Brit Investment Company Gives Up on US Electric Truck Maker

Frito Lay Electric TruckA British investment company has thrown in the towel on an electric delivery truck manufacturer that it once wholly owned, saw fail, then spun off in the United States at the height of President Obama’s green energy stimulus subsidy mania.

U.K.-based Tanfield Group announced at the end of June that it wrote down the value of the last 5.76 percent ownership stake it held in Smith Electric Vehicles, which received $32 million in U.S. taxpayer funds as a formerly British entity that reconstituted and relocated in Kansas City in 2009. The move by Tanfield followed Smith’s legal action filed against business partner FDG Electric Vehicles, in which it alleged “fraudulent misstatements” against the Chinese company that had enticed it into an agreement.

“The [Tanfield] board of directors has carried out a review of the investment in Smith resulting in a decision to impair the investment value to nil,” the …

Chinese Swoop in on Taxpayer-Subsidized Electric Truck Maker

Smith Electric logoThe painful and fruitless existence of Smith Electric Vehicles, waster of $32 million in U.S. taxpayer funds, has been extended after yet another near bankruptcy.

The Kansas City electric delivery truck manufacturer, whose actual business negotiates in government grants, tax breaks and other subsidies – rather than a product anyone actually wants to pay for – had announced at the end of September, via its British investor Tanfield Group, that it needed to raise $4.5 million by October 2nd and $10 million by the end of the month. Without the cash infusion, Tanfield said, “the company is likely to be forced to seek protection under US bankruptcy laws or close down its operations.”

Yesterday Tanfield notified its own investors that Smith Electric had “raised a loan” of $2.9 million thanks to help from – as you might guess – a Chinese manufacturer, FDG Electric Vehicles Limited

Electric Truck Company Looks Like Next Stimulus-Funded Bankruptcy

Frito Lay Electric TruckAn electric truck manufacturer that was awarded $32 million from President Obama’s stimulus program has informed one of its investors that it is on the verge of bankruptcy, if it did not raise $4.5 million by Friday and $10 million by the end of October.

The troubled saga of Smith Electric Vehicles should be particularly sickening for taxpayers because it sprouted out of a similar failed company, of the same name, in Great Britain. Smith, as part of the U.K.-based Tanfield Group, stumbled out of Europe and re-established itself in Kansas City – opportunistically at the time that President Obama was rolling out his plans to “stimulate” the “green” energy sector in early 2009.

More on that momentarily, after a look at Smith’s current desperation. According to reports from investment Web sites in England, Tanfield – which currently holds a 5.8 percent ownership stake – was notified last week …

Energy Dept. Revives Stimulus Loans as Another Electric Vehicle Co. Stalls

Frito Lay Electric TruckAs Energy Secretary Ernest Moniz announced last week a renewed push to provide $16 billion in taxpayer-backed loans for “clean” technology vehicles, more bad news emerged from another stimulus-funded electric vehicle company over the weekend.

Smith Electric Vehicles, the truck company that was supposed to “make it” because electrification made so much sense for short, urban delivery routes, halted production at the end of 2013. A quarterly report at Recovery.gov attributed the stoppage to “the company’s tight cash flow situation.”

While not a beneficiary of the Advanced Technology Vehicles Manufacturing Loan Program that Moniz wants to revive, Smith Electric is another reason why subsidies of any type for this floundering pseudo-industry – loans, grants, tax breaks, etc. – are enormous wastes. In light of the hundreds of millions of dollars that other companies like Fisker Automotive, Ecotality and A123 Systems received, Smith’s $32 million in grants is comparatively …

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.

Alas, it’s not helping. Once holding the lofty expectations of the IPO last September, the company is now quietly noting it raised $8.6 million in “bridge” funding. CEO Bryan Hansel said that the …

2012: The Year of Taxpayer ‘Green’ Waste

Obama InvescoThe past year was a dismal one for the passé idea that government would use taxpayer dollars responsibly, and that was nowhere more evident than with President Obama’s initiatives to promote “clean” energy technology companies and projects with so-called “stimulus” funds and other public money. NLPC reported extensively on some of the most egregious examples.

