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|Malcolm N. Bricklin|
March 9, 1939 |
Philadelphia, Pennsylvania, U.S.
|Alma mater||University of Florida|
|Known for||known for his self-named automobile company, importer of foreign cars|
Malcolm N. Bricklin (born March 9, 1939) is an American businessman, who is primarily known for manufacturing and importing cars. Bricklin co-founded Subaru of America in 1968, in order to import and sell Subaru vehicles in the United States. He sold his interest in Subaru of America during the early 1970s, and founded a new company to manufacture his own car, the Bricklin SV-1. Built in New Brunswick, Canada, the Bricklin SV-1 was sold from 1974 to 1976, with less than 3000 vehicles sold. Bankrupted by the Bircklin's failure, Bricklin re-entered the auto industry in 1982, importing and selling Fiat's X-19 and Spider convertibles under the brand name of Bertone. In 1986, he began importing the Yugo hatchback from Yugoslavia, selling more than 120 000 of the vehicles during the first three years of this venture. Selling his interest in the Yugo during the early 1990s, Bricklin has since made and marketed an electronic bicycle known as the EV Warrior. In 2004, Bricklin's company, Visionary Vehicles, made a deal to import and distribute vehicles made by the Chinese company Chery Automobile Co., but the deal later collapsed. Bricklin filed a number of lawsuits over the deal, winning a $2 million judgment against a former partner in the deal in 2013.
In the mid-1960s, after he sold his interest in the Handyman chain of hardware stores, Bricklin moved back to Philadelphia. When he was exploring establishing a network of gas stations that would rent scooters, he went to Japan to meet with the manufacturer of the Rabbit scooter, Fuji Heavy Industries, to arrange for the purchase and importation of their scooters. But Fuji was getting out of manufacturing and was concentrating on their car business.
Bricklin was able to secure an exclusive Importation Contract with Fuji Heavy Industries to import Subaru cars and trucks into the United States. He formed Subaru of America – the first and only US Independent importer to exclusively own the distribution of cars in the United States. According to the Orlando Sentinel, "he was one of the first auto industry mavericks to recognize that thrifty, inexpensive Japanese cars could be big in the United States."
The first Subarus to enter the US were:
1968-1969: Subaru 360.
1970: Subaru Star. 1000cc, FF-1 1300 Star with a 1100 cc engine and front inboard brakes. The Star had front wheel drive, the first car company to bring all its cars into the US with front wheel drive until Subaru of America added all-wheel drive to all Subarus.
Less than six months after the company formed, they became a public company and have been from 1968.
Subaru of America went on to become the only import car company that was publicly traded; it made small fortunes for its two co-founders, Malcolm Bricklin and Harvey Lamm.
Bricklin SV1 Bricklin's next venture was his own car company, General Vehicle, started with funding from the sale of his Subaru of America ownership.
The Bricklin was delivered to the customer without paint. A vacuum forming process bonded color-impregnated acrylic to each fiberglass body panel. Minor scratches would be buffed out and had its unique "safety color" molded in to the acrylic body.
The car exceeded U.S. crash protection standards. It protected occupants with a tubular steel perimeter frame and roll cage and a chassis capable of withstanding a high velocity impact without deformation.
As the SV1 was designed to include every option as standard equipment (except a cigarette lighter and ashtray, as Bricklin viewed smoking while driving as unsafe)
Manufactured for the US market, the Bricklin SV1s were produced in New Brunswick, Canada, a location chosen because the government of New Brunswick was seeking ways to address their high unemployment, which in the mid-’70s was pushing 25%.
New Brunswick Premier Richard Hatfield supported the Province’s involvement of the Bricklin venture as a way of establishing a manufacturing base that could provide steady, high paying jobs and attract interest in the Province through the publicity the car provided.
Production at the plants began in mid 1974 and continued through late 1975, employing over 1200 people in the St. John and Minto, New Brunswick plants.
The car garnered strong, mostly positive, coverage from car magazines and consumer media that Hatfield was seeking.
In Car & Driver's comparison test, a '75 Bricklin with the Ford engine proved to be nearly a match for a '75 Corvette in every performance category--and the Bricklin's power-operated gullwing doors maxed out the "coefficient of cool" metric. Car and Drive concluded that despite some build quality and ergonomic deficiencies, and a price disadvantage, the Bricklin was "a tangible threat to the Corvette."
In September 1975, after building 2,854 cars, and General Vehicles having set up over 400 US automobile dealers with 40,000 back orders, the Province refused to provide any more financial assistance and forced the company into receivership.
