Iacocca, Stempel in Tandem Effort to Introduce Line of Electric Bikes

Two former giants of the auto industry, who helped bring millions of gas-guzzling vehicles to market, are teaming up to promote electric bicycles, scooters and souped-up golf carts.

Lee Iacocca, former chairman of Chrysler Corp., and Robert Stempel, former chairman of General Motors Corp., said Tuesday that they are joining forces to introduce a line of small, lightweight electric vehicles.

“This is the changing of the guard,” said the 73-year-old Iacocca. “In the new millennium, for young people it’s going to be an electric world.”

Iacocca is chairman of L.A.-based EV Global Motors, which plans to introduce electric bicycles this summer and has an ambitious goal of selling 50,000 battery-powered two-wheelers this year. California and Florida are the chief target markets.

Stempel, 64, is chairman of Energy Conversion Devices, a Troy, Mich., company that makes Ovonic nickel-metal-hydride batteries, which can double the range of most current electric vehicles.

Under the business agreement signed Tuesday, the two companies will exchange stock valued at several million dollars and hold small minority stakes in each other’s companies. Iacocca and Stempel will also become advisors to each other’s firms.

Iacocca predicted that electric-powered bikes can capture about 10% of the U.S. bicycle market within a few years.