Print 76 comment(s) - last by Boingo Twang.. on Apr 2 at 10:03 AM

The bankruptcy filing caused a halt in Ford Transit Connect production

While the electric vehicle (EV) industry seems to be moving forward in many ways, it has also experienced some setbacks over the last year. Unfortunately, many of these setbacks involve EV batteries, and now, Ford is in the same boat.

Azure Dynamics, a British Columbia-based EV firm, has filed for bankruptcy in the United States. Azure Dynamics is responsible for installing the battery electric powertrain in Ford's Transit Connect.

Azure Dynamics filed for bankruptcy on Monday, and was forced to lay off 120 employees worldwide. Layoffs occurred in Boston, Michigan, Canada and the United Kingdom.

In addition to layoffs, Azure Dynamics said it will no longer proceed with a planned stock offering because the company just doesn't have the liquidity to move forward with an appeal of a ruling that opposed its planned stock offering.

"We wish to convey to the company's stakeholders our terrible sadness at this outcome," said Azure Dynamics in a statement.

Azure Dynamics received a four-year contract from the Government Services Administration for about $112 million. The contract gave the U.S. military and government agencies the ability to order the Transit Connect EV, and Azure said it had about 2,200 orders. In addition, Azure was attracted to Michigan because of the state tax credit, which is over $1.7 million over a seven-year period, and an 11-year local tax abatement approved by the city of Oak Park valued at $55,400.

On Ford's side of the situation, the bankruptcy means having to stop production of the Transit Connect EV, and it's currently unclear if this situation will be temporary or permanent.

So far, Ford has produced 500 EV Ford Transit Connect vehicles since 2010, when it began its partnership with Azure. Despite Azure's recent news of bankruptcy, Ford is standing behind the company.

"Our priority is to ensure that Azure's Transit Connect Electric customers continue to have support throughout their ownership experience," said Wes Sherwood, Ford spokesman.

Azure definitely isn't the only EV battery company (or alternative energy company) to file for bankruptcy within the past year. In January, EV battery maker Ener1 filed for bankruptcy after its subsidiary, EnerDel, received a $118 million Department of Energy grant in August 2009. Other EV battery issues that have occurred recently include General Motors' Chevrolet Volt, which experienced a series of battery fires last year, and problems with Fisker Automotive's Karma plug-in hybrid batteries, which will be replaced entirely by A123 Systems Inc. for $55 million.

Other failed alternative energy companies that have filed for bankruptcy include solar panel company Solyndra, which received a $535 million loan guarantee from the government despite warnings of Solyndra's viability, and Beacon Power, which received nearly $43 million from the government in August 2010 and filed for bankruptcy in November 2011.

Source: The Detroit News

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: The Green Bubble
By Amedean on 3/28/2012 1:25:07 PM , Rating: 0
Over a trillion dollars per year in the trade deficit is from oil. What are you talking about?

RE: The Green Bubble
By Reclaimer77 on 3/28/2012 4:02:18 PM , Rating: 2
A trade deficit is quite a different thing than saying "industry X received trillions in handouts". Try reading before making comments.

Unless you are calling a trade deficit a handout and blaming a corporation for it existing. In which case we can stop this debate now and label you a troll.

RE: The Green Bubble
By Amedean on 3/28/12, Rating: -1
RE: The Green Bubble
By Reclaimer77 on 3/28/2012 4:44:20 PM , Rating: 2
Right off the bat you show yourself as a troll with the whole "war for oil" bullcrap. Are you serious with this?

Tell that to all the Iraq war vets and tax payers financing with blood and money costly wars overseas.

Wow. Not even Liberals are saying we went to war for oil anymore. You need to update your arguments.

You sound like a radical idiot who will not listen to any reason, however, this is your one chance to prove me wrong.

Try looking into the CBO and links that end with ".gov" instead.

Oh my, what do we have here! Apparently the CBO is saying that renewable energy is far more heavily subsidized by tax carveouts than any other energy sector, including fossil fuels. The chart does not, however, take into account the level of those subsidies in proportion to the amount of energy that each sector creates. By that measure, renewables’ federal subsidies are even more lopsided. Wind energy companies, for instance, get about 1000 times the subsidies that oil companies do, per kilowatt-hour of energy produced.

RE: The Green Bubble
By Amedean on 3/28/12, Rating: 0
RE: The Green Bubble
By Amedean on 3/28/12, Rating: 0
RE: The Green Bubble
By Reclaimer77 on 3/28/2012 7:39:41 PM , Rating: 1
I respect your service and thank you for it. And, not that it should matter in an argument, I was unable to qualify for military service due to a knee disability. Otherwise I damn well would have answered the call.

However when you say things like "black cocaine" you just come off like someone who's running with a Liberal talking point.

Furthermore unless you buy into some conspiracy theory that Bush "started the war" to get his "oil buddies" more profits, the war ultimately helped destabilize the oil supply. Which I fail to see how that would benefit the country in any way. Not to mention that we didn't even secure oil when we easily had the opportunity to.

The industry didn't benefit either. Oil company profits go up and up, true. However on further analysis, we see "big oil" profit margins getting slimmer and slimmer as the cost of crude skyrockets. A situation NO business want's to be in.

In closing following your logical progression and support for alternative energy, does this mean that soon we'll be going to war with China over their rare earths that are needed to fuel the green movement?

RE: The Green Bubble
By Amedean on 3/28/12, Rating: 0
RE: The Green Bubble
By Reclaimer77 on 3/28/2012 8:24:52 PM , Rating: 2
I have to be honest that the partisan politics has been a growing thorn in my side and when I see so so many people polarized by ideology it has been tremendously discouraging and sometimes I pounce.

You and me both brother.

And no worries, we're a lot the same. I appreciate a spirited debate.

RE: The Green Bubble
By ritualm on 3/28/2012 5:41:51 PM , Rating: 2
Do you realize that, without any government support, every so-called "green" energy initiative will simply die at the brainstorming stage? There is no public demand for environmentally friendly tech, and the only way to raise that is to make fossil fuel-based solutions look expensive. That it actually costs many times more than its subsidized price is not important, even from a government standpoint.

EVs without subsidies and tax breaks are priced out of reach for most companies, never mind consumers.

RE: The Green Bubble
By Reclaimer77 on 3/28/2012 5:58:55 PM , Rating: 1
No he doesn't.

The way these people talk it's almost as if fossil fuels and green energy have always been equally viable, with the only difference being that "they" picked fossil fuels first and "subsidized" it.

What a bunch of baloney.

RE: The Green Bubble
By Paj on 3/29/2012 7:29:31 AM , Rating: 1
No energy industry could survive without government subsidies. This goes for oil, gas, coal, renewables, nuclear.

The International Energy Agency has said that excessive subsidies for fossil fuels is the biggest barrier to greater takeup of renewables.

Pricing of fossil fuels fails to take direct externalities into account - transportation, refining, storage - as well as more nebulous costs such as environmental damage, the human and economic costs of conflict (re: Iraq, Nigeria). These latter factors, while definitely present, are far more difficult to put into dollar terms.

"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Yahoo Hacked - Change Your Passwords and Security Info ASAP!
September 23, 2016, 5:45 AM
A is for Apples
September 23, 2016, 5:32 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki