Nearly a year ago the airline overhaul base at Kansas City International Airport just missed out on a mega deal that would have brought a $375 million passenger jet assembly plant to Missouri.

Although the company ultimately decided to locate elsewhere, state and local economic development officials emphatically made one point abundantly clear: The Show-Me State was serious about economic development and would go after mega-projects.

Fast forward eight months. Smith Electric Vehicles U.S. Corporation announces plans on March 27 to jolt the local economy, by assembling all-electric zero-emission commercial vehicles in Kansas City. The assembly plant is expected to create 120 jobs by 2010 with an initial investment of $10 million in the KC Metro area.

"During these difficult economic times, too many Missourians are out of work, and too many good-paying jobs are moving overseas," Gov. Jay Nixon said as he joined leaders from Smith Electric Vehicles to announce the company's decision to build the next generation of all-electric, zero-emission trucks in Kansas City. "But this announcement is great news for the people of Missouri and our economic future. With our highly skilled workforce, central location and abundant resources, Missouri is a natural choice for companies to manufacture the next generation of high-tech, energy efficient vehicles. As production of these cutting-edge vehicle lines ramps up, I will continue to fight to ensure that the Show-Me State becomes a hub for the production of next-generation automobiles. By working together, we will make Missouri the global leader in producing next-generation vehicles, create high-tech jobs for our workers and transform our economy for the 21st century."

A linchpin in the decision to locate this new production facility in Missouri was the competitive incentive package offered to SEV by the Missouri Department of Economic Development. Under an agreement with DED, Smith Electric Vehicles agreed to create 120 new jobs in Kansas City that paid above the county average wage and provide health care benefits for employees; the company must create these jobs by 2010. In exchange, the department has offered the company $2.1 million in state tax incentives under Missouri's successful Quality Jobs Program. None of these credits are awarded until the company creates the new jobs and hires employees.

Production of the first zero-emission commercial trucks is scheduled to begin later this year. The company will initially focus its production on battery-electric-powered vehicles for depot-based predictable-route delivery fleets.

"We feel the greatest opportunity to have a major impact on the electric vehicle industry is through fleet operators who utilize commercial vehicles in a depot-based delivery model," said Bryan Hansel, chief executive officer SEV U.S. Corp. "As more truck fleets adopt this technology, it will drive advancements in battery technology, drive down manufacturing costs, and form the foundation of a U.S.-based supply chain that, over time, will also significantly reduce the cost of commercial electric vehicles. This will make them a natural choice for fleet managers with a depot-based delivery model."

One key reason the KCI overhaul base was selected was because of its open configuration and immediate availability. The assembly plant will occupy 80,000 square feet at the overhaul base at start-up and will scale up based on demand. SEV U.S. Corp is also leasing 8,600 square feet of office space at the Ambassador Building at KCI. The company will receive close to $3 million in job training funds and other incentives from the state of Missouri and Kansas City.

The Kansas City Area Development Council facilitated the site selection process and notes that the SEV U.S. Corp decision emphasizes the Kansas City region as a player in the evolving world of advanced energy and transportation.

"Smith Electric Vehicles' zero-emission vans and trucks are proven products that have a long history of reliability in Europe," Hansel said. "We are bringing Smith's proprietary know-how to the U.S. to integrate electric power trains, lithium ion battery packs and control systems into commercial truck chassis envelopes that meet the specific requirements of the North American fleet market."

SEV U.S. Corp's first zero-emission truck model will be the Smith Newton - the world's largest battery-electric-powered truck. It has a top speed of up to 50 mph, a range on one battery charge in excess of 100 miles and a payload of up to 16,280 lbs. SEV U.S. Corp will utilize the Enova P120 drive system for the Newton, a proven solution currently being used by Smith in Europe. The selection of Torrance, Calif., based Enova Systems, Inc.'s P120 drive system aligns with SEV U.S. Corp's core strategy to build a strong U.S.-based supply chain.