Behind the front-page news were the more personal stories of job losses — hundreds of thousands across the industry, according to the U.S. Labor Department — that were part of the aftershocks. Even so, some who found themselves on the outside discovered that their talents were in demand elsewhere.
Instead of playing musical chairs with competitors or starting down entirely new career paths where their knowledge and experience might not be so highly valued, many of these Detroit graduates have found greener pastures at electric car startups and suppliers.
Technological advances in batteries, motors and electronic controls have created new possibilities for electric-car ventures. After plodding along for two decades, the carmaking operations are accelerating with the help of a new business model: small, agile organizations aided by a network of outside suppliers, developers and consultants.
That’s good news for the engineers and executives with the expertise needed to move this emerging technology out of the lab, down an assembly line and into customers’ hands.
Credit the American Recovery and Reinvestment Act of 2009 for greasing the skids at the manufacturer level. Nearly $3 billion US in loans and grants helped firms developing electric, hybrid-electric and alternative-fuel vehicles gain momentum. The companies, in turn, often hired former Detroit Three employees who had the required skills.
The downturn made available proven leaders such as Jim Taylor, who, after a 30-year career on small and large engineering teams, was ready for a change. One of the first dozen employees of GM’s Saturn division, then later the head of Cadillac and Hummer, Taylor had enjoyed more highs than lows. After GM, he joined Amp Electric Vehicles, an Ohio startup whose ranks include members of the team that developed GM’s EV1 electric car in the 1990s, as vice chair and chief executive.
“The opportunities here range from the conversion of existing cars to electric drive to establishing new relationships with major manufacturers to helping develop electric-propulsion components,” Taylor said. “All the experience I gained at GM prepared me well for this environment, where there are far more questions than answers.”
He’ll have plenty to do. A utility in Iceland recently hired Amp to provide 1,000 electric SUVs, and Michigan-based DTE Energy wants Amp to electrify part of its fleet.
Tom Reichenbach, chief engineer at Aptera, an electric carmaker, is another Detroit graduate thriving in this emerging field. Though he lacked electric-car experience, Reichenbach spent the last half of his 26-year stint at Ford working on racing and high-performance projects. As engineering manager for the special vehicles team, he helped to develop the Ford GT and the Mustang Shelby GT500. And until he left two years ago, he was assistant chief engineer for the EcoBoost V-6 engine.
“I was lucky to enjoy a string of fascinating projects,” Reichenbach said. “But when the downturn hit and Ford was into a fourth round of layoffs, I updated my resumé. When my boss mentioned that, at 56, I was eligible for retirement, I knew I was in trouble.”
He added: “Everyone in Detroit experienced a scare when gas prices spiked and buying habits changed overnight. But I lost faith in Ford’s future when the company’s entire electric vehicle team was part of the first round of engineering layoffs.”
Looking for a challenge less dependent on petroleum supplies, Reichenbach interviewed at two electric-car startups, Aptera and Fisker. Tesla Motors, also on his list, was not hiring when he went prospecting for a new job.
Aptera’s outlook convinced Reichenbach it was a company where he could thrive. “Their business plan was modest, and their growth prospects were geared to cash flow,” he recalled. “Aptera’s desire to build a light and aerodynamically efficient — albeit unusual looking — car made sense.”
He said his new job “is way more fun and rewarding than working at Ford,” adding, “The four-year incubation times there were torture.”
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