This week, another electric car manufacturer filed for Chapter 11 bankruptcy. Despite the once projected high demand for such vehicles, Ecotality is the third green car part maker to seek financial relief in bankruptcy court this year. While many understand the economic pressure causing profitability issues to this industry, most certainly aren’t happy about the financial details these companies are hiding.
After the initial filing this week, Ecotality has already gone on record to suggest their stockholdings are likely to be worth little to nothing. As such, the company has faced repeated financial crisis since 2008 resulting the more than $100 million in bailout funds from the Department of Energy. Financial support has also come from the state of California, Australia and numerous private investors.
Even with a revenue that nearly doubled in 2012 yielding $54.7 million, Ecotality still claimed a loss near $9.6 million. Another near million in back wages and damages resulting from allegations the company broke labor laws, Ecotality has since this coming since early summer. As part of their mission to remain in operations and clean up finances, Ecotality is accepting temporarily relief funds from Nissan in the form of $1.25 million. Speculation now suspects that Nissan may offer to absorb the company in efforts to keep its electric model, LEAF, supported in the future.