Ford Transit Connect EV Battery Maker Azure Dynamics Files for Bankruptcy
March 28, 2012 11:19 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
, which received nearly $43 million from the government in August 2010 and filed for bankruptcy in November 2011.
The Detroit News
"Game reviewers fought each other to write the most glowing coverage possible for the powerhouse Sony, MS systems. Reviewers flipped coins to see who would review the Nintendo Wii. The losers got stuck with the job." -- Andy Marken
Battery Maker EnerDel/Ener1 Received $118M DOE Grant, Now Filing for Bankruptcy
January 27, 2012, 10:01 AM
DOE Deals Another Bad Energy Loan as Beacon Power Files for Bankruptcy
November 1, 2011, 10:03 AM
$500 Million Wasted on Bankrupt Solar Panel Company; White House was Warned
September 14, 2011, 4:22 PM
Ford Transit Connect Commercial Electric Vans Ships
December 9, 2010, 10:35 AM
Ford Reveals All-electric 2011 Transit Connect with 80-Mile Range
February 9, 2010, 8:00 AM
Debuted at CES 2017 - Corning Gorilla Glass Concept Car
January 7, 2017, 3:02 AM
Happy, healthy and feastive New Year to you and everyone in the world that about to celebrate the Season Holidays
January 1, 2017, 12:01 AM
In 2017, Here are the New Autos of 2018
December 30, 2016, 5:00 AM
What Happens When You Put a Blind Man in a Driverless Car?
December 14, 2016, 5:00 AM
Would You Like to Build Your Own BMW?
December 12, 2016, 5:00 AM
Jaguar I-PACE – Jaguar’s New Electric Concept / New SUV
November 16, 2016, 5:00 AM
Most Popular Articles
Super Hi- Vision Will Amaze the World
January 16, 2017, 9:53 AM
Samsung Chromebook Plus – Coming in February 2017
January 17, 2017, 12:01 AM
Samsung 2017 Handset’s Updates
January 17, 2017, 12:01 AM
Comparison – Surface Pro VS Tbook X5 Pro
January 21, 2017, 7:00 AM
Comparison – iPad Mini Vs Huawei MediaPad M3
January 19, 2017, 2:08 AM
Latest Blog Posts
Some new News
Jan 23, 2017, 8:59 AM
What is new?
Jan 22, 2017, 7:00 AM
Nintendo signals end for Wii U
Jan 21, 2017, 7:00 AM
Jan 20, 2017, 7:00 AM
News of the World
Jan 19, 2017, 7:00 AM
News of the Day Wednesday 1/18/2017
Jan 18, 2017, 12:01 AM
Jan 17, 2017, 12:16 AM
News of the Day
Jan 16, 2017, 12:10 PM
News and Technology Advancement
Jan 16, 2017, 7:58 AM
Jan 15, 2017, 12:32 AM
Here is Some News
Jan 14, 2017, 12:39 AM
News: Improved and New products
Jan 13, 2017, 12:01 AM
News around the world
Jan 12, 2017, 12:01 AM
Rumors and Announcements
Jan 11, 2017, 12:01 AM
This year CES and ridiculous gadgets
Jan 10, 2017, 12:01 AM
Nokia Android phone spurns the west.
Jan 9, 2017, 12:08 AM
New at CES 2017 - Changhong 8K Super Slim TV 65ZHQ3R
Jan 8, 2017, 1:07 AM
Debuted at CES 2017 - Vuzix Blade 3000 Smart Sunglasses
Jan 8, 2017, 12:39 AM
Some news of Day
Jan 7, 2017, 12:01 AM
News 2017 CES
Jan 6, 2017, 12:01 AM
Here is the Latest News in Tech
Jan 5, 2017, 1:47 AM
More Blog Posts
Copyright 2017 DailyTech LLC. -
Terms, Conditions & Privacy Information