Sounds to me like management mis-managed their considerable financial resources, if the facts in the article accurate. Not necessarily fraudulently, mind you, but that too is a possibility. Could have been things like over-spending on the expense accounts, an unnecessary health club/spa, too-fancy bathroom fixtures, to many middle managers and not enough actual workers, etc.
Anyway, you would think that a properly managed company with 2700 units on order and 100+ employees could find a way to keep going.
Something does not make sense here.
How do you have 2300 backorders if you do not have the dealers to process the orders?
In today’s internet age why do you need dealers to sell cars? I have a nephew that sells cars all over the world via the internet. He works for a dealer but I don’t see why this company could not function as their own dealer.
Another story the MSM will boycott.
Complete List of President Obama’s Taxpayer-Backed Green Energy Failures
(as of Thursday, October 18th, 2012)
Evergreen Solar ($24 million)*
SpectraWatt ($500,000)*
Solyndra ($535 million)*
Beacon Power ($69 million)*
AES’s subsidiary Eastern Energy ($17.1 million)
Nevada Geothermal ($98.5 million)
SunPower ($1.5 billion)
First Solar ($1.46 billion)
Babcock and Brown ($178 million)
EnerDel’s subsidiary Ener1 ($118.5 million)*
Amonix ($5.9 million)
National Renewable Energy Lab ($200 million)
Fisker Automotive ($528 million)
Abound Solar ($374 million)*
A123 Systems ($279 million)*
Willard and Kelsey Solar Group ($6 million)
Johnson Controls ($299 million)
Schneider Electric ($86 million)
Brightsource ($1.6 billion)
ECOtality ($126.2 million)
Raser Technologies ($33 million)*
Energy Conversion Devices ($13.3 million)*
Mountain Plaza, Inc. ($2 million)*
Olsen’s Crop Service and Olsen’s Mills Acquisition Company ($10 million)*
Range Fuels ($80 million)*
Thompson River Power ($6.4 million)*
Stirling Energy Systems ($7 million)*
LSP Energy ($2.1 billion)*
UniSolar ($100 million)*
Azure Dynamics ($120 million)*
GreenVolts ($500,000)
Vestas ($50 million)
LG Chem’s subsidiary Compact Power ($150 million)
Nordic Windpower ($16 million)*
Navistar ($10 million)
Satcon ($3 million)*
*Denotes companies that have filed for bankruptcy.
good times...
My guess is that two major things caused the crash and burn. Number one: excessive management salaries, bonuses and expenses. Number two: a price tag 2 - 20 times a regular vehicle with no possibility of post sales support or spare parts.
