Phoenix Motorcars files for Chapter 11
by Jeremy Korzeniewski on Apr 30th 2009 at 7:47AM 
Phoenix Motorcars SUT - Click above for a high-res image gallery
Details are still very sketchy, but it appears that Phoenix Motorcars filed for Chapter 11 bankruptcy on Monday, April 27th. Not surprisingly, the global economic downturn is cited as one of the main reasons for the filing, but another major contributing factor was a recent $5.3 million arbitration apparently won by former drivetrain supplier UQM.
We've placed two separate calls with Phoenix Motorcars, which have so far gone unanswered. If we do happen to hear something back, we'll be sure to share it with our readers, but we're not holding our breath. UPDATE: Phoenix sent us a message.
Assuming this is all accurate, which does seem to be the case, we're not terribly surprised by the news. Still, we hope that the struggling automaker is somehow able to land on its feet. Thanks for the tip, Brian!
Gallery: AFVI Ride & Drive Phoenix SUT
[Source: Central District of California Bankruptcy Court - PDF link]
Reader Comments (Page 1 of 1)
jpm 1:44PM (4/30/2009)
who would have thought? .......
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Paul Sallmen 1:53PM (4/30/2009)
I had a sneaky feeling this was going to be an "I toldja so".
Bringing a car to market in the US or Canada costs astronomical amounts of money. Look how much trouble Tesla is having (and its owners have deep pockets!). Phoenix would've been far better off putting an electric drivetrain in an existing model, to avoid all the hassle of crash testing, etc.
This is why, write your American congressman or Canadian Member of Parliament to pass an "Innovative Automobile Act", allowing startups to sell a small number of environmentally friendly vehicles, but allow them to be exempt from crash safety standards. The buyer will sign a waiver upon purchasing the vehicle. It usually costs hundreds of millions of dollars to bring a new car to market. Clearly this is not business freedom - something a place like America is supposed to be based on.
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jpm 2:09PM (4/30/2009)
Excellent point. It is too difficult of a process. I guess all the scared soccer mom mentality has crept into everything in this country. Example: I flew southwest airlines last week, and the the first thing they say on the telecom upon boarding the plan, "hi i'm so and so, I am here for you safety". Oh really? Stfu. I don't need to hear that crap. You're here to get me a drink and bitch at me for having my tray table down while taking off and checking my seat belt every 10 minutes.
Anyways, back to your point. I agree entirely. This country makes no sense. We have seatbelt laws, crash tests, airbags for cars... but yet..... i can hop on my motorcycle with non of that and cruise around no problem. A new company should have to have their structural design audited, not spend millions and millions on crash tests.
tim 6:35PM (5/01/2009)
Those guys are a bunch of knuckleheads, I'm surprised they lasted this long. Bring a Korean truck not sold here, where are the parts? The dealers? I think Boshart pushed them into that truck because they were involved with that Korean mfgr. and they spent a lot on the crash testing, and I wonder how much money they actually wasted?
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Jim Dale 2:20PM (5/02/2009)
Phoenix was allowed big shortcuts on the crash-test requirements
because their initial target was merely to create fleet vehicles (not
for the average consumer) for the first few years.
They finished those tests years ago and the cost was no big thing
compared to everything else.
They aren't "knuckleheads" ... like some who don't know diddly but
think they do.
"Bring a Korean truck not sold here...?"
Damn right!
What do you expect them to do?
Be "knuckleheads" and blow millions designing & building their own
vehicle?
Or, use some one else's vehicle body already being sold in this
country?
Yea ... that makes a lot of sense.
Picture this example ...
Ford: "So, Phoenix ... I understand you want to use our Mustang body
to build a highly competitive EV which will soon make our ICE*
vehicles obsolete? Sure! We'd love to destroy the public's
identification of our classic historic Mustang vehicle body. We'll
even cut the price lower than SsangYong was asking you for their body
style which, for you, would have stood out and been totally unique to
the American eye!"
Who is willing to sell a competitor their body ... and at what
inflated price?
Why would anyone even want to buy a competitor's body in the first
place?
"Huh? That's a so-called Phoenix? But it looks just like my Mustang!!!
What kind of knucklehead would do something so confusingly stupid as
that?"
They needed a body that was affordable and not already seen in this
country.
* ICE: Internal Combustion Engine
imoore 3:33PM (5/04/2009)
I think there's more to the issue than what's listed here. The bodies were supplied by Ssangyong, who's own existance is hanging by a thread. If Ssangyong goes under, where else is Phoenix going to get replacements?
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