International Automobile Importers (IAI)
International Automobile Importers (IAI) In 1982, with Fiat leaving the U.S. market, Bricklin created International Automobile Importers (A1) to import the Italian Fiat 2000 roadster, renaming it the Pininfarina, and the Bertone X/1-9. The company was profitable. But when Cadillac made a deal with Pininfarina, IAI was told that Cadillac didn’t want a $14,000 Pininfarina being sold next to its $55,000 Allante, they gave IAI six months before they cancelled production of the cars to give us time to find an alternative import.
Yugo, Global Motors
Yugo, Global Motors Bricklin wanted to import a simple, low cost car to the U.S. market, was introduced to Zastava located in Kragujevac, Yugoslavia. Zastava had begun producing cars in 1953 under a license from Italian Fiat. In 1984, the entire Yugoslav car industry produced 236,000 cars, 58,000 of which were exported.
Bricklin, Senior advisor, Henry Kissinger, former U.S. Under-Secretary of State and Yugo Board member, Lawrence Eagleburger, and Global Motors executives met with Zastava. Bricklin agreed to import the Zastava Koral, the Yugo.
Bricklin and his engineers suggested some 600 changes in the Yugo for export to keep the Yugo competitive with other cars in its class, a 1.1-liter, 4-cylinder engine, in the U.S. Those changes included improvements in the anti-pollution system, comfort adjustments, safety devices and special carburetors for lead-free gasoline. In addition to the main Kragujevac complex, about 200 smaller Yugoslav factories produce parts for ZCZ cars.
Bricklin had his own people at the plant to monitor the effort, constantly stressing the need for high quality. A team of British quality experts sent a cadre to Kragujevac to study the factory and recommend improvements.
The first shipment of the Yugos sailed from the Yugoslav southern Adriatic port of Bar for Baltimore in July 1985.
At first, five models of Yugo were sold in the United States for the 1987 model year: the basic entry-level $3,990 GV (for "Great Value"), the GVC with a glass sunroof, the nearly identical GVL and GVS with minor trim and upholstery upgrades, and the race-inspired GVX with the 1300 cc engine, five-speed manual transmission and standard equipment including a plush interior, ground-effects package, alloy wheels, rally lights, and a centre high mount stop lamp. The Cabrio convertible was introduced in 1988.
Sale of Company Malcolm Bricklin sold his interest in Yugo in 1988 for $20 million.
1992 United Nations Sanctions and US Bombing May 30, 1992 United Nations sanctions were imposed, severing Yugoslavia from world trade.
The effects of the United Nations sanctions on Yugoslavia forced Zastava to withdraw the car from every export market. After embargoes stifled production, the coup de grâce was NATO's 1999 bombing of the company's automotive division, instead of Zastava's arms manufacturing division.
Yugo Critics and Defenders The Yugo was subjected to derision by critics who pointed to its use of old-generation Fiat technology and to alleged issues with build quality and reliability. The Yugo was voted Car Talk 's worst car of the millennium.
Defenders of the vehicle have counter-argued that the Yugo's reputation suffered due to an issue that also appeared with initially inexpensive cars as the Chevrolet Chevette, Rambler, Crosley, and others — dealers were finding that too many owners were considering inexpensive cars as "disposable", and were failing to perform basic maintenance such as oil changes. Some Yugo owners have reported that regular oil changes and appropriate maintenance allow the cars to remain dependable and trouble-free.
Popular Mechanics surveyed 1,000 Yugo buyers and published the report in June 1987. In terms of quality and workmanship 78% said the workmanship was good to excellent, with 25% giving it an unqualified excellent. Only 5% said poor. 42.4% would buy a Yugo again (and 36% answered with "maybe").
In the 1990s, Bricklin turned his attention to the idea of producing environmentally friendly vehicles. He studied battery technology and went on to form an electric vehicle company.
Bricklin thought electric vehicles were the wave of the future, a notion that appeared to be ahead of its time.
After trying to get electric cars off the ground for a time, Bricklin formed a partnership with Dr. Malcolm Currie. Currie is the former Chairman and CEO of Hughes Aircraft, GM Delco and former Undersecretary of Defense for Research and Engineering. In Bricklin’s and Currie’s view, the electric bike was a promising first step to winning people over to the idea of electric cars.
They formed Electric Bicycle Company and developed an infrastructure through car dealers to sell the bikes.
After three years in development, in 1996, the EV Warrior electric bicycle was born.
The rider could pedal unaided by the motors, or could activate them with a thumb switch on the handle bar. That smoothly, quietly and quickly takes the bike to 20 mph if the rider pedals, or to 15 mph with no pedaling before it needed a charge. Among the special features were high-tech turn signals and brake lights on the two rear-view mirrors.
It came in seven colors, resembling s a mountain bike with a steel box behind the seat that straddles the rear wheel. Inside the box are two 24-volt electric motors powered by two rechargeable 12-volt lead-acid batteries. The suggested retail price was $1,400 to $1,900, depending on options, the "EV Warrior".
