Government grants are not required to be paid back? Right? When will the DOE be stopped by Congress from bankrolling advanced batteries made for cars no one wants or is willing to buy? We have yet another battery manufacturer and recipient of taxpayer money in trouble, but no need for panic over the $118.5 MILLION to Ener1, because the Department of Energy is “watching.” They can’t read a balance sheet, but they love batteries and have promised to “watch” until…until, well we don’t how long they will “watch” or what they will do when whatever happens. While Ener1 is taking taxpayer money, they are granting millions in a line of credit to the electric car maker they hope to sell batteries to. Since Ener1 has only used $55Million of the $188.5 MILLION grant, maybe the DOE will send the whole wad over to shore-up the troubled company. Yes, they just might do that. Look at this current DOE statement:
“So far $55 million of the grant has been paid out to EnerDel,” he added. “Any additional funds received from the government would need to be matched dollar for dollar with their own investment.”
“This is one of 30 new advanced battery and electric vehicle component plants that the administration has invested in across the country, creating the potential for tens of thousands of direct and indirect jobs,” LaVera said. “The U.S. will have increased our capacity to produce electric-drive vehicles batteries from virtually zero in 2008 up to 500,000 per year in 2015.
“The project has received broad bipartisan support and to date has progressed according to schedule and on budget,” LaVera added. Source: Politico
In November 2010, Ener1 entered into an agreement for a $5 MILLION revolving line of credit for ‘Think,’ an electric car manufacturer. Whatever monies were used of the line of credit, they were to be repaid in full by February 28th, 2011. On that date, another agreement was entered into between the two companies. It appears the original $5 MILLION was increased to $15 MILLION, and in February 2011, that increased by another $10 MILLION. Whatever amount was outstanding on March 31, 2011 was to be repaid in full on that date.
Think is a Norwegian electric vehicle manufacturer that is attempting to commercialize the Th!nk City, a plastic body city car that was originally developed by Ford. Over the years, Think has run into financial problems and gone into public administration, the Norwegian equivalent of Chapter 11 reorganization, on three separate occasions, most recently, in December 2008. Since Think had previously decided to use batteries from Ener1, keeping Think afloat was a high priority item for Ener1’s management and principal stockholders.
Think’s parent company Think Global went into bankruptcy in Norway, announced in June 2011.
Ener1 had previously written off a $73 million stake in Think, but told Investors earlier today that it was taking charge of $32.6 million of unpaid loans and accounts receivable from Think Global.
With a range of just 100 miles, a top speed of 68 miles per hour and a fairly minimalist interior, the Think City EV hasn’t been selling well against stiff competition from other electric cars.
With so many enlightenend souls hanging out on the streets of America, why would the Thiink not be selling like hot cakes? Might be because the launch price was to be $30,050.65 for the two-seat plastic car, but then came the federal “tax credit” of $7,500.00, so “quietly” the sales price went to $41,695.
The bump in price is almost identical to the $7,500 federal tax credit for electric cars. Is that a coincidence? The tax credit would have lowered the price to a more reasonable range in the mid-$20,000—maybe a palatable figure for an urban solo-driving commuter wanting a fun ride and trying to avoid unpredictable gas prices. At $34,000 after the incentive, it’s another matter.
Another “phoney baloney, good time plastic banana rock n roller” venture.
Ener1 failed to file its most recent quarterly report and was pulled by NASDAQ from trading. The company was delisted when shares hit 9 cents and has declined 94% in the last year. No word on how much has been donated to Obama from Ener1 or it’s interests. On the bright side, CEO Charles Gassenheimer was fired, and replaced by a EnerDel executive.
Any guesses how many jobs were created and kept by Ener1? Another bankruptcy by a green government darling was announced yesterday. Read about Beacon Power here. More on Obama’s plan for “green tech” jobs, and their balance sheets at Hot Air.