Trouble for another “green” investment?

Ener1, a company based in New York, makes lithium ion batteries for electric cars. But, it has run into financial trouble.  On Friday, it was delisted from trading on the Nasdaq.  Unfortunately, Ener1 was the recipient of over $100 million in grants from President Obama’s Stimulus Act.

In a strange twist, the” blame” for the company’s troubles goes to none other than the federal government.

U.S. fuel-economy standards taking effect for model-year 2012 vehicles [will limit] demand for batteries made by Ener1 and its competitors. The standards can be met by using a technology known as stop-start that saves gasoline while cars idle.

It was only in January, 2011,

Vice President Joe Biden used an Ener1 plant in Mount Comfort, Indiana, to showcase the administration’s goal of having 1 million electric vehicles on U.S. roads by 2015.

Speaking of which, how is that plan working out?

This year through Sept. 30, 11,094 plug-in Leafs and Chevrolet Volts had been sold, according to Autodata Corp. That was less than 1 percent of the 4.7 million cars sold during the same time period. [emphasis supplied]

And, I will guess that no one in western Connecticut or Massachusetts is in the market for an electric car at the moment either…nor will they be any time soon.

 

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SoundOffSister

The Sound Off Sister was an Assistant United States Attorney for the Southern District of Florida, and special trial attorney for the Department of Justice, Criminal Division; a partner in the Florida law firm of Shutts & Bowen, and an adjunct professor at the University of Miami, School of Law. The Sound Off Sister offers frequent commentary concerning legislation making its way through Congress, including the health reform legislation passed in early 2010.

8 Comments

  1. rickg on November 1, 2011 at 8:12 pm

    My head is about to explode!!!!!!!



  2. essneff on November 1, 2011 at 11:26 pm

    My power?returned??about 6:30 p.m. today & I hope??everyone gets it back ASAP, but your point is on the money…… forget seaching for gas or gas lines during an event like this last storm, what do you do with an all electric car? ???No one wants them as your statistics show, but we keep shoveling good money after bad, but them I guess that’s why we’re $15 trillion in debt & growing



  3. ricbee on November 1, 2011 at 11:29 pm

    “And, I will guess that no one in western Connecticut or Massachusetts is in the market for an electric car at the moment either?nor will they be any time soon.” Hahahaha,very funny.?????????? My theory says that every time government money goes into a private company,said company follows government dictates to continue to get that free money & they lose the profit motive in the process. Said motive is what produces a successful product.



  4. phil on November 2, 2011 at 8:14 am

    How about steam driven cars?? Wadda ya think, Bobo?? Let’s throw a coupla billion at that.



  5. Murphy on November 2, 2011 at 12:51 pm

    Phil have you ever ridden in a Steam power car? It’s great! All torque – all you do is open the valve more to go faster no gears needed. And if you run out of liquid fuel (Kerosene,gas, alcohol, moonshine (talk about alternative fuels!)) slide the burner out and start a wood fire. Oh yeah in 1907 hit 150 mph at Daytona.



    • Dimsdale on November 2, 2011 at 2:05 pm

      I concur.? Imagine a Doble using modern metallurgy and CAD.? The Doble (no, not Stanley) was the pinnacle of steam engine development.? http://www.youtube.com/watch?v=ql-PfwuHFoY



  6. JBS on November 2, 2011 at 5:24 pm

    Hmmm, how much did Ener1 contribute to the DNC? It would be enlightening to know just what connection this “Green” (as in, flush with our cash $$) company has with the One and the DNC.



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