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Manhattan Institute Senior Fellow Robert Bryce and National Legal Center Associate Fellow Paul Chesser on the government grant to A123 systems.
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After a 249 million dollar stimulus grant from the federal government you think electric -- battery maker -- one Q3 systems would be.
In great financial shape so then why -- -- being dubbed the next cylinder accurate away and -- it fell for the national legal and policy center and Robert -- a senior fellow for the Manhattan institute Robert let's start with you.
What in the heck is strong with this company I mean you look at this got all kinds of federal -- and losses red -- for days why it is such a failure -- Well I mean the short business answer Jerry is that there are their losses are growing faster than their revenues and they're depending.
But -- business case.
But they're depending on the electric vehicle sector for their future and as could've been predicted easily had the Obama administration look closely at the history of the electric vehicle business the market is not developing the -- and customers -- are staying away in droves.
-- and it's not been popular with consumers Paul to bring UN I wanna talk about this battery explosion with they went to three.
Coming into the hospital what it's actually happen there.
Well details aren't there's just only a few details but we knows -- -- they want you -- these batteries they've got the contract wins GM to.
Provide the -- for this next coming vehicle business spark which is gonna followed the vault which is not been selling very well as Robert said.
But the the timing on this is amazing.
This came the same day that.
The Department of Energy announced they would extend a -- Q3 for two more years -- two more years to spend down the grant money which is just.
-- the timing on this is mind.
-- while that had his mind blowing -- Robert yield you know -- this isn't the only failed Green company of beacon power range fuels that are wind you name that it's there.
-- -- -- what's the take away here.
Well I think the it's clear that with all these grants and all these loans the Obama administration has been in the business.
Of trying to pick technology winners and that's not the role of government.
I'm for the government trying to do basic research -- or R&D and in energy.
Issues energy technologies but what we've seen with this Obama administration has a lot of trying to pick winners and they've they've been taking very badly.
And you say it picking winners in the electric vehicle industry in particular is a big mistake.
-- to -- we had 2.4 billion in grants dished out.
And what do we have to show for.
-- we have a lot of mistakes we've got the DED companies like -- error in a one Q3 and Ener1.
You know this pay one Q3 company looks a lot like general one which is already filed bankruptcy.
In that they were both each dependent on a small.
Electric vehicle company.
That went that are struggling or or went down.
And so anyone Q3 is in a similar situation -- was.
So it's insists a bad judgment it's hard to understand -- the Department of Energy is doing.
They cut off sister that sister was a one.
But they yet they extended a one Q3 it makes absolutely no.
-- -- crazy RE IE it you know you look at this.
Robert and you say listen to their rhetoric which is essentially.
You know electric cars -- they're gonna be the biggest thing since sliced Brad it's coming it's coming it's coming let's invest early.
So that we have a technology on hand and -- can lead in the industry what's wrong with that.
Won't.
Jury that they history of the electric cars a century of failure tailgating failure.
We've seen this we've heard this before that -- just a few years electric cars are going to be viable if only oil prices are high and have batteries are are are are good enough.
We've heard this since the early nineteen hundreds there's nothing new here electric cars -- the next big thing and they always will be.
I know you have to say that and they've been around for how long what was the first year that somebody -- hey let's build an all electric car.
Won't.
Remember Thomas Edison was it was -- thought that there was a future electric cars and then Ford developed a good -- reliable internal combustion engine and Edison immediately said.
You know I don't think this is gonna work -- that that they're the range is too small.
The right just to bid is not sufficient.
And gasoline is is is that going to be the vehicle of the -- gasoline and then oil fueled.
Cars are going to be the vehicles of the future he's been proven exactly right.
Paul -- it what are they did technical impediments to these actually becoming something that.
The average American would want to buy -- would actually benefit from -- Bob Roberts might be a little better to answer that question.
That -- that he's right it's been around for a hundred years you -- on line on you to -- you can look it up but Jay -- electric vehicle.
They'll show you in and it did demonstrate you that this technology -- been around a hundred years and it's no different now than it was then.
They take too long to charge they take at least thirty minutes did you get the real fast charger which are hard to find.
They cost a lot up front as we've seen with the vol in the Nissan leaf.
And that they're just they don't go far enough they don't even they don't go even a hundred miles yet.
You know largely could go either the adults you know -- -- with all the development of the other energy sources for it just seems bizarre to me.
To be you know continuing down this failed path that you guys so rightly put it thanks for coming -- -- -- Robert appreciate your time.
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