Interview: Achates Power makes the move to Detroit
By: Freddie Holmes Posted: http://www.automotiveworld.com/analysis/achates-­‐power-­‐makes-­‐move-­‐detroit/ -­‐-­‐ Achates Power, a supplier of internal combustion engines, is headquartered in San
Diego, California, and is now expanding its footprint by opening a new engineering
facility in Detroit.
The move comes as part of the company’s rapid growth, with two new OEM contracts
secured earlier this year. The new facility in Farmington Hills will hire 12 engineers and
programme managers initially, with plans to extend this to a total of 20 employees by the
end of 2015. The demand for Achates Power’s opposed piston two-stroke engine has
seen “rapid growth in customer demand,” according to the company, and it will look to
utilise its footprint in Detroit to push this demand further.
Automotive World caught up with David Johnson, President and Chief Executive of
Achates Power, to discuss the significance of the move to Detroit and its plans for further
growth.
Tripled in size
Achates Power takes testing very seriously, and has presented data on its opposed
piston two stroke engine to automotive companies around the world. “This has really lit
the market on fire,” Johnson says, and the supplier has signed multiple contracts as a
result. It is this growth of the customer base that has enabled the company to expand
and build the office in Michigan. It is a significant development for a relatively “small”
company, he adds: “We had 30 employees, and now we’re at 80 – so it’s nearly tripled in
size.”
Automotive World Ltd Company registered No: 04242884 Registered Office: 1-­‐3 Washington Buildings, Stanwell Road, Penarth,CF64 2AD | Registered in England and Wales David Johnson President and Chief Executive Achates Power
One of the main benefits of being in Detroit is its convenience, “but at the same time,
adding Detroit to our mix is a very important step as it says ‘we are a company that
needs to be in the key US automotive sector.’ The supply base is there, the wealth of
skills and activities are in Michigan, and being close to our customers and suppliers is a
really important step to us,” he explained.
Join the queue
As a result of the last industry crash in the US, many workers moved away to find work
elsewhere. In the past few years, automotive companies that have looked to develop
their capabilities in the area have reported a challenge in building a talented workforce.
Has Achates Power seen the same issue? Not in the slightest, says Johnson, “We have
a queue.”
He recognises that the availability of skills and resources is a challenge for many
companies, but argues: “We have a very strong differentiating factor at Achates Power.
We have a new thing, a very exciting thing and a very important offer for the industry.
Our engine offers a 20-30% efficiency improvement, and it does so without increasing
Automotive World Ltd Company registered No: 04242884 Registered Office: 1-­‐3 Washington Buildings, Stanwell Road, Penarth,CF64 2AD | Registered in England and Wales costs.” These are the fundamental factors encouraging engineers to be part of
“something that is working for a bigger cause,” he adds. “We have had no problems
finding people, and I don’t anticipate any issues staffing our centre in Detroit.”
The Detroit office has already hired six people in the last month, and Johnson notes that
it is an exciting time for the company to grow in response to the increasing customer
demand around the world.
Part of the bigger picture
As for whether this is part of a plan for future growth, Johnson simply stated: “There is
no question. I think this is just a single step in a process of growth, and I anticipate that
the company will continue to grow in response to the customer growth we are seeing.”
At the start of 2014, Achates Power had two customers, and since then it has tripled that
figure. Before the middle of 2015, Johnson expects to have ten: “It’s a significant growth,
and we have to grow the company significantly as a result. I can imagine the centre in
Michigan growing massively in coming years.”
Freddie Holmes
Automotive World Ltd Company registered No: 04242884 Registered Office: 1-­‐3 Washington Buildings, Stanwell Road, Penarth,CF64 2AD | Registered in England and Wales