ZENN’s Canadian approval overblown
Scratching my head today as I look at the 5 per cent jump in the share price of ZENN Motors, the Toronto-based maker of low-speed electric vehicles. I guess the market is excited about the announcement today that ZENN vehicles have been cleared for sale in Canada by Transport Canada. Cleantech.com has the story here.
I’m perplexed because it’s like jumping a hurdle only to reach a wall. It’s like a wireless carrier being able to sell Apple’s iPhone in Canada but not have it operate on its network. The only province in Canada that currently lets low-speed electric vehicles on the roads is British Columbia. Ontario, a key market, continues to drag its feet. Meanwhile, ZENN has an enormous U.S. market to sell into — all those gated communities and urban dwellers represent a large chunk of potential purchasers. Even if Canadians could truly drive a ZENN car in Ontario, the market is somewhat limited compared to the United States.
Don’t get me wrong. I’d love to see these little cars zipping around the streets of Toronto. I’m angry at the Ontario government for not moving swiftly on this front. I also think ZENN’s LSVs play an educational role around the idea of plug-in cars — both for the public and for utilities that need to understand the impact on the electricity system. But come on, today’s announcement doesn’t justify the excitement. ZENN’s financial success will be proven in the U.S. market — Canada is a nice have that won’t have much of an impact on the larger picture.
Tyler Hamilton is senior energy reporter and columnist for the Toronto Star, Canada's largest daily newspaper. In addition to this Clean Break blog, Tyler writes a weekly column of the same name that discusses trends, happenings and innovators in the cleantech market. This blog is a personal project started in April 2005. It is not an official blog of the newspaper. Tyler can be reached at tyler@cleanbreak.ca
November 6th, 2007 at 5:45 pm
The Cleantech story says Ian Clifford, Zenn’s CEO, is meeting with EEStor in Austin. Gotta hunch that’s what bumped Zenn’s stock.
November 6th, 2007 at 5:53 pm
Wow… lunch in Austin, now there’s a reason to get excited.
November 7th, 2007 at 1:51 pm
Gemstone Cafe’s right at the end of the EEStor driveway in Cedar Park. ‘Bout 30-35 other eateries at the first intersection. No need to go Downtown. Plenty of good food right close to that ‘ol prototype that’s just a hummin’ and a buzzin’ away there on the workbench back at the shop.
November 7th, 2007 at 4:32 pm
Chuck Yeager drawl. But do you have the right stuff?
November 8th, 2007 at 10:28 am
(little behind the scene story for you Tyler) to get Clifford to attend the green living show last year was no easy feat (even though GL’s chair (and InvestEco owner) was an early investor in Feel Good Cars… . but once Al Gore was in, Ian brought along some Zenns… Then AL was talking with Ian, and Dalton came by, and Al got way into Dalton’s face about how these are made here (well Quebec), and the company is based here, and yet they are not allowed on the roads? Then the former VP pushed the Premier to “do something about this” and the Dalton said he would…. so you never know, it may very soon get Ontario approval (not that Gore has any power other than to shame McGuinty). but i’d say that is more promising than a lunch in texas…
November 8th, 2007 at 11:11 am
I wrote that story back in June:
EV maker may get wish as McGuinty sees light
Toronto Star
19 June 2007
The Toronto Star
B01
ZENN Motor Co. may be headquartered in Toronto, but the maker of electric vehicles can’t sell its product in Ontario.
That could soon change.
Premier Dalton McGuinty told the Toronto Star yesterday he’s intent on amending outdated legislation that forbids the use of low-speed electric vehicles in the province. He said he didn’t want the current rules to be an “impediment” to what’s viewed as an environmentally friendly transport technology.
“I’m sure there were good reasons at one point in time to prevent electric cars from being on Canadian roads, but we’ve got to find a way to ensure that our regulations don’t become an impediment from doing what’s right for the environment,” said McGuinty.
He added that it makes no sense for a local company to produce a car that can’t be driven in its home province but is widely accepted – and sold – throughout the United States. “I’m going to allow them to drive these things in Ontario.”
It’s unclear, however, how quickly he plans to move. McGuinty and Transportation Minister Donna Cansfield are expected to meet today with officials from ZENN Motors to talk about rule changes. The premier said he also wants to convince the company to move its vehicle assembly facility from Quebec to Ontario.
Ian Clifford, chief executive officer of ZENN (Zero Emission No Noise), credited former U.S. vice-president Al Gore for drawing McGuinty’s attention to the issue during a lunch in late April during the Green Living Show in Toronto.
Gore asked Clifford how sales of his electric cars were doing in Canada. “I told him we can’t sell them here, and he said ‘What? That’s ridiculous’,” recalled Clifford, adding that he explained to Gore how provincial legislation prohibited use of the vehicles on public roads, mostly for safety reasons.
“Gore took me by the shoulder and marched me over to the premier and right in front of McGuinty’s face, said, ‘Premier, do your part, it’s crazy that you can’t drive these electric cars in Ontario.’ McGuinty said ‘Let’s set up a meeting’.”