Another Green Boondoggle Company Folds, Costs Taxpayers $500K+
Someone else just found that electric cars just aren’t what smart investors want to invest in…
A Salinas car manufacturing company that was expected to build environmentally friendly electric cars and create new jobs folded before almost any cars could run off the assembly line.
The city of Salinas had invested more than half a million dollars in Green Vehicles, an electric car start-up company.All of that money is now gone, according to Green Vehicles President and Co-Founder Mike Ryan.
The start-up company set up shop in Salinas in the summer of 2009 after the city gave Ryan a $300,000 community development grant.
When the company still ran into financial trouble last year, the city of Salinas handed to Ryan an additional $240,000 in investment money.
That’s $540,000 of local government money right down the tubes.
The problem? No investors.
Salinas Mayor Dennis Donohue said he was “surprised and disappointed” by the news. City officials were equally irked that Ryan notified them through an email that his company had crashed and burned.
Salinas Redevelopment Director Jeff Weir said Green Vehicles folded because of a “lack of investors,” and a $2.7 million grant from California Energy Commission that never materialized.
Donohue said he will work with the state to try to get at least $240,000 back from the now-defunct company.
Ryan outlined three mistakes he made while steering his company into a brick wall. All three reasons boiled down failing to generate enough capital.
Right, they’ll get less than half the money back. And the grandiose promises they made will never happen either:
The start-up company promised city leaders that it would create 70 new jobs and pay $700,000 in taxes a year to Salinas.
Of course, left out of the article is the fact that if there was any sort of demand for electric vehicles, there’d be money to make them without the government having to subsidize it… I don’t think Henry Ford had any government subsidies, after all.