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Bush to Visit Solar Cell Plant Monday in Auburn Hills

Posted on: Friday, 17 February 2006, 06:00 CST

By Kathleen Gray, Detroit Free Press

Feb. 17--President George W. Bush will follow up on his State of the Union push for alternative energy research and development Monday when he visits a long struggling but recently profitable Rochester Hills-based company that makes solar panels, advanced batteries and hydrogen cells.

Energy Conversion Devices has been developing and producing alternative energy sources since 1960. Bush said last month that he wants to increase federal funding for alternative energy sources. He will visit the company's solar cell plant in Auburn Hills.

It will be Bush's second visit to the state since the 2004 election season when he lost Michigan to Democrat John Kerry. Bush spoke at the Detroit Economic Club last February.

White House officials said Bush is talking about his energy initiatives in Wisconsin and Auburn Hills on Monday. In his State of the Union address last month, Bush called for investing more than $1.2 billion in the development of advanced batteries, hydrogen fuel cells and alternative fuels to reduce the nation's reliance on foreign oil.

Republicans in Michigan confirmed Bush would visit the company's United Solar Ovonic plant in Auburn Hills. The company was founded in 1960 by Stanford Ovshinsky and made the photovoltaic cells that converted sunlight to electricity on Russia's Mir space station.

In the 1980s, the company developed small, powerful batteries made from nickel metal hydrides that power everything from cell phones to cars.

The company is working on hydrogen fuel cells for vehicles. The company has struggled financially for more than 40 years, but its stock (traded on NASDAQ) has skyrocketed from the single digits in 2004 to $43 a share Thursday.

The company announced Thursday that it will triple solar panel production by the end of 2007. The company's chief executive officer is Robert Stempel, former chairman and CEO of General Motors.

Bush's proposals for energy research and development is good news for the struggling U.S. auto industry, David Cole, chairman of the Center for Automotive Research in Ann Arbor, said Thursday.

"The auto industry is very excited about his comments on alternative energy," said Cole. "But hopefully he'll also understand that the problems in the industry are related to a set of burdens that newer companies don't have.

"If GM had Toyota's health care costs, GM could do five more new products a year."

Gov. Jennifer Granholm has made the development of alternative energy sources for vehicles a key feature of her economic development strategy. She was encouraged that Bush's visit was focusing on diversification of energy sources.

"But we are disappointed that he would come to the heart of the manufacturing industry and not address his failure to enact trade policies that help our American manufacturers keep jobs in this country," said Granholm's spokeswoman Liz Boyd.

Michigan is racing to become the alternative energy resource hub for the United States. The state is among the leaders in alternative energy research, in large part because of work spearheaded by the automotive industry.

In Auburn Hills, City Manager Scott Randall was waiting for confirmation of the visit.

"My first question was what time is he coming and is the Palace having an event the same day," he said, noting with relief that the arena will be empty Monday.

Contact KATHLEEN GRAY at 313-223-4407 or gray@freepress.com. Staff writer Alejandro Bodipo-Memba contributed to this report.

photo

George W. Bush is pushing energy alternatives.

About the company Bush will visit

Name: Energy Conversion Devices.

Founded: 1960 by Stanford Ovshinsky, president of the company.

CEO and chairman: Robert Stempel, former chairman of General Motors.

What they make: Solar panels, rechargeable batteries and hydrogen fuel cells.

Employees: 746.

2005 sales: $156.6 million.

Net income: $53.2 million, up from a loss of $51.4 million in 2004.Fun fact: In 1996, a four-passenger car equipped with the company's advanced battery won the Tour de Sol Race from New York to Washington, D.C., driving 373 miles on a single charge.

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Source: Detroit Free Press

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