Electrical appliance giant Dyson announced on 10 October its decision to scrap a $4.3 billion project to build electric cars. The plans had included its maiden electric car plant running in Singapore by 2021.
Inventor James Dyson, Founder of the British company that is known for its vacuum cleaners, said in an e-mail to employees that its engineers had developed a 'fantastic electric car' and 'have been ingenious in their approach'. But despite having 'tried very hard throughout the development process', the electric car could not hit the roads because it was not 'commercially viable'.
In September 2017, Mr. Dyson announced that he would make an electric car. A year later, he revealed that he would make the car in Singapore. In May this year, the firm kicked off the hiring of automotive design engineers and free trade agreement specialists, among others, for the proposed vehicle plant.
"I wanted you to hear directly from me that the Dyson board has therefore taken the very difficult decision to propose the closure of our automotive project," he wrote to employees.
According to the BBC, Mr. Dyson said that the company was closing electric car facilities both in the United Kingdom and Singapore. The project employed 500 people in the U.K..
He maintained that the car project was 'not a product failure, or a failure of the team. Their achievements have been immense - given the enormity and complexity of the project'.
"For those who cannot, or do not wish to, find alternative roles, we will support them fairly and with the respect deserved," he said. "This is a challenging time for our colleagues, and I appreciate your understanding and sensitivity as we consult with those who are affected."
Mr. Dyson, who earlier this year decided to relocate the company's head office to Singapore from the U.K., has a net worth of about $16.4 billion, making him the U.K.'s second-richest person.
The $4.3 billion intended for the electric car project would still be spent on developing other products, including its battery technology, he said in his e-mail on Thursday. He said Dyson will continue its $4.3 billion investment programme into new technology and grow The Dyson Institute of Engineering and Technology.
Dyson will also focus on manufacturing solid state batteries and other fundamental technologies that it has identified. These include sensing technologies, vision systems, robotics, machine learning, and artificial intelligence. "This is not the first project which has changed direction, and it will not be the last," said Mr. Dyson, adding that the company will continue to "deepen our roots both in the U.K. and Singapore".
Mr. Tan Kong Hwee, Assistant Managing Director of EDB, said the Singapore Government understands that Dyson has chosen to focus on growing its core home business, including new product categories, and on the development of its battery technology. He said that Singapore will play an important role in Dyson's growth plans.
This will lead to the creation of job opportunities in the company's headquarters, research and development, and manufacturing teams, as well as the development of capabilities in the fundamental technologies that Dyson identified.
"Singapore and Dyson have enjoyed a strong partnership for more than 10 years and we look forward to building on this partnership," he said.
