Ener1

Government Stimulus Can't Overcome 100 Years of EV Battery Shortcomings

Nissan logoIt’s the battery.

Contrary to the excuses that Nissan has supplied about the loss of capacity for owners of the all-electric Leaf in the desert Southwest – especially super-hot Phoenix – a tightly-controlled test of a dozen of the vehicles showed that all of them experienced reduced range. Even a month-old Leaf could not recharge to 100 percent.

Taxpayer-Funded A123 May Get a Chinese Bailout

A123 logoMonths ago, after they issued their most recent dismal quarterly earnings report, A123 Systems officials announced they would explore options in order to save the company, leaving the impression they were looking for a buyer. 

On Tuesday the heavily subsidized electric vehicle battery manufacturer released its latest financial bad news, but also disclosed that it also had a potential buyer – from China. According to media reports, just as A123 reported another $82.9 million in second-quarter losses, good news also magically materialized as Wanxiang Group Corp. was announced as a new investor. A123 had reported recently to the Securities and Exchange Commission that its ability to continue as a viable company was “a going concern.”

Taxpayer-Backed Yet Cash-Poor A123 Stock Hits All-Time Low

A123 logoA week and a half ago cash-poor A123 Systems, recipient of $279 million-plus in federal money and millions more from the State of Michigan, announced it would access $39 million via a stock sale to institutional investors and the release of other cash after meeting requirements related to its existing reserves.

It has been downhill ever since – all the way down to its all-time low of 75 cents per share price Tuesday (and 69 cents Thursday morning). It may be too much for even these masters of the press release cycle to overcome by creating good news out of thin air.

Over-Stimulus, EV Indifference a Lethal Mix for Battery Companies

Volt recharging photoThe Obama Administration has over-stimulated the electric vehicle battery market, as companies inspired by the flow of federal stimulus support don’t have enough customers for their products.

The government promise of a coming electric car (and truck) revolution, thanks to moves such as President George W. Bush’s signature to approve a $7,500-per-electric-vehicle tax credit and Congress’s passage of the Recovery Act, instigated a buildup of capacity and inventory for batteries. Now putrid EV sales – including the newly introduced Ford Focus electric – have put their battery makers in peril, according to the Detroit Free Press.

10 Reasons Why Fisker May Be Worse Than Solyndra

Chu photo

This story has been updated below.

Automotive and green technology advocacy Web sites are abuzz with a story about a former employee of Fisker Automotive who claims the company released its $102,000-plus Karma electric sport sedan prematurely, in order to meet targets set forth by the Department of Energy so Fisker could access funds from a $529 million loan award.

Taxpayer-Funded Abound Solar Had Previous Shutdown; Lobbyist Promoted Failed Projects

Abound logo

A Department of Energy-funded solar company that laid off 280 workers last week quietly imposed a mandatory, temporary cessation of its operations during the holidays, and warned employees to “not let the rumor mill create false purposes for this shut down.” And in another sign of potential financial troubles, a company document that is supposed to guide “the next great solar company” advises leadership to “stretch payables” to help attain its goals.

Can Taxpayer-Subsidized Battery Maker A123 Survive?

A123 logoThe taxpayer-funded ($279 million) battery supplier that gave big raises and parachutes to its executives shortly after it cut “Green jobs” at its Michigan factories, reported last week it would suffer big losses again for 2011.

A123 Systems, whose fortunes were entwined with those of electric vehicle startup manufacturer Fisker Automotive, also announced it would look to China and India in order to survive.

After Layoffs, Execs Get Big Raises at Taxpayer-Funded A123

A123 logoA taxpayer-funded electric vehicle battery company, that is considered in great danger due to its dependency on troubled EV company Fisker Automotive, has awarded its top executives big salary increases despite a steep downward trajectory in its stock price.

Massachusetts-based A123 Systems -- which received $279.1 million in stimulus money from the Department of Energy, and up to $135 million in incentives from the State of Michigan -- boosted the base salaries of two vice presidents and its chief financial officer on February 8.

Many Unanswered Questions Surround Fisker Layoffs

A123 logo

 

This post has been updated below.

Among the objections about taxpayer subsidies for the high-profile Chevy Volt, manufactured by Government Motors, is that the many grants, loans and tax breaks that lowered the sticker price on the electric hybrid car facilitated its (paltry) sales for the benefit of wealthier individuals who were purchasing it – those with average annual salaries of $170,000. So can you imagine how happy the affluent customers (like Leonardo DiCaprio) of the heavily subsidized, $102,000 electric Fisker Karma are, to be able to purchase their gimmicky sports sedan at a discount, with a $7,500 tax credit to boot?

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