Local Motors to build microfactory in Singapore by 2016
SINGAPORE — Local Motors’ CEO Jay Rogers announced that the company plans to open a microfactory in Singapore by 2016. Rogers was one of the keynote speakers at F+L Week 2015, which opened today at the Pan Pacific Singapore.
Rogers said Singapore is an ideal location for its first microfactory in Asia. He said a microfactory, which typically employs about 200 direct people, and is the largest job multiplier with 11 to 15 people, using “open source” is a unique opportunity for Singapore.
Because the island-state requires a certificate of entitlement, which is a quota license received from a successful winning bid in an open bid uniform price auction granting the legal right of the holder to register, own and use a vehicle in Singapore for a period of 10 years.
“We’re in conversation with a number of partners. We need land, polytechnic talent and the ability to do research.” Since the manufacturing industry in Singapore is basically nonexistent, Rogers sees that having a microfactory here wil make a large dent in the automotive industry.
The typical Singapore microfactory will produce about 3,000 units per year. While this is a small , it also allows for a much quicker trip through the cycle of designing, building and selling.
Sidestepping the import duty costs to vehicle ownership in Singapore is a big advantage and will allow Local Motors to sell cars in a place where it generally can’t be done. However, Rogers says, the greatest advantage to the people of Singapore is the money saved. Each microfactory, he says, has the ability to generate USD150 million.