The just-launched Chevrolet Spark EV isn't expected to be a big money maker for General Motors, and the hefty shipping costs associated with the electric minicar won't help.
The car's 560-pound battery will be produced by A123 Systems in Michigan, then shipped to Korea for assembly before the car is shipped to the United States for sale in California and Oregon.
The car's electric motor will also get a round trip to Korea after being produced by GM near Baltimore.
GM could have easily found a battery supplier in Korea. But executives said GM is willing to absorb the extra shipping costs in exchange for better control over the car's two most important components.
The electric motor developed by GM, for example, is the key to the car's efficiency and stellar 400 pounds-feet of torque, said Stephen Poulos, GM's global chief engineer for battery electric propulsion.
GM began making its own motors this year. "We've learned that in some cases we can do a better job than even our suppliers can do in terms of efficiency, and it's prompted us to get into the electric motor business," he said.
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