electric vehicles

'Demand' for Nissan Leaf is All Hype and Subsidies

Nissan Leaf photoReports have trickled out lately that, all of a sudden, demand is so great for the all-electric Leaf that Nissan’s production just can’t keep up.

“We’re going to be short on inventory all through the summer,” said Erik Gottfried, director of electric vehicle sales for Nissan, to Automotive News. “It will be late fall before we can produce enough to satisfy everybody.”

Then the appropriate question from taxpayers should be, “What did we pay $1.4 billion for you to do in Smyrna, Tennessee then?!?”

Shallow Analysis Deems DOE Electric Vehicle Loans a Success

Elon MuskA popular automotive Web site’s attempt to set the record straight on the degree of success and failure of the Department of Energy’s Advanced Technology Vehicles Manufacturing loan program was well-intentioned, but missed the mark on several points and overall gave the initiative far too much credit.

Jalopnik.com contributor Patrick George was pointed in the right direction when he characterized DOE’s boastful Loan Program Office as “rosy,” but more accurate descriptors would be “excessive” and “unrealistic.” It’s clear his analysis was one of an automotive enthusiast and reviewer, rather than someone who regularly watchdogs government with a skeptic’s eye and knows how bureaucrats fudge and exaggerate numbers to claim credit for their politician bosses. As NLPC has reported often, DOE – before a taxpayer-backed bank check was ever issued to an electric automaker – has made absolutely unbelievable claims about jobs, fuel savings and carbon dioxide emission reductions that were to be realized as a result of their loans.

Bottomless Subsidies Needed to Keep DOE Electric Truck Project Alive

Frito Lay Electric TruckDespite little news over the past nine months since its last-minute abandonment of an initial public offering that was supposed to raise $76 million in cash, stimulus recipient Smith Electric Vehicles is showing little evidence it can inspire demand for its commercial trucks, like its plug-in car counterparts.

Smith’s selling point for its step vans was that, unlike electric automobiles, delivery routes in urban areas did not require a long range between refueling (or, recharging). Frequent stops and short distances alleviated the “range anxiety” that accompanies cars like the Nissan Leaf. Frito-Lay, Coca-Cola and Staples were cited as early adopters of the truck demonstration project, which was launched with the help of $32 million in taxpayer funds.

Details Revealed of Fisker's Waste and Mismanagement

Fisker logoAs NLPC has covered Fisker Automotive’s catastrophic flop over the last few years since it was granted a $529-million taxpayer-guaranteed loan from the Department of Energy, one big question that repeatedly came up was: How could a company that produced only one electric car model burn through $1.4 billion in investment so quickly?

Reuters uncovered a number of reasons in a report published earlier this week. Citing documents and some sources, mostly anonymous, the news syndicate painted a disturbing picture of mismanagement, incompetence, disinformation, and squander. While businesses stumble and go out of business every day, Fisker’s case illustrates why government bureaucrats are only accidental successes as investors of public money at best, but often are horrific decision makers at worst.

A123 and Fisker Fire at Each Other as Taxpayers Run for Cover

A123 logoFisker logoAs if taxpayers didn’t already have to stomach enough corruption, incompetence and dysfunction in the government's promotion of "green" energy, two past exemplars failure have returned to discharge blame at each other.

Fisker Automotive and A123 Systems are the costly malfunctions that zap you over and over again.

The latest, from a FoxBusiness.com report, reveals that sparks flew between the two as both of the Department of Energy-financed companies plummeted in their production, public profiles and value. According to an anonymous source the network says was “familiar with the situation,” when Fisker announced last fall it would cease production, the manufacturer of the $102,000 plug-in Karma blamed the bankruptcy of its battery manufacturer – A123 – for its downfall. The last of Fisker’s only model was produced in July last year.

Obama's Electric Vehicle Loans Program is a Failure

Fisker logoMark it down: the report this month about the shutdown of Vehicle Production Group – beneficiary of a $50-million stimulus loan from the Department of Energy – means the Advanced Technology Vehicles Manufacturing initiative within the Loan Program Office has been a thorough failure.

All five ATVM recipients, awarded a total of $8.4 billion of taxpayer-backed financing under the Recovery Act, have earned derision to some degree. Most fit into the already much-ridiculed electric vehicles program. VPG was funded to produce wheelchair-accessible passenger vehicles that ran on compressed natural gas.

Chevy Volt Inventory Build – Time for Another Production Halt?

A recent search for new Chevy Volts on cars.com unearthed 9,254 vehicles currently at dealerships for sale. There were another 258 late-model, used Volts available. About half of those had less than 5,000 miles on them. Considering the abysmal sales rate for the self-proclaimed electric wonder-car (1,306 in April for those keeping track), the unofficial inventory numbers point to about a seven month supply of Volts available. Ideal inventory levels are considered to be in the two month range. It may be near time for General Motors to halt production, yet again, for the floundering Volt.

Hold Off on Buying That Chevy Volt; Price to Drop $10,000 in Face of Dismal Sales

Volt and AkersonGreat news for consumers who are considering buying General Motors' green wonder car, the Chevy Volt. I know how excited those environmentally conscientious Volt enthusiasts can get, but a little patience can pay off big time if potential buyers hold off for a year or so on their purchase. According to GM CEO Dan Akerson and following another dismal month of Volt sales (1,306 in April), the car that defies logic will soon be available for up to $10,000 less money. The good news extends to shareholders of GM as the next generation of the Volt will supposedly be profitable for the company. So, as we say prepare to say goodbye to the current generation of the obsolescent Volt, let's take a trip down memory lane to review how past promises for the car panned out.

EV Automaker Tesla Makes Profit— Off Taxpayers

NLPC Associate Fellow Paul Chesser was a guest last night on the Willis Report on Fox Business Network. Here's a transcript:

Administration Denies Reality at Fisker Congressional Hearing

Fisker hearingAs the Department of Energy seized the last of Fisker Automotive’s reserves in lieu of an unknown amount that it was due to repay this week, what’s left of the lame electric automaker clings to the slim hope it can survive.

While CEO Tony Posawatz and his team may need an intervention, a hearing before the House Oversight and Government Reform Committee yesterday revealed that DOE and committee Democrats (as well as those in the Obama administration) are hopelessly stuck in an alternate universe, where losing millions of taxpayer dollars is considered a good record. Republicans had called officials from the company – including founder Henrik Fisker, as well as administrators of DOE’s loan program – to explain the logic that went into granting $529 million to a fledgling, unproven car company that targets an ultra-rich clientele.

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