined the prototype.


V-Vehicle’s demonstration vehicle was built in one of many confidential cubicles within Metalcrafters.


“Most of the work we do is confidential, so a lot of people don’t know we exist,” said Metalcrafters owner George Gaffoglio.


Even Gaffoglio, whose family company has built such cars as Ford’s 45th anniversary Mustang and racing legend John Force’s Funny Cars, was taken aback by the speed at which the car has gone from concept to prototype.


“I think what’s quite amazing is that (Varasano) came to me 18 months ago with the project, and here we are with this vehicle,” Gaffoglio said. “I can’t wait to see it in action.”


Varasano and Horst Metz, V-Vehicle’s vice president for assembly, said the reason the car came together so fast is because of the team the company assembled and because of the business model, which included pre-engineering input from V-Vehicle’s group of suppliers.


“We’ve captured the best talent in the industry and cross-pollinated the best ideas, and it’s powerful,” Metz said. “We’ve got DNA from Nissan, Honda, Ford, General Motors and virtually every other manufacturer out there. It’s not like a Saturn start-up with all General Motors DNA. There’s no change in that.


“Every other start-up hired engineers, who then turned over (specifications) to suppliers. We found suppliers and leveraged their capabilities. They’ve been part of the process from the start.”


Those suppliers and V-Vehicle engineers meet twice monthly in a session that Varasano has dubbed carworks, which he believes has vested the suppliers in the company.


“Suppliers aren’t used to being asked questions or for their expertise; they’re used to being handed specs and told to build them,” Varasano said.


Hari Sankara lyer, vice president of engineering and a 20-year veteran in the auto industry, agreed.


“In this project the car is in the center and everything else the spokes,” Sankara lyer said. “There’s a lot of ownership in this car. We knew from the beginning we wanted to bring the suppliers on board. They’re not used to that.”


But some industry analysts are skeptical.


David Sedgwick, editor of Automotive News, told The News-Star last year that V-Vehicle’s venture “could be a bloodbath.”


“The landscape is littered with outsiders that have tried to muscle in on the business with a newer, better, cheaper model,” Sedgwick said.


Yet Varasano and his management team were able to convince enough savvy, high-profile investors like venture capital leader Kleiner Perkins Caufield & Byers, Google Ventures and T. Boone Pickens otherwise, raising about $90 million in private capital.


“We believe this consumer value proposition and the revolutionary business model makes this an extremely powerful sales proposition,” said V-Vehicle’s corporate spokesman Joe Fisher.


Varasano believes the company can tap into American pride to make the car, which company officials like to describe as a vehicle for the American working family, a hit.


“People say, ‘Well, what about these cars from China or India that you’ll have to compete with?’,” Varasano said. “Well, what about them. Are we just going to roll over and turn over the biggest industry in the world to foreign automakers? No.”


But his confidence doesn’t diminish the challenge of breaking into a market dominated by traditional car companies, even if their model is tarnished.

“Nobody here is underestimating the challenge we face — nobody,” Varasano said. “But I believe we can do better. We have to do better.”

Ping my blog

Celebrating our 5 year Anniversary in Home Business Today!!!

Today Sue and I celebrate our 5 year Anniversary in Home Business ! We made over $3,000 our first month and over $6,000 our second month! Our first $20,000 week goes back over 3 years ago!! Care to learn more about what Free Enterprise can do for you?? For starters, financial stabilty, time freedom, and more family time. Check out
http://TodaysFreedom.com We'll see ya on the inside!! :)


Ping your blog

LEVERAGE, WHAT is IT??

LEVERAGE, WHAT is IT? How do YOU apply Lever-Age? How does your boss Use You for Leverage? Who wins with LEVERAGE in the JOB Scenario? Who wins with Leverage in FREE ENTERPRISE? IF You Used Leverage Wisely, HOW SOON COULD YOU RETIRE? IF YOU USED LEVERAGE, COULD YOU be on the GOLF COURSE During the week? THINK ABOUT IT!! DO YOU APPLY LEVERAGE???

- Tim West 17/ Feb/ 2010

Dash2Cash.com

Unleash The Champion Within

Hello Everyone! This is Tim West out of Famerville, Louisiana. We have our residence on the lovely Lake D'Arbonne, just west north-west of Monroe. This area is the location from which Coca Cola and Delta Airlines originated.

From my present perspective, after many years of struggle and hardship, sometimes I have to pinch myself! It seems almost too good to be true...... driving my Honda S-2000 away from our Dream Home, located in a fly-in lakeside subdivision located next door to the golf course and country club.

