Airport Wiki-Wiki
trolley maker runs into
loan troubles

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Associated Press

The Indiana company that signed a $2.4 million contract last month to build electric/ propane-powered Wiki-Wiki trolley buses for Honolulu Airport has government loan problems in its hometown.

It plans to use proceeds from the Hawaii contract to meet loan payment deadlines, a company official said.

Electric Vehicle International, through its local representative, GEM of Hawaii, was awarded the contract for four of the buses and six tractor-trailer units to be built in Anderson, Ind., and at a manufacturing plant in Mexico.

The first of the new air-conditioned buses to replace the three aging diesel-powered Wiki-Wiki buses are expected to be delivered by the end of the year.

Airports Administrator Jerry Matsuda said yesterday he was unaware of the loan problems and hopes they don't interfere with the Hawaii contract.

The company gets a partial payment up front, but the rest is paid upon delivery of the new vehicles, Matsuda said.

The company owes the city of Anderson $200,000 for a 3-year-old start-up loan from the city and $300,000 for payments the city's Community Development Department made on a $1 million loan to Electric Vehicle International by the U.S. Housing and Urban Development Administration.

The company faces an Aug. 15 deadline to begin repaying the overdue loans.

President Bill Hardacre said the company hopes the city will renegotiate the loans and set up a quarterly payment schedule.

The company will make the $100,000 payment, plus interest, to the federal government next Aug. 1.

The company also is awaiting word on a $5.4 million contract to deliver 170 electric-powered delivery vans to a Mexican pharmaceutical company, Hardacre said.

He told the Herald Bulletin newspaper in Anderson that the vehicles have to be delivered to Honolulu Airport within the next 270 days.

Hardacre said the chassis and propulsion units will be produced in Anderson and then shipped to a Mexican bus company for the body work.

"Sixty percent of the chassis and propulsion work will be done in Anderson," he said. "We plan on starting the project in September."