Detroit has put the world on wheels and automakers continue to innovate, especially with electric vehicles. With its developing reputation in the electric space, it’s not too unexpected that Motor City is also attracting more and more e-bike companies.
Vela Bikes, an electric bicycle manufacturer introduced in Brazil 12 years ago that expanded to the U. S. With the rise of COVID-19 e-bikes, he heard the industry buzz about Detroit and, after some due diligence, made the decision to move production and the meeting. of their motorcycles from China to Detroit, a procedure underway lately.
“After some challenging years for the global supply chain, we are excited to take a step toward producing our motorcycles in the United States,” said Justin Kosmides, co-founder and CEO of Vela Bikes.
Vela Bikes components with Cardinal Cycling Group, an Arkansas-based bicycle investment and control company that specializes in the production of electric bicycles in the United States and Europe. CCG bought Detroit Bikes earlier this year and continues to manufacture that logo and others at the 50,000-foot factory on the city’s west side, which component of the deal.
Vela maintains its U. S. headquarters. It is based in Brooklyn, N. Y. , while its operations, logistics and production move to Detroit. “We are developing and comparing the transfer of more of our team members to Detroit,” Kosmides said.
“Detroit is one of only six services in the country that can build motorcycles on a large scale and at a lower cost,” Kosmides said, saying it’s the best option. “The city has production capacity through hard work (welders, machines, etc. ). We also look forward to leveraging our business in electric car industry/technology development in the future.
He added, “For the past two years, sales of e-bikes in the U. S. have been in the U. S. The U. S. has been between 800,000 and one million (units) a year. There is no explanation as to why the U. S. They should not play a bigger role in the generation of those bikes.
Most of Vela’s electric motorcycles are made in China and Taiwan, Kosmides said.
Vela Bikes began moving operations in October and expects to complete them by spring 2023. The company is building motorcycles in Detroit to meet holiday demand, as it has set out to manufacture 5,000 motorcycles by 2023.
Vela manufactures two styles of bicycles, costing around $1,800.
“We discovered a wide diversity of cyclists, from young commuters to baby boomers who need to get out and ride further afield with a little support,” he said of Vela consumers. “Vela is exclusive in the sense that two-thirds of our consumers are women, which is contrary to the overall e-bike market, which tends to lean more towards men. “
Vela and Cardinal Cycle Group are connected in Detroit, as is Newlab, a privately held company and incubator in Brooklyn, N. Y. specializing in start-ups with more than a hundred companies to date. Newlab, which counts Vela Bikes among its members, also sees potential in Detroit and opens a new 250,000-square-foot incubation area in central Michigan in early 2023, Kosmides said.
Michigan Central is a mobility hub that comes alive at Michigan’s excellent but gated Central Station, as Bill Ford and Ford Motor Co. They lead the rate as it reorganizes. Google, the city of Detroit and the state of Michigan are also involved.
Coincidentally, the Cardinal Cycle Group-owned plant where Vela Bikes, Detroit Bikes and other brands are assembled is a few miles from Ford’s Rouge plant, which gave birth to the auto industry.
Vela’s motorcycle tastes are similar to Detroit Bikes, which also helps. “We were lucky to have a frame and build taste very similar to what was manufactured at the Detroit Bike facility,” Kosmides said.
The developing e-bike business is news for Trevor Pawl, Michigan’s director of mobility. It has touted the status for electric vehicles, battery brands and portion brands. The e-bike business has grown more organically as a branch.
“Really, this domain is being sold,” Pawl said. Newlab and Detroit Bikes explained to Vela why making an investment and locating in Detroit would be strategic. Frankly, the state didn’t have to spend much time convincing Vela that Michigan will be, the company already sold on profits.
There is no doubt that the burgeoning electric mobility sector will play an increasing role in the future of the region.
“They are emission-free, easy to park, affordable to charge and use, take up less space than a car, and can still move citizens in a timely manner,” Pawl said. “Electric motorcycles can be a glorious complement to an electric vehicle in any Michigan community. “
Kosmides referred to Detroit and outside China.
“Overall, we have and will have more resilience in our supply chain, greater stock control (thanks to particularly shorter production windows), quality control, reduced shipping issues, and countless production difficulties in China since COVID (with lockdowns, travel restrictions),” he said. “Also a 25% tax on electric motorcycles in China, which, lately exempt, had a high probability of return, which was a consideration. “
Vela Bikes is built on the foundation laid by entrepreneur Zak Pashak, who founded Detroit Bikes in 2011. “It has begun to chart a new course and Cardinal Cycle’s investment and commitment to Detroit continue to chart the course,” Kosmides said. we’re going to get more brands to do a serious assessment of relocation and Detroit in particular. “
The partnership between Vela and Cardinal Cycling Group supports the revitalization of Detroit’s production through job creation.
“CCG is excited to partner with the Vela team to further penetrate the e-bike market,” said Tony Karklins, CEO of Cardinal Cycling Group. “Part of what makes the compatibility so seamless is that Vela’s signature styling is made of chromed metal that CCG’s Detroit motorcycles have relied on for years. “
Kosmides said, “Our partnership with CCG represents our commitment to creating a better product and enjoying our cycling network, and the opportunity to do so in the U. S. “The U. S. makes it even more exciting. “
Kosmides said sales of e-bikes have jumped as much as 240 percent in the past year, a trend that will likely continue with fickle gas prices, environmental considerations and other people who don’t want to live healthier lives.
“E-bikes are expected to continue to be the best-selling electric vehicle for the next decade, and we need American personnel to take advantage of that growth,” he said.
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Contact Carol Cain: 24-355-7126 or clcain@cbs. com. She is the lead producer/host of “Michigan Matters,” which airs Sunday mornings on CBS Detroit. Consult Bill Ford, governor. Gretchen Whitmer, Mayor of Detroit. Mike Duggan and Google Chief Financial Officer Ruth Porat on Sunday’s show.