Today, I wanted to take a couple of minutes, to share my thoughts to empower you in your personal life and business .

Here is my challenge to you! Be strong, move forward, and walk in your giftings and shine!!

Who remembers the story of the STRONG MAN... the strong man called Sampson. Anybody? I knew you would! Furthermore, I wanted to speak briefly on UNLEASHING THE CHAMPION.... and if you OWN IT, UNLEASHING YOU AS A CHAMPION.... unleashing THE CHAMPION WITHIN!!

Lets focus on the Life Of Champions! The Life of a Champion is cradled in struggle and hardship. It is created with purpose, and driven with vision.... but the AWESOME PART, it is INTENDED FOR GREATNESS!!

LISTEN TO ME! IF YOU HAVE A BURNING DESIRE, YOU are CALLED... you are CALLED and will achieve MUCH MORE than you can DREAM. It is intended for GREATNESS.... so that you can LEAD, SERVE, and EMPOWER others. So, CELEBRATE your challenges, CELEBRATE your struggles..... just be THANKFUL!!

Always search out STRONG MENTORS with HIGH ETHICAL standards and values, so you can be EMPOWERED to Mastery in Human Relations. The 3 COMPONENTS of this process are learning Personal Mastery, People Mastery, and Life Mastery.

SO, it's TIME to TAKE THE LIMITS OFF!! It's TIME to STAND and BE COUNTED!! JUST PRESS ON!! IF you haven't ALREADY, YOU WILL GET IT!!!

King David wrote, THERE'S A PLACE, where I come to the END OF MYSELF IN LIFE..... THE END of my EXPECTATIONS, DREAMS, and PLANS. But there is something I KNOW......

I have seen that EVERYTHING HUMAN has IT'S LIMITS and END. NO matter HOW EXTENSIVE, NOBEL, and EXCELLENT. BUT your WORD, your PROMISE, your PURPOSE, your FAITH & DESTINY for MY LIFE is EXCEEDINGLY BROAD, and EXTENDS WITHOUT LIMITS!

As LEADERS in our respective places, we have an INCREDIBLE MISSION, we have an INCREDIBLE PURPOSE and DESTINY...... one that EXTENDS WITHOUT LIMITS! The HUMAN experience is like a DOMINO EFFECT, and we all have an impact on others.

BONDAGE and FEAR can be an issue FOR A FEW!! BUT ALWAYS REMEMBER, to search out SOLID LEADERSHIP.... people with a WIN-WIN philosophy which serves to EMPOWER YOU while they achieve their personal objectives.

TODAY, it is IMPORTANT to IDENTIFY your HINDERANCES, and clear ALL OBSTACLES from your PATH.... whatever they may be.... your attitude, your friends, your family members! WHATEVER it is, because people out OUT THERE are in NEED OF SOLID LEADERSHIP.... they are in NEED OF YOUR HELP!

ARE YOU READY TO STAND and BE COUNTED?? WE are building a VAST LEADERSHIP GROUP right here, RIGHT HERE - RIGHT NOW to pull you up... IT IS TIME TO TAKE THE LIMITS OFF!!

UNLEASH THE CHAMPION WITHIN!!

Tim West

http://Cash2Rock.com

More Than Enough

Greeting to all! I wanted to open our blog and share with you all, some of the things that has brought us "so far" in such a relatively short period of time. It seems that lots of us think or feel that a life we can relish is beyond our reach. Hopefully I can offer some insights, encouragement, and put out a challenge to those of you thinking like this.

To start with, let's take account of our "self talk"....... this is a subject of such content and character that materialize from the 6 1/2 inches that lies between our two ears, that will either make us or break us!

Next, please consider this..... the universe is filled with more materials and wealth than can ever be utilized. To harness this wealth and convert this into value for yourself and others, there are certain rules and guidelines that need to be followed. Are you ready for wealth? Are you ready for empowerment? Consider the following:

* Believe in yourself and mankind, and honor others.

* Remember the greatest asset is a optimistic attitude.

* Understand that vision backed by faith, action, and persistence is all powerful.

* Stick to being solution oriented rather than problem oriented.

* Maintain clarity and focus by avoiding negative people and situations.

* Associate only with those that foster encouragement and drive our positive energy.

* Apply the 21 Day Rule to establish new productive habits and break old destructive ones.

* Set aside quiet time for daily reading, meditation, visualization, and personal growth.

* Have weekly meetings with focus groups to mastermind and share ideas.


Tim West

http://Cash2Rock.com

Watch the YouTube videos below and get to know us!