Ford Transit Connect EV Battery Maker Azure Dynamics Files for Bankruptcy
March 28, 2012 11:19 AM
comment(s) - last by
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
This article is over a month old, voting and posting comments is disabled
RE: The Green Bubble
3/28/2012 8:58:35 PM
That is quite a fallacy...
(I have no idea about the numbers so I'm going to follow yours)
Gov gets 23 cents/gallon @ pump -> from PEOPLE
Gov gives 2 cents/gallon @ pump -> to oil companies
So, it is exactly the same as giving money to finance green initiatives.
Additionally, you'd probably need to take into account, that part of oil is imported, so that is depleting the economy...
So here are the money trails:
- people -> gov (this is what you call profit from oil!!)
- people -> oil -> part to other countries
- gov -> oil -> part to other countries
This doesn't seem positive in any way... and no profit whatsoever except for oil companies, some of which might be domestic, but a large chunk is not domestic.
So, trying to break these money trails seems like a good idea... but not at any cost...
I understand and agree, giving money to finance that, should be done carefully... like, making sure that there is also some (for instance 50%) from other investors, and probably a lot more conditions.
RE: The Green Bubble
3/30/2012 11:36:25 PM
Let me guess, you think that having the oil companies pay less of THEIR money to the gov't in taxes is the same as the Gov't cutting a check of OUR money to the oil companies.
RE: The Green Bubble
4/1/2012 11:09:55 AM
That doesn't even make sense!
As you can easily see in the money trails I posted above:
- there is 0 money going from oil companies to gov't
- there is money going from gov't to oil companies (subsidies)
"Vista runs on Atom ... It's just no one uses it". -- Intel CEO Paul Otellini
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
Hot Air? President Obama, G7 Pledge to Eliminate Most Fossil Fuel Use by 2100
June 8, 2015, 5:40 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Most Popular Articles
Kentucky Man Faces up to 10 Years in Prison for Shooting Drone Trespasser
August 13, 2015, 2:58 PM
Microsoft's Windows 10 Leaves Lumia 530 Behind w/ 8 GB Storage Requirement
August 25, 2015, 4:02 PM
Best Buy Rapidly Ramps up Apple Watch Rollout After "Strong" Early Sales
August 26, 2015, 11:42 AM
Future of Lumia Uncertain as Microsoft Lays Off 2,300, Closes 1 of 3 Finnish Offices
August 24, 2015, 6:14 PM
Windows 10 Hits 75 Million Users; Grows Nearly 4x as Fast as Windows 7
August 28, 2015, 10:22 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information