Smart solution to a pricey problem. St. John's native cashing in on green Europeans
By Paul Banks
St. John's native Rory MacParland was tired of getting hit in the wallet, so he decided to do something about it.
His solution? To acquire two companies that do millions of dollars in sales each year.
MacParland, a 30-year-old entrepreneur, has lived in London, England for years, and was getting annoyed with that city's congestion charge - a fee charged to motorists who drive in a high-traffic zone of the city in an effort to cut down on traffic congestion and encourage carpooling and the use of public transit.
At the time, the congestion charge was equivalent to $20 a day. It's now about $15.
In 2004, MacParland developed a conversion kit for the already fuel-efficient, and diminutive Smart Car, using an alternative fuel product supplied by the manufacturing company Prins, based in Germany.
The SmartLPG uses liquefied petroleum gas - a blend of propane and butane - making it exempt from London's emission levy.
Last year, his company - which markets the SmartLPG after receiving the vehicles from manufacturer DaimlerChrysler - had the equivalent of $4 million in sales.
It was so successful, MacParland decided to buy the supplier, Prins, which makes engine systems for various makes of car and service vehicles, including police cars.
"We had an environmental car that worked, and people were buying it as opposed to these potential prototype cars the big car manufacturers were doing," MacParland explained.
"We were there at the right time with a great product. Our service is impeccable and our clients love our products. And our product actually works."
He says LPG costs about half as much as gasoline, and with the congestion charge exemption, his version of the Smart Car saves drivers about $5,000 a year.
MacParland doesn't consider himself a full-fledged environmentalist, though he did work on compost gardens in Bowring Park for St. John's Clean and Beautiful when he was 14. And he had no prior experience in the auto industry.
"It was more a culture of ideas and innovation that led me to (SmartLPG)," he said.
"There was (the) problem of the congestion charge, and I wanted to resolve that issue. The way to make that happen was with an environmental vehicle. I could sit back and say, 'I'm an environmentalist.' But the fact of the matter is environmentalists make poor businesspeople.
"I was lucky to combine an interest in sustainable things with a proper business."
MacParland wouldn't get into detail about the success of his venture, because the Prins acquisition is still in the final stages, he said the supplier has had about $20.5 million in annual sales in recent years.
Meanwhile, his SmartLPG is getting attention around Europe - in England, particularly - with a major billboard advertising campaign, with catchy slogans like, "Do it for the future of all mankind. Or just your wallet," and "Save the planet. Make a killing."
"That's the kind of business we are," MacParland remarked.
"Let's make it fun and interesting. We're having a lot of fun and don't take ourselves too seriously, and it trickles down to our customers."
LPG fuel is available at about 10 per cent of stations in the U.K.
MacParland isn't sure when the fuel might become popular in Canada, though [the company] has sold some kits in Canada.
"The price of fuel is something you can actually take control of," he said.
"If you fill up a (Dodge) Ram 350 (pickup truck), it's going to cost you over $150, but on LPG it will cost you half that and you won't lose any performance.
"You don't have to be a tree hugger to do something environmental."
The Telegram (St. John's)
Provincial, Monday, February 11, 2008, p. A3