Currie founded Currie Cruisers and co-founded Real Spirit USA, to further develop the electric bicycles.
The search for the global car
Beginning in 2002, Bricklin began his search for a manufacturing partner that could help him create another value brand in the US. He briefly considered the Yugo again, but the factories were in disrepair and he didn't think he could create a quality vehicle there.
Bricklin then embarked on a three-year journey around the world to find a manufacturing partner. He looked in the United Kingdom, India, Poland and after seeing their factory and meeting the executive staff, he decided to enter into an Importation Agreement with Chery Automobile Company, which is located in the Anhui Province of China and owned by the Provincial Anhui Government.
Chery Automobile Company
Visionary Vehicles [now named VCars, LLC] entered into a joint venture in December 2004 to import 5 different models of cars into North America. Bricklin staffed an Engineering office in Detroit to direct the changes required to meet and exceed safety the homologation requirements in the United States.
Bricklin hired consultants, advisors and employees with extensive financial and automotive experience who were well respected in the industry.
These included: Allen and company; Atlantic Pacific Capital; Ambassador van den Heuvel, former US Ambassador to the United Nations; Maurice Strong, former United Nations undersecretary; Ron Harbour, of Harbour Consultants, international automobile factory evaluators; Marianne McInerney, former President of the International Automotive Dealers Association; and Per Arnberg, President of Fram Shipowning, LTD, an international shipping company.
He also retained New York Marketing and Public Relations firms that generated hundreds of thousands of dollars in world-wide media exposure that put Chery on the international map.
After spending two years and $26 million in an effort to bring Chery’s manufacturing capabilities up to international standards and to create world-wide industry, dealer and consumer awareness of Chery, Visionary Vehicles discovered that Chery was using Visionary Vehicle’s engineering staff to work on a project that involved Chrysler Corporation [which ultimately failed to materialize].
Shortly thereafter, Chery entered into an agreement with Quantum LLC, a subsidiary company of the Israel Corporation, brought in to help fund Visionary Vehicle’s participation the joint venture with Chery. The agreement between Chery and Israel Corporation was done without Visionary Vehicle’s knowledge or approval, and excluded Visionary Vehicles.
Bricklin told Reuters, "We found out what was really going on behind our back at the end of '06 and we have been trying to get justice ever since. Dennis Gore, former Visionary Cars executive, used proprietary information to help Chery launch a joint venture with Quantum LLC.
Chery Automobile, Dennis Gore and Israel Corporation Law Suits
Visionary Vehicles filed suits to recoup losses and collect damages from the failed deal.
Chery Automobile Law Suit
Dennis Gore Law Suit- $2 Million Verdict in Case of Corporate Espionage.
Federal Jury Finds Gore Committed Fraud and Other Offenses and Awards V-Cars 2 Million Dollars in Damages.
Having discovered Dennis Gore’s role in undermining the joint venture with Chery, Visionary Vehicles also sued Mr. Gore in Federal Court, in Detroit, Michigan.
An eight-person Federal jury took less than one day to return a verdict in favor of V Cars, LLC. The jury found that KCA Engineering LLC, controlled by Dennis Gore, committed fraud and other offenses and awarded $2 million in damages to Visionary Vehicles.
V Cars proved in the lawsuit that KCA Engineering, LLC was a recipient of a lucrative contract from Chery Automobile Co., Ltd. as a payoff for Dennis Gore’s covert help to the top management at Chery to obtain $200,000,000 financing for a joint venture to export cars to North America through Mr. Bricklin’s company.
Unknown to V Cars’ management, Mr. Gore and Chery’s executives, including its Chief Executive Officer, Yin Tongyao, spent months discussing sensitive company information in a private email channel set up by Mr. Gore at the request of Chery.
When [the company] discovered the communications, Mr. Gore relocated to Shanghai, China where KCA continued to be paid under a series of contracts between KCA Engineering, LLC, and third parties.
Israel Corporation Law Suits
A lawsuit against a Norwegian company working with Israel Corporation was settled.
A $30 million lawsuit suit against Israel Corporation is scheduled for trial in Israel
The documentary film entitled "The Entrepreneur" was filmed and directed by Bricklin's son, Jonathan Bricklin. The film documents his father's business meetings around the world as he tried to secure a contract with a manufacturing plan to offer a luxury sedan at a lower price than other automobiles offered in the United States.
- "Floridians Leave Stamp On Auto History". tribunedigital-orlandosentinel.
- "Auto entrepreneur Bricklin wins $2 million settlement for fraud". Reuters.
- Todd Burlage. "Malcolm Bricklin". The Columbus Dispatch.
