Trailblazing Israeli Electric Car Company to Close
By JOSEF FEDERMAN Associated Press
JERUSALEM May 26, 2013 (AP)
It was an audacious idea that came to symbolize Israel's self-described status as "Start-Up Nation," a company that believed it could replace most gasoline-powered cars with electric vehicles and reduce the world's reliance on oil — and all within a few years.
But it all came crashing down.
The company, Better Place, started out as a source of pride and a symbol of Israel's status as a global high-tech power, but it suffered from a local brand of hubris and overreach. On Sunday, it announced plans to liquidate after burning through almost a billion dollars and failing to sell its silent fleet of French-made sedans to a skeptical public.
"This is a very sad day for all of us. We stand by the original vision as formulated by Shai Agassi of creating a green alternative that would lessen our dependence on highly polluting transportation technologies," the company said. "Unfortunately, the path to realizing that vision was difficult, complex and littered with obstacles, not all of which we were able to overcome."
It capped a stunning fall from grace for Better Place and its founder Agassi, a former high-tech whiz kid who sought to change the world by building a revolutionary network of battery-swapping stations.
Agassi, 45, believed that in an era of global warming and rising oil prices, environmentally friendly electric cars could be the wave of the future, if only a way could be found to overcome the limited range of their batteries.
Better Place offered an elegant solution. The vast majority of travelers who commute short distances could plug in their cars at home or work each day to keep their batteries recharged. For longer distances, customers could stop at the swapping stations, remove their used battery and replace it with a fully charged one in a matter of minutes.
Agassi's native Israel was chosen as the company's main laboratory, and a network of several dozen stations was installed, offering travelers nationwide coverage.
Israel was a particularly ideal testing ground, thanks to high fuel prices, a supportive government, its relatively small size and dense population centers. The cars were expected to appeal to Israel's tech-savvy population, and the ability to weaken the political clout of its oil-rich enemies was an added plus.
The project won the support of President Shimon Peres, received generous financial incentives from the Israeli government and an endorsement from former President Bill Clinton.
Agassi, a former top executive at software maker SAP, became a celebrity CEO. He was a central character in "Start-Up Nation," a best-selling book about Israel's high-tech industry, he was named to Time Magazine's list of the 100 most influential people in 2009 and became a fixture at international conferences such as the World Economic Forum in Davos, Switzerland.
In roughly five years, Better Place raised some $850 million from investors like General Electric Co., HSBC Holdings PLC and the European Investment Bank. Israel Corp., controlled by billionaire Idan Ofer, was the largest shareholder. Agassi persuaded French car maker Renault to make a customized electric version of its Fluence sedan.
Agassi promised to 5,000 of his cars on Israel's roads by the end of 2011 and predicted that a majority of cars sold in Israel would be electric by 2016.
1 abcnews.go.com
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