And Zenn there were none

Toronto-based Zenn Motor Co. has thrown in the towel here after learning the province would insist on safety features – such as better seatbelt anchors, stronger side doors and more frontal-impact protection – that would require the company to redesign its low-speed electric car.

Zenn will continue to build cars in Quebec for sale there and in the U.S., but won't retool for Ontario.

On its own, this isn't a major deal. The car's top speed of just 40 km/h restricts it to a minor role on the electric-vehicle stage. Across North America, it sells in the mere hundreds. Zenn's future hinges on the uncertain progress of secretive Texas-based EEStor Inc., which claims to be developing a revolutionary electricity storage system – a step beyond any battery.

Still, requiring the car to meet the same standards as those that go three times as fast on highways it would never see, doesn't make sense. And it raises, again, the question of Ontario's and Canada's roles in the burgeoning electric car industry.

Last week, federal Industry Minister Tony Clement re-announced (from the 2008 budget) a $145 million fund for automotive R & D. It's to go not only to battery development but also to alternative fuels, computer controls and seven other areas of technology.

The industry consensus is that it's a nice start but far too little to ensure a significant role in developing the new world of vehicles.

Money, as always, talks, and while this country whispers, the United States and others shout. Electric carmakers are lining up for a piece of the action. They won't all succeed, but those that do will be south of the border, not here.

Most recently, the Norway-based company developing the all-electric Think car announced it's seeking a research and manufacturing site in the United States for its North American operations. This month, it applied for some of the $25 billion (U.S.) that Washington is offering to support electric vehicles, and it's talking with eight states that have incentives and idle assembly plants.

Britain and other European countries have announced massive investments in battery and electricity-supply technology. Recently, Chinese officials told The New York Times their country aims to take the world lead in hybrid and fully electric cars within three years, with annual production capacity of 500,000 vehicles.

General Motors is seeking $2.6 billion (U.S.) from Washington for the Chevy Volt plug-in hybrid: Since the aid must stimulate American production, that car – expected to survive even if GM goes into bankruptcy protection – is to be assembled in Michigan.

South Korea's LG has scored the contract to make batteries for the Volt, beating a U.S. rival. That choice, which has raised the ire of many Americans, proves the importance of state support, since LG gets plenty from its home government.

In Canada, a cumbersome collection of industry officials, bureaucrats and environmental advocates continues to work on an "Electric Vehicle Technology Roadmap," with a final report expected this fall. That group has already decided this country should shoot for modest sales of 80,000 all-electric cars by 2018. Its report will likely recommend bigger incentives for the industry and consumers.

That's essential not only to attract manufacturers but also to keep existing businesses here, says Al Cormier, of the advocacy group Electric Mobility, and a Roadmap participant. "If we don't keep pace with the level of support, there's a good chance some Canadian companies will move south."

Ottawa and Queen's Park can't say they weren't warned.

Peter Gorrie is Wheels' environment columnist. He can be reached at pgorrie@sympatico.ca