Company Spotlight: Ricardo

The importance of first-mover advantage in a rapidly developing market has long been a mantra of business schools the world over, and a fine example of such market foresight exists in Van Buren Township.

In January of this year, Ricardo Inc. opened its new Battery Systems Development Center and the company’s Detroit Technology Campus in Van Buren Twp. The new facility was targeted at the rapidly expanding demand for hybrid and electric vehicle systems for the defense sector, for truck and off-highway applications, and from the company’s more traditional automotive customers.  Before deciding to build the facility in Van Buren, Ricardo considered a range of possible locations within its established global network of technical centers. Ultimately, it was incentives in the form of a $991,000 state tax credit from the Michigan Economic Development Corporation and a further $75,000 tax credit from Van Buren Township that helped secure this state-of-the-art facility for the metro Detroit area.

The creation of such a unique facility reflects Ricardo’s strategic vision for the increasing electrification of vehicle propulsion. The robust activity during the first few months of the center’s existence has confirmed the wisdom behind the company’s decision to enter and compete in this market. According to Karina Morley, Global Director of Controls and Electronics for Ricardo, “The imperative to deliver robust, cost-optimized and well engineered systems fully integrated with the vehicle and its control systems was a key influence in our decision to invest in our Battery Systems Development Center. We are already using this facility in our research programs. For example, we are taking cell technologies from specialist suppliers and designing and developing battery systems mechanically and thermally to make them ready for use in vehicles. We are also working on production programs for customers in which visiting engineers are based on site in order to work in partnership with the in-house team. As the new facility is a fully integrated into our organization, we are ideally positioned to handle the integration of all aspects of battery systems into vehicles. In this way we can take the development process from the cell technology to vehicle implementation; designing the pack and the battery management system as well as the hybrid powertrain.”

Ordinarily, the move to enter into a new market and build a completely new type of development facility takes time, but in the case of Ricardo, the company is extremely well-positioned to take advantage of its investment and new market demand for electric vehicle technology. President Obama’s announcement in August of $2.4 billion in grants to accelerate the manufacturing and deployment of the next generation of US batteries and electric vehicles further justified Ricardo’s strategic decision to build the Van Buren facility. Combined with the company’s deep expertise in the development of electronic controls, hybrid transmissions and vehicle systems, the facility provides Ricardo with the capability of providing fully integrated, turnkey battery systems to its customers.

Anthony Smith is with the Ricardo Media Office