“Electric-car-battery manufacturer A123 Systems Inc., the recipient of nearly $250 million in government grants, filed for Chapter 11 bankruptcy protection Tuesday.”
From the WSJ:
In a bid to jumpstart the electric-car-battery industry, the U.S. government has provided more than $1.2 billion to battery makers in the past three years. But the industry has been slow to take off. Another battery maker, Ener1 Inc., which also received a government grant, filed for Chapter 11 protection earlier this year.
There is a reason why capitalism works. Most of it deals with the freedom of entrepreneurs to take risks with their own money. In this case the government took risks with our money. Bureaucrats make lousy investments.
Just an FYI
I was with GE in the late 60′s in their R&D group in Niskayuna New York near Schenectady as a young engineer. We designed and built a prototype electric commuter car called the Delta. You can Goggle it and read about it. After much study and road testing we decided that 40 miles on a charge would never work and the project was closed down. Current electric cars after over 40 years of battery research and development can still not get much better on a charge.
We are still, in my opinion, a longs ways from making “affordable” electric cars that will go at least 200 miles on a charge.
The government is totally incapable of making these kinds of investment decisions as there are no politicians that are experts in the required technologies and even if there were the money would go to those that supported the current administration — which ever political party it was.
The Pope-Waverly of the early 20th century had to be one of the first electrics. There is some information that Teetor-Hartley had experimented adding a gas engine to one of these to charge the batteries. An early hybrid prototype, I suppose. I don’t imagine there were any taxpayer funds involved.
Agreed, David. The EV consistently hits the brick wall of physics, namely a usable range. I still feel the EV could find a usable niche in fleets, i.e., courier and small delivery services. For the general public, well, we’re just not there yet.
You hit the nail on the head again, Jeff. Bureaucrats will ALWAYS make lousy investments because they will throw our money at anyone who waves their hand. At least an entrepenuer ( a savvy one ) will carefully analyze the risks and rewards before spending money.
Speaking of the wall of physics, our politicians smack it constantly and never learn from it.
Ah yes, the definition of insanity.
Give me $250mm and I guarantee I create some lasting jobs. How? Did it in the past with much much less for 27 years. This makes me sick.