- "A Small Start for Something Big - 1969 Subaru 360". www.hemmings.com. Retrieved 2015-10-03.
- http://www.hemmings.com/hsx/stories/2009/05/01/hmn_feature14.html Bricklin was planning to use the Rabbit, a scooter built by Fuji Heavy Industries in Japan. The moped craze was dawning, and Fuji wanted to get out of scooters but into cars. Realizing that Fuji's tiny Subaru 360 micro car didn't have to be federalized because it only weighed 960 pounds, Bricklin secured a contract to bring them to the United States.
- "Auto Entrepreneur;". Inc.com.
- Orlando Sentinel http://articles.orlandosentinel.com/1996-06-16/features/9606071016_1_bricklin-sv-1-malcolm-bricklin-subaru-of-america
- "Subaru history in the USA: the models, the changes". cars101.com.
- "Car Lust". carlustblog.com.
- http://www.carlustblog.com/2011/08/bricklin-sv-1.html Cars of Futures Past- Bricklin SV1 Kurt Ernst December 26, 2014 http://blog.hemmings.com/index.php/2013/12/26/cars-of-futures-past-bricklin-sv1/
- "Chevrolet Corvette Stingray vs. Bricklin SV-1". caranddriver.com.
- "Chevrolet Corvette Stingray vs. Bricklin SV-1 - Comparison Tests". Retrieved 2015-10-03.
- "Cars of Futures Past – Bricklin SV1". Hemmings Motor News.
- "Fiat is out... Pininfarina is in". PininfarinaAzzurra.com.
- Car and Driver July 2009 Steven Cole Smith http://www.caranddriver.com/features/malcolm-bricklin-what-id-do-differently-feature
- Zastava Koral
- "The Yugo: Small Car, Small Price, Big Goals". tribunedigital-chicagotribune.
- "Malcolm Bricklin: What I'd do Differently". caranddriver.com.
- "Popular Mechanics". google.com.
- "What's the Worst Car of the Millennium?". Car Talk.
- "Electric Bicycles: Their Time Never Came". Brad Rourke's Blog.
- "USC - Viterbi School of Engineering - Malcolm Currie". usc.edu.
- "Bricklin Back in the Race, Now Peddling an Electric Bicycle". latimes.
- http://articles.latimes.com/1996-07-12/business/fi-23293_1_electric-bicycle http://wardsauto.com/news-amp-analysis/bricklin-returns-us-electric-bicycle
- "Real Spirit USA - An Innovative Products Group". realspiritusa.com.
- "Chery International". cheryinternational.com.
- "Amazon.com: The Entrepreneur: Malcolm Bricklin, Paul Lambert, Tony Ciminera, Jonathan Bricklin". amazon.com.
- Visionary Vehicles LLC (8 February 2005). "Malcolm Bricklin Hires Asian Import Expert Dennis Gore for Visionary Vehicles Team". prnewswire.com.
- Visionary Vehicles (15 May 2006). "Former AIADA President Marianne McInerney Joins Visionary Vehicles". prnewswire.com.
- "Bricklin gets a Bankroll: Visionary Vehicles founder gets $200 million to help bring Chery to the U.S.". Autoweek.
- Allen & Company
- Atlantic-Pacific Capital
- William vanden Heuvel
- "Welcome to the Frontpage". mauricestrong.net.
- "Ron Harbour". oliverwyman.com.
- http://autoweek.com/article/car-news/bricklin-gets-bankroll-visionary-vehicles-founder-gets-200-million-help-bring-chery - sthash.pNlh0JhD.dpuf
- "Chery coming to USA? - China Car Forums". chinacarforums.com.
- "Malcolm Bricklin Sues Chrysler's Chinese Partner, Chery Automobile". AutoObserver Malcolm Bricklin Sues Chrysler's Chinese Partner, Chery Automobile.
- V Cars LLC v. Chery Automobile Co et al., U.S. District Court, Eastern District of Michigan, Southern Division, No. 08-cv-13113
- "Bricklin's V Cars wins $2 million settlement in fraud suit against former employee". Automotive News.
- "$2M Verdict Reached in Case of Corporate Espionage". dbusiness.com.
- V Cars, LLC v. KCA Engineering, LLC, United States District Court for The Eastern District of Michigan, Case No. 2:11-cv-12805.
- BusinessWeek Bricklin is Back with a Plug-in
- Malcolm Bricklin Subaru, Bricklin, Fiat, Yugo cars
- Man behind the Yugo to lead new import wave in 2007, a January 2005 cover story from the Detroit News
- Bricklin Chery call it quits, from The Car Connection
- Malcolm Bricklin on electric hybrid plans, Reuters interview from January 2007