The parent company of an electric car battery maker that received more than $100 million in government funding from the Obama administration has filed for bankruptcy protection, the company announced Thursday.
Alex Sorokin, the CEO for lithium-ion battery manufacturer Ener1, said the company suffered when demand for the batteries dropped as fewer Americans than expected opted for electric cars.
"This was a difficult, but necessary, decision for our company," Sorokin said in a statement on its website. "We moved aggressively to reduce costs and shift focus when the marketplace did not evolve as quickly as anticipated. Our business plan was impacted when demand for lithium-ion batteries slowed due to lower-than-expected adoption for electric passenger vehicles."
EnerDel, a subsidiary of Ener1 dedicated to making batteries for electric cars, was awarded a $118 million grant from the Energy Department in 2009 as part of President Obama's economic stimulus package and green energy push. Ener1 said that the bankruptcy filing and newly announced company restructuring would allow its subsidiaries, including EnerDel, to "continue normal operation." (continue reading at ABC News)
"the company suffered when demand for the batteries dropped as fewer Americans than expected opted for electric cars."
No shit. Having had driven electrically-powered industrial vehicles, I wouldn't be caught dead driving an electric car.
Posted by: R.J. Godlewski | January 27, 2012 at 03:51 PM
'Green' - the color of class envy; the color of things which spoil.
Posted by: The Watcher | January 27, 2012 at 04:12 PM
R.J.: I would not drive one either, no way. I can tell you the affects of all this litigation is starting to show up. In a hotel you turn on the bathroom light, and guess what -- they are the new energy savers. It takes 5 minutes for them to warm up and eventually light up the room. Same way with floor lamps, desk lamps. And they cost a fortune. Can't wait for somebody to break one, especially if they have kids in the room, then call the hazmat guys to clean up
Posted by: Debbie | January 27, 2012 at 04:18 PM
And i guess the money stolen from the taxpayers won't be returned either.
Even if they survived i doubt the taxpayer would ever get their money back.
Posted by: MK | January 28, 2012 at 07:06 PM