Filed under: NEV (Neighborhood Electric Vehicle), USA
Entrepreneurs, Dreams, and Promises: Spark EV
Let's say that you are the enterprising sort. Let's also say that you are passionate about electric vehicle technology. You recently learned about a Chinese company that is producing what appear to be some very cool electric vehicles. Given that major OEMs in the US are not producing electric cars, and given that there appears to be a fair amount of consumer demand, you decide to take a chance. You see an opportunity and you take it. You build a company around this product and you start taking orders. There's one small problem, however. The company is not ready to ship the cars. Or there's a technological glitch. Or they're waiting for a new version of the battery. Whatever it is, your dealers are getting impatient and calling you a fraud.
I'm not sure if this was the exact situation for Michael Papp, owner of the now defunct Spark EV. Papp was recently charged and arrested for failing to deliver 14 electric cars to Electric Transportation of Arkansas and Electric Cars of Houston. Today, Papp was ordered by a Pennsylvania Court to pay $100,000 to these companies to avoid criminal charges. His lawyer says that he will pay the amount.
While I am not absolving Papp, I wish to bring attention to the day-to-day reality that characterizes many e.v. start-ups. As several electric vehicle entrepreneurs have realized, starting a car company in a field dominated by multi-billion dollar corporations is not easy. What compounds the problem further is that electric vehicle entrepreneurs are in the business of "disruptive technology." Producing and selling cars based on a new technological platform requires a lot more time, money, skill, and luck than most entrepreneurs realize when they begin their dream. Perhaps it is this lack of foresight, coupled with an overwhelming desire to get this technology on the road, that causes many companies to over-promise and under-deliver.
Reader Comments (Page 1 of 1)
Amtoro 4:57PM (7/18/2008)
Papp has posted a very sad story on his spark EV web page; the raise and fall or Spark EV, he calls it.
I was almost tempted to believe everything on it until I remembered the offensive and arrogant language that filled his website when he was still taking orders for these cars. I personally don't think that the fact of having a home office started the row, many importers work out of a container with an A/C unit on the wall and two hazed windows; I think the fault is as much of his as it is of ETA and others for believing that an start-up importer can convert and sell vehicles that have never been designed to comply with U.S road regulations, safety standards, and not researching to see the real possibility of buying electric cars sometimes, for less than the cost of a scooter.
At the end, situations like this only hurt the EV's credibility. Looks like the future lies on the hands of those who either will build the cars themselves in the US or those who can afford to have hundreds ready for delivery before opening their mouths.
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wildgoosechase73 5:58PM (7/18/2008)
This of course highlights the struggle to produce a viable EV and that the big 3 are not immune as well. That's why it takes so long for them to move, they cannot risk their reputation on a failure.
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h2o2wine46 7:08PM (7/18/2008)
The preliminary hearing took place yesterday which was waived by Papp. Papp's case has been bound over for trial in Northampton County Court.
Papp's lawyer states that his client will make restitution to the victims' of his so-called venture.
However, Papp filed bankruptcy after he obtained money invested by individuals, not only in his EV ventures, but also in real estate investment schemes.
The bankruptcy was, eventually, dismissed by the Court.
Doing a Google search on the internet one can find posts by the victims of Papp's schemes. One area is Rip-Off Report.com and the word Preit
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