'Green' Electric Car Dealer Ends In The Red

[DEDixon 39]

http://www.news4jax.com/green-pages/22255164/detail.html

BERKELEY -- Even in one of the greenest cities in America, Green Motors couldn't survive.

Berkeley, a city which for years has held high ranks on environmental organizations' annual lists of eco-conscious do-gooders, was ranked as the second greenest city in the United States last year by MSN.com.

It was the first city to ban plastic foam, the first city to ask residents to reduce greenhouse gas emissions by 80 percent by 2050 and the first city to offer help with solar financing. Berkeley has a fleet of city hybrid vehicles, a maze of designated bicycles lanes and a mayor who walks to work.

So when Green Motors, the first business in the Bay Area selling strictly electric cars, trucks, bikes and scooters, set up shop in the former Cadillac dealership at 1500 San Pablo Ave., everyone from Mayor Tom Bates, who does not own a car but instead walks 10,000 steps a day on city and personal business to Rep. Barbara Lee, D-Oakland, came in for a look and a test drive.

''We were the number one (electric car) dealership in the nation," said Marc Korchin, the 54-year-old former owner of Green Motors, who is now selling cars at Toyota of Berkeley. "We sold more than 50 cars in the first year and then everything went to zero because of the recession. All of the sudden, the idea of going green got a little bit in the red."

The vehicles were priced from $14,000 to $25,000 but only took about $1 a day to charge.

The dealership launched in November 2007 and closed just two weeks before its two-year anniversary. Now, a used car dealership has taken over the San Pablo Avenue spot, Korchin said.

''We are sorry to see that he couldn't make it, but a lot of it has to do with the economic times. I think the small motor car still has a ways to go before it gets acceptance by the buying public," said Bates, who test drove a Canadian ZENN car shortly after the business opened. ''The frustration was it would only go 25 mph. I felt it needed to have additional acceleration. I think it's the wave of the future, he might just have been a little bit ahead of his time."

Electric cars are restricted by law to roads where the speed limit is 35 mph or lower. Of course, that means no freeway driving and in Berkeley -- with its steep hills -- power might have been an issue on the slopes, Bates said.

Larry Giustino, the CEO of A1 Sun Inc., a solar installation company in Berkeley, bought a ZENN at Green Motors in 2007 and said he uses it for company business at a cost of about a penny a mile, he said.

''To me, (the closure) was such a tragedy," Giustino said. "When he was open, there were a lot of people coming in and out of the dealership. It was a learning center, a hub for real life stuff. I wish the city or state could have subsidized him. Here's a company that was out ahead of its time and got no (outside financial) support."

Korchin is still trying to sell the last of six electric cars parked behind the showroom and he hasn't given up on pushing his electric car passion.

''Basically, I am selling cars where I am -- functions at the Rotary Club, the Chamber of Commerce. The future is electric cars as I see it, but it's going to take a mainstream automaker to get involved," he said.

Toyota has plans to manufacture an all-electric city car by 2012 and a wider fleet of gas-electric hybrids. The Nissan Leaf is an electric car that is expected to be marketed in North America, Europe, and Japan, later this year, much to Korchin's delight.

''I'm still very much involved in the car industry and trying to move it forward in the green direction. I think of myself as the e-carmony guy -- the person who matches the right people with the right car," he said.

[Hilarious Clinton 452]

Their target buyer doesn't have a job. Maybe we should start a new government program. Tax SUV owners and give green cars to correct minded greenies.

[Ban Hammer 13,346]

lots of irony in this story. electric car dealership goes belly up in california!

[natty bumppo 297]

lots of irony in this story. electric car dealership goes belly up in california!

CA can't afford the electricity ... and can't efficiently build more power plants ....

[Pinocchio Liberal 268]

''To me, (the closure) was such a tragedy," Giustino said. "When he was open, there were a lot of people coming in and out of the dealership. It was a learning center, a hub for real life stuff. I wish the city or state could have subsidized him. Here's a company that was out ahead of its time and got no (outside financial) support."

Is Steves last name Giustino?

[natty bumppo 297]

''To me, (the closure) was such a tragedy," Giustino said. "When he was open, there were a lot of people coming in and out of the dealership. It was a learning center, a hub for real life stuff. I wish the city or state could have subsidized him. Here's a company that was out ahead of its time and got no (outside financial) support."

Is Steves last name Giustino?

imagine that ... capitalism at work in CA ....

CA has gotta raise taxes so non profitable businesses can stay in business

[Pinocchio Liberal 268]

imagine that ... capitalism at work in CA ....

CA has gotta raise taxes so non profitable businesses can stay in business

That or drop 10000 hybrid milk cows all over the state for ppl to nurse on!

[natty bumppo 297]

That or drop 10000 hybrid milk cows all over the state for ppl to nurse on!

are these the no bs variety?

[Pinocchio Liberal 268]

are these the no bs variety?

Of course not! they are green cows with solar panels on there backs to offset flatulence and be carbon neutral. Silly!

[Dan J 277]

A lot of dealerships have gone under in the past couple years. Don't think this means anything other than its crappy time to be selling cars.

[natty bumppo 297]

Of course not! they are green cows with solar panels on there backs to offset flatulence and be carbon neutral. Silly!

these must be the ones with great bs retention properties .... that periodically explode and color our world with hope

[natty bumppo 297]

A lot of dealerships have gone under in the past couple years. Don't think this means anything other than its crappy time to be selling cars.

if the product is good ... sells at a reasonable price ... the customers will be there.

there again this is in CA ... the state where the gov't issues IOU's .....

[Dan J 277]

if the product is good ... sells at a reasonable price ... the customers will be there.

there again this is in CA ... the state where the gov't issues IOU's .....

You have to sell a certain amount of product in order to cover overhead and all other expenses. You might be able to during a good/growing economy, but might not during a poor one. Depending on the business operation, you may not be able to reduce overhead enough to compensate for a decline in sales during a poor economy.

You could try sell product below cost, but that wont be sustainable for very long.

[natty bumppo 297]

You have to sell a certain amount of product in order to cover overhead and all other expenses. You might be able to during a good/growing economy, but might not during a poor one. Depending on the business operation, you may not be able to reduce overhead enough to compensate for a decline in sales during a poor economy.

You could try sell product below cost, but that wont be sustainable for very long.

even in a downturn ... profits are still made

T,GLW, WMT, MCD, etc. Then there is the price of F (watched this stock for the past 15 months? ... hint: this IS a car company)

[Danno 1,228]

There is such a small market for most of this "green" stuff the Leftist know the Gov't must pass laws to FORCE people to buy into it, as they never will other wise.

When market conditions exist for such things... the market will go green by it's self.