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The company expects to be fully in operation during the bankruptcy

It would be sad if this were a case of folly, where the Volt was actually dangerous and GM was bravely soldiering on anyway but selling us dangerous cars. Instead the situation GM faces is one in which the facts say the car is safe, with a flaw the engineers are working to address, and a customer base who is rallying around the Volt.

The most recent issue occurred when a 2011 Chevrolet Volt that had been used for crash testing caught fire while sitting in an NHTSA overflow lot – three weeks after the car had been wrecked during testing. The concern by the NHTSA is that when these lithium ion batteries are damaged in an accident, there is an increased risk of fire hazards to the first responders who arrive to assist with the accident along with those who handle the vehicle after the wreck, such as tow truck drivers and owners of the salvage yards where these wrecked EVs are sent.

The Toyota Prius will offer AC outlets for its domestic market next year, allowing customers to plug in various household appliances. The idea arose from the March 11 earthquake when victims were using a Japan-only minivan called the Toyota Estima as an emergency power source when the electric supply was disrupted. The Estima comes standard with AC outlets.

The varying regulations concerning voltage in different countries will prevent Toyota from equipping all models worldwide with them, at least for now. The standard Japan household voltage rating is 100 volts, and a vehicle equipped with the AC outlet will have an onboard inverter to transform the DC current from nickel-metal hydride batteries in hybrid Toyotas into AC current.

This litany of troubles sure sounds like a company about to sink beneath the waves never to be seen again. The fact is that the stake-holders in Ener1 have known about the troubles since at least last summer. Everybody involved have had ample time to plan Ener1's resurrection.

Indeed, Ener1 has announced a unanimous agreement with its primary investors and creditors to restructure the company's debt and "provide up to $81 million to recapitalize the Company to support its long-term business objectives and strategic plan." The company has asked for a "pre-packaged" Chapter 11 process in the U.S. Bankruptcy Court in the Southern District of New York and if all goes well with the Bankruptcy judge they expect to be done in 45 days.

The company expects to be fully in operation during the bankruptcy, and none of its subsidiaries are going through bankruptcy. Toyota plans to offer AC outlets in the Prius and eventually the entire hybrid lineup, but for now, they will only appear on JDM models.

Disclosure to the public of the Chevy Volt crash test fire occurred with a November 11 Bloomberg News article, and was closely followed by announcements from NHTSA and GM. Rep. Jordan described this as NHTSA holding out on making an announcement until being "outed" by Bloomberg's report. However NHTSA Administrator Strickland maintained that the NHTSA was very close to making their announcement anyway, and that NHTSA's personnel had worked with Bloomberg's reporters on ensuring the facts were reported correctly.

The NHTSA has a statutory duty to disclose risks to the public, but that statutory duty also extends to determining actual risk before disclosing a risk to the public. In other words, the NHTSA's role is not to shout FIRE in a crowded theater if there's no actual fire, but to only disclose actual risks based on data they collect from investigations.

Administrator Strickland explained it would have been illegal for NHTSA to disclose a risk if there was no actual risk. Strickland went on to describe that prior to November 11 they were involved with preliminary pre-investigation work necessary to discover just how severe was the risk posed by this one fire.

“In Denmark, (researchers) will now shift its focus to another important application of V2G research, which is buffering intermittent renewable energy resources. Working to integrate the power grid and EVs, as part of the 'Smart Grid' initiative, makes economic sense because it benefits EV users and provides power back to the grid. We are happy to be working with DTU and look forward to furthering V2G implementation in Europe.”

The Denmark university needed an eBox specifically because it is equipped with AC Propulsion's patented integrated charger. Now that regulatory hurdles have been cleared and the car is in tow, research is set to begin. Researchers would not have been able to start without the special charger, which allows grid-connected charging and discharging at up to 18 kW.

With V2G technology, EVs that are plugged in support grid functions as they recharge their batteries. EV owners get paid for the use of electricity obtained from their cars.

Point is, lighter weight is what’s needed and wanted by the public, not smaller cars. Ask any family. It is the few that afford a Chevy Volt; but it is also the few that can live with a small 4-seater as a family vehicle.


Posted: 1:59 AM, Feb. 23, 2012
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