Phoenix Motorcars cancels UQM Technologies motor order!
A friend who spends more time than I do perusing the financial statements of various companies alerted me to the latest release from UQM Technologies. UQM you might recall makes electric motors that have appeared in a variety of prototype and production intent electric vehicles. Perhaps most notable on their list to readers of this site is Phoenix Motorcars. Phoenix is the purveyor of a battery powered version of a Korean Sssangyong pickup truck.
Buried in UQM's latest quarterly financial report was the following statement :
"Separately, we have been notified by Phoenix Motorcars, Inc. of their intention to cancel the Purchase and Supply Agreement with us and an associated purchase order to buy $9.25 million of our products, due to significant issues at Phoenix Motorcars, Inc. unrelated to our performance."
Based on this, things don't look good for Phoenix. We have made inquiries with Phoenix but haven't heard anything back yet. As soon as we hear something back we'll let you know what is happening.
[Source: UQM Technologies, thanks to Darryl for the tip]
Reader Comments (Page 1 of 2)
Patman3 12:01AM (1/29/2008)
Well it's 2008 now. Can I get one these SUT's somewhere? Or is it shutdown?
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why not the LS2/LS7? 12:24PM (11/01/2007)
Don't forget to blame GM and their unholy alliance with big oil.
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Dave 12:56PM (11/01/2007)
Maybe it's time for Phoenix to find a buyer that can pull this off. Perhaps a Better Place would be interested?
Phoenix seems like the type of operation that could benefit from a a leasing program or battery rental program.
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beelzabush666 1:31PM (11/01/2007)
the lithium batteries are proving to be not yet ready for prime time.
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Franklin 1:45PM (11/01/2007)
Very bad news.
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Franklin 2:03PM (11/01/2007)
Under Part I, ITEM 5. OTHER INFORMATION:
We received a purchase order dated January 8, 2007 from Phoenix Motorcars, Inc. in the amount of $9.25 million for the purchase of 500 propulsion systems and DC-to-DC converters. On January 12, 2007 we completed a Purchase and Supply Agreement with Phoenix Motorcars, Inc. that specifies the terms and conditions of our supply relationship with Phoenix. On October 30, 2007 we were notified by Phoenix Motorcars, Inc. of their intention to cancel the Purchase and Supply Agreement with us and an associated purchase order to buy $9.25 million of our products, due to significant issues at Phoenix Motorcars, Inc. unrelated to our performance. We believe that a substantial portion of the purchase order is not subject to cancellation. Accordingly, we expect to hold discussions with Phoenix to obtain additional information regarding their position and pursue a satisfactory resolution.
Here's the SEC filing.
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Franklin 2:05PM (11/01/2007)
Sorry it didn't HTML. Here is the (long) link:
http://www.sec.gov/Archives/edgar/data/315449/000031544907000035/form10q09302007.htm#ITEM%202.MNDA
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Kardax 2:17PM (11/01/2007)
This begs the question: what "significant issues" are we talking about here?
The other part of the paragraph stating that the order can't be completely canceled is a problem by itself: Phoenix could be liable for some separation expenses.
I dunno, this could be some simple thing like Phoenix finding a cheaper supplier. In any case, they've got some questions to answer.
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Domenick 3:05PM (11/01/2007)
@beelzabush666: It doesn't have anything to do with the batteries. (Appropriate name, btw)
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Chris M 4:35PM (11/01/2007)
I see two possibilities:
1. Phoenix may have found another motor supplier, with a motor that may be more efficient, or lighter, or smaller, or cheaper, or a combination of those improvements. This may, in the long run, be good news.
2. Phoenix may be in financial trouble, unable to afford purchase of the basic components needed. If unable to get additional funding, Phoenix will have to merge or sell off assets and shut down. This would be bad news for Altair and fans of Phoenix, but it would also mean less competition, and improve the market for other EV makers.
It is too early to tell if we have good or bad news here. We'll just have to wait and see.
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AES 4:50PM (11/01/2007)
So the tipster was "Darryl" who "spends more time than I do perusing the financial statements of various companies"?
Sounds like Darryl Siry at Tesla, whose marketing job at Tesla now apparently also involves finding and publicizing dirt on the competition.
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Jeff Sutter 9:44AM (11/02/2007)
That issues have gotten so serious at Phoenix Motorcars is ominous – the vehicles they’ve engineered are so right and sorely needed on the road to prove the point. Peak oil may be on us if today’s news of oil shortages that sent the price above $93/barrel signal the beginning of the end of easy to get supplies.
In addition to the financing issues that plague all private finance start-up’s, the two technical issues that have been discussed are in the realm of regulatory certification. The first involves a plug. It may be that regulators are unwilling to allow a regular 220V dryer plug for the Phoenix's onboard charger or the high voltage connection for fast charging may present issues for wide adoption. Worst case, somebody’s holding out for a standard and won’t allow any cars to be certified until it’s promulgated. I wonder if this breakdown is involved with why Boshart Engineering has been dropped from the Phoenix Strategic Partner’s page.
The other issue involves certification as a ZEV by the California Air Resources Board (and the production credits that go with it). Despite a successful demonstration of the 10 minute recharge and 100 mile range capabilities to meet the requirements for Level 3, CARB seems unwilling to support the battery storage mode in favor of hydrogen fuel cell – they doubt that Lithium batteries can be made economically (as if hydrogen production and infrastructure costs could be less). I don’t know whether it’s stupidity or payola but it sure looks like Lucy jerking the football away when Charlie Brown goes to kick it. In German, the expression that comes to mind is Wahnsinn, Tobsucht, und Dumheit! (Nonsense, stupidity, and madness).
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why not the LS2/LS7? 6:17PM (11/01/2007)
Maybe it's not dirt. Maybe they're going to buy motors from Tesla.
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Domenick 6:45PM (11/01/2007)
If I was a blogger, I'd just call them up and ask them what's going on. Enquiring minds want to know. And in the absence of news, said minds will invent their own.
/hint
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Sam Abuelsamid 6:52PM (11/01/2007)
Domenick, I did contact Phoenix before this post was written but I have yet to get any response from them.
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Domenick 7:15PM (11/01/2007)
Thanks, Sam. Good to know you guys are on the ball.
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Darryl 9:47PM (11/01/2007)
I don't think sharing publicly available information is "dishing dirt" - I have two public RSS feeds for news that I read every day that relates to the EV industry (and other stuff that sneaks in.) Anyone can read what I am reading here:
http://www.google.com/s2/sharing/stuff?user=102146020244751660364
and here
http://www.google.com/reader/shared/17830882837709761586
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Joseph 5:00PM (11/02/2007)
Tsk. Tsk.
Tesla Motors told on Pheonix Motorcars: "Look, Look! They're delayed too!"
LOL Even start-up companies are rivaling against each other.
What Miles did to Tesla in that letter was terrible, and very unproffesional. Tesla informing ABG of public information isn't nearly as bad, but still, why don't you guys just leave each other alone? ;)
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John 8:32AM (11/02/2007)
Phoenix may have a better motor supplier:
Through new efficiencies provided by new motor technology and the use of composite components, Ontario-based Phoenix Motorcars announces that it is on the road to producing over 500 Phoenix Sport Utility Trucks (SUTs) featuring more compact packaging of the Altairnano (NASDAQ: ALTI) Nanosafe™ battery than originally projected.
http://money.cnn.com/news/newsfeeds/articles/marketwire/0323402.htm
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Phil L. 8:57AM (11/02/2007)
Darryl -
Thanks for the links!
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