Supercar firm's cash drive

Jock Freemantle says Hulme Supercars aims to sell 10 cars in its first production year. Photo / Greg Bowker

Supercars worth up to $650,000 each could be rolling off a local production line next year if the initial public offering of Auckland-based Hulme Supercars is successful.

The company is offering 7.5 million shares valued at $1 each, with a minimum investment of $1000 required.

It is a quirkier IPO than most - investors who cough up more than $3000 are offered a spin around the racetrack in the company's prototype CanAm.

The IPO prospectus warns that investing in the company is "highly speculative", with big risks involved.

Hulme Supercars managing director Jock Freemantle said if as little as $2 million was raised through the public offering, production would begin.

He said the company had received good interest so far, with individuals investing as much as $30,000.

An initial sales target of 10 cars had been set for the first year of production.

Freemantle said the company aimed to produce three models - a CanAm, Spider and F1. The unique design, performance capabilities and "wow factor" would set the cars apart from their competition, Freemantle said.

Hulme Supercars expected to export its vehicles to wealthy car enthusiasts overseas. Only a very small market existed for the car in New Zealand.

Freemantle said the project, which began in 2002, had been funded by his own savings and by investments from friends and family. Designers, engineers and mechanics had worked for shares instead of wages.

Hulme Supercars is named after New Zealand's only Formula One world champion, the late Denny Hulme.

Freemantle said it was ridiculous that taxpayers' money was funding university courses in car design when no vehicle manufacturing industry existed in New Zealand.

He said a "feasibility study" in 2002 indicated supercar production had potential in New Zealand.

Two cars had already been built. A "non-driving" show car had travelled to motoring shows around the world. A working CanAm had already reached 257km/h on New Zealand tracks.

Freemantle said New Zealand vehicle manufacturing would never be able to compete with the lower end of the market, but it could supply an elite niche. "We've got to be at the top end. We need to be selling top quality."

Despite having potential customers interested in buying the cars, no orders had been taken by the company so far.

Hulme Supercars plans to work with New Zealand universities to provide students hands-on experience in the design, testing and production of supercars.