Solar Favors Don’t Stop Fizzle

Solyndra went bankrupt in 2011, and the reverberations over $535 million in lost taxpayer money were felt throughout 2012. Money still flowed out from the Department of Energy and its stimulus stash, but Congressional Republicans’ scrutiny of big projects – especially in the Loan Program Office –paralyzed some new projects.

The year began with BP, which not long ago downplayed fossil fuels in favor of a “Beyond Petroleum” motto, exiting the solar business despite having received a $7.5 million grant from the U.S. government …

Taxpayer-Funded EV Company Abandons IPO It Thought Would Save It

Frito Lay Electric TruckThe failing British electric vehicle company that pretended to become an American one in order to save its U.K. investors has scrapped its planned initial public offering that it hoped would save it in Kansas City.

Smith Electric Vehicles, recipient of $32 million in taxpayer stimulus, had reportedly fantasized it would raise $76 million (down from $125 million) via an IPO by selling roughly 4 ½ million shares at $16 to $18 each. CEO Bryan Hansel bowed to reality Thursday night and rescinded those plans.

“We received significant interest from potential investors,” he said in a statement. “However, we were unable to complete a transaction at a valuation or size that would be in the best interests of our company and its existing shareholders.”

Hansel said that the company will pursue “private financing opportunities” instead, which is also likely a fantasy – at least one that will enable …

Taxpayer-Funded Electric Vehicle Maker Needs IPO Cash to Survive

Frito Lay Electric TruckSmith Electric Vehicles, which is using $32 million in taxpayer stimulus to practically give away its delivery trucks to corporations like Frito-Lay (owned by PepsiCo), Coca-Cola and Staples, is hemorrhaging money anyway and now is looking to an initial public offering to pay off debts and try to survive.

The Kansas City Star reported last week that Smith cut its production expectations and warning it is running low on cash, citing filings with the Securities and Exchange Commission. The company announced nearly a year ago it would seek $125 million through an IPO, but now says it hopes to raise about $76 million at a stock price of $16 to $18, according to a Kansas City Business Journal report.

Good luck with that. The Journal said the revenues generated “would help pay off a $16.5 million bridge loan, $1.3 million related to a legal settlement involving …

Infinite Taxpayer Money Needed for Electric Truck Company’s Survival

Frito Lay Electric TruckDespite a new report out of the United Kingdom that says the future of the business is bleak without government subsidies, a three-year-old unprofitable electric truck company that received $32 million in U.S. taxpayer stimulus plans to raise more money via an initial public offering.

Kansas City-based Smith Electric Vehicles was launched in January 2009, and despite its lack of track record and the inexperience of its leadership, the Department of Energy awarded the company $10 million in August 2009, and an additional $22 million in March 2010, for an electric truck demonstration program. The company was little more than a spinoff of a failed U.K. operation with the same name, owned by a troubled parent company called The Tanfield Group. In July 2008 – largely because of Smith-UK’s shortcomings – Tanfield’s stock price “collapsed” (scroll down at link) and was harming other holdings of its founder, …

Dismal Outlook for EVs on Both Sides of the Atlantic

Nissan Leaf photoFor electric vehicle enthusiasts with the “if you build it, they will come” mentality, who endorse endless taxpayer subsidies for plug-in automobiles and infrastructure to charge them, there’s bad news this week.

The Daily Mail reported that sales of electric cars in the United Kingdom have fallen so sharply that there are now more charging stations than there are vehicles. If you thought the flaccid U.S. sales of the Chevy Volt (7,671 units) and Nissan Leaf (9,674 units) were a letdown – despite significant government funding for research and development, batteries, charging systems, and a $7,500 tax credit for buyers – the signs from Europe won’t lift spirits.

“Just 2,149 electric cars have been sold since 2006, despite a government scheme last year offering customers up to £5,000 (about $7,700 U.S. dollars) towards the cost of a vehicle,” the U.K. newspaper reported. “The Department for Transport says that around 2,500 …