Posted on 07/18/2011 3:14:37 PM PDT by keat
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.
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.
Mike Ryan YouTube Green Vehicles President and Co-Founder Mike Ryan
Last year, Salinas city officials said they were excited about Green Vehicles moving from San Jose to Salinas because they wanted to turn Salinas into a hub for alternative energy production.
City leaders wooed Green Vehicles to jump-start the sputtering local company and turn Salinas into an "electric valley." Donohue and Weir both voiced their high hopes for Green Vehicles.
The start-up company promised city leaders that it would create 70 new jobs and pay $700,000 in taxes a year to Salinas.
Green Vehicles was supposed to be up and running by March 2010 inside their 80,000 square-foot space at Firestone Business Park off of Abbot Street.
Ryan had lofty goals, listing his company's mission as: "To make the best clean commuter vehicles in the world; To manufacture with a radical sense of responsibility; To engage in deep transparency as an inspiration for new ways of doing business."
Green Vehicles designed two vehicles, the TRIAC 2.0 and the MOOSE, which it planned to manufacture.
On July 12, Ryan wrote a blog post announcing that his company was closing.
"The truth is that not realizing the vision for this company is a huge disappointment," Ryan wrote.
Ryan outlined three mistakes he made while steering his company into a brick wall. All three reasons boiled down failing to generate enough capital.
Obama didn’t happen to visit, did he?
The article didn’t say what the total investment on the project was...not surprising that for a couple of million dollars or less this was all that was produced.
Anyway, there is no such thing as an economical electric car, given the current state of battery physics. This thing was a doomed loser from the start.
That's what I'm thinking. $500,000 doesn't go very far in starting a business. That hires what 10 $50,000 workers?
How many people does that “car” even hold? Looks like it could accomodate one person comfortably.
I like the part where they tried to barter an electric vehicle in lieu of rent. LOL. "Son, just pay the rent."
All the other articles I googled were so sycophantic I wanted to puke.
“All three reasons boiled down (to) failing to generate enough capital.
Oh, horse sh*t. Mr. Ryan sucked a half a mil out of the idiots in Salinas and he’s on his way to the Bahamas for a well earned vacation.
Yep. Easy to snooker the brain washed. My Ryan knew that. As do many more that have run away with tax payers monies in these whacked out times.
TRIAC Expected base model price $24,995.00
If any industry is capable of doing well, it does not need to be subsidized by the taxpayer.
‘Green’ technology, car companies, ethanol, farm subsidies, I don’t care what it is, if it needs to be subsidized it’s not a money maker.
The only thing I can support a government doing for a business, besides keeping crime down, keeping infrastructure decent, and enforcing contracts, is to have enterprise zones -
that ANY business can utilize -
to attract businesses to their area.
I hope Mr. Ryan remembered to give himself a large bonus.
http://3wheelers.com/einterview4.html
https://secure.wikimedia.org/wikipedia/en/wiki/Liz_Carmichael
GREEN Vehicles is closing its doors
It is with great regret that I must report that GREEN Vehicles has been unsuccessful in bringing in the resources necessary to continue as an organization, and we will be shutting our doors. As an entrepreneur, I know Im expected to approach this moment with the perspective that we take chances that sometimes will pay off and at other times will not, but it would be disingenuous for me to adopt such a view.
The truth is that not realizing the vision for this company is a huge disappointment. Our dream was to change transportation for regular people to something practical, sustainable, affordable, and cool. We aspired to be the fast-moving vehicle platform for innovations from a space in high flux: the deliberate first mover. I believed, and still believe, that with resources we could deliver a lighter weight electric vehicle, purpose-built for the daily drive; that we could integrate the newest battery and electric drivetrain technology more quickly with our lower minimum efficient scale production system; that we could lead the charge into the full benefits of a connected vehicle, a peer-to-peer and traditional carshare-ready vehicle, and someday an autonomous vehicle; that we could introduce a buy local option to a manufacturing industry whose focus is very nearly the opposite; and that in doing so, we could bring incredible value to consumers whose needs have been so narrowly represented by the incumbent automakers.
Our vision attracted some very talented and dedicated people to our ranks. We built a network of support from strategic partners willing to invest time and money in our ventures future. We found incredible support from our Early Adopter customers willing to overcome the quirks of a scantly funded commercial pilot program with us, and from eager would-be Triac2.0 owners with high hopes for a well-fitting Clean Commuter solution. I will take this opportunity to offer my most heartfelt thanks to all of you for dreaming differently with us, and my most sincere apologies for not delivering the conclusion we worked so hard to bring about.
In the spirit of openness that I had hoped to promote within this company, and in the hopes that our lessons can help other entrepreneurs avoid the same mistakes, I will share three things that I would have done differently given the opportunity:
First, I would and will only start companies with a solid base of equity partners in the management team capable of achieving the first two years worth of milestones. Not doing so cost this company valuable time in the development of a more complete product as our ownership passed over desperately needed, world-class talents who were not surprisingly unwilling to work without a significant ownership incentive. If a majority of a startup companys shares are owned by non-value added investors, you are at risk of fighting a zero-sum game with deep misalignment, rather than taking a collaborative build something great approach. Startups are hard enough without wildly conflicting interests.
Secondly, for a complex, capital-intensive business such as ours, I would seek an enabling venture partner early in the process. There are few things more frustrating than sitting on projects that could differentiate your company and product in important ways while competitors continue forward. Furthermore, I believe a strong VC partner can help open important doors: for major development partners who may otherwise be unwilling to jump in and cooperate with a startup; for top talent; for other funding sources during future rounds; etc. Holding on too tightly to percentages and control of an organization that is not equipped to succeed can cost everyone everything.
Third, I would bite off chewable pieces. Given that very few startups have more cash than they know what to do with, there is almost by definition a capital pinch inside new ventures. There would have been much more value in building one of our sub-systems (such as the traction battery pack or the connected in-vehicle infotainment system) perfectly than a complete vehicle prototypy. These complete mini-products could potentially have generated some cash to fuel the larger business goals, or at the very least represented the capabilities of our team well as well as the quality-intent of our product. This strategy is probably situational, and may just look clearer in hindsight, but I have that at the moment so its worth mentioning.
If you have been a supported of GREEN Vehicles, thank you.
Kind regards,
Mike Ryan
President
I like the taillights - looks like they were salvaged off a kiddy carnival ride. Wonder if they got the horns too?
All the “green” industries are there to do is make more green cash off those think morality is how you go about saving the Earth and giving them the holier than thou attitude.
And the taxpayers who shelled out the bucks to help this country? Fool-Aid!
Salinas Mayor Dennis Donohue says hes not giving up hope.
Clearly electric vehicles are going to be part of the mix of the automotive industry and Im pleased to be part of that, he says. Green Vehicles is a startup huge scam by a garden variety con artist and theres growing pains with startups us learning about scammers that play on our brainwashed leftish mentality.
Ah. Much better. lol.
Boy. Looks safe /sarc.
Sorry. I've been to college and I've got a degree in engineering but... what the f*** does any of this mean?????
When the company still ran into financial trouble last year, the city of Salinas handed to Ryan an additional $240,000 in investment money.
Translation: Your federal tax dollars.
One hardly knows whether to laugh or cry.
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