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Keep Your Eye on the Electric Sparrow
WC as Kato writes "Corbin Motors, the company that made the cute electric Sparrow car driven by Austin Powers in Goldmember, has gone into bankruptcy. SJ Mercury News has details of the dead bird..er Sparrow. Another electric car bites the dust!"
For four years, Corbin Motors represented Hollister's bid to join Silicon Valley.
In a factory in the farm town's budding tech park, the start-up was perfecting a cool new product, a three-wheeled $15,000 electric car dubbed the Sparrow.
Shaped and painted like giant jelly beans, the cars were so eye-catching that Hollywood star Mike Myers featured one in the movie ``Austin Powers in Goldmember.''
But now Corbin Motors is staggering under financial and legal crossfire. It has become a classic Silicon Valley start-up in a different sense than its backers had hoped: The product proved to be flawed, and the company's business plan never jelled.
The final chapters are playing out in federal bankruptcy court, where Corbin filed a Chapter 7 petition March 31.
A federal trustee is sorting through everything the company had -- from patents to furniture -- searching for valuables to sell so debts can be paid.
Peering over his shoulder and poking around on their own are numerous attorneys who represent those debtors, whom Corbin collectively owes up to $10 million.
Among those who bought shares in what was marketed as a company preparing to make an initial public offering were Hollister residents, spurred on by a mix of civic pride and excitement triggered by seeing Sparrows whizzing around town.
``Of course it was a feather in our cap,'' said Al Martinez, executive director of San Benito County's economic development agency.
He was not an investor but supported the company as the county's top official for attracting and retaining business.
``I wished them all the luck in the world,'' he said.
If there is a silver lining in the bankruptcy, it is that Corbin sold around 300 Sparrows, many purchased by enthusiasts who still chat on a Yahoo message board, exchanging advice on how to repair, improve and insure their Sparrows, officially classified as motorcycles.
Despite this enthusiasm, the Sparrow turned out to be, essentially, a novelty item. It was shaky on its three wheels, and batteries made it impracticable for trips greater than 60 miles. A 1,000-pound three-wheel motorcycle surrounded by a shell is not safe on freeways where 6,000-pound sport-utility vehicles travel at 75 mph.
Even many Sparrow fans criticize the men who made the machine.
``When people ask me where my Sparrow was made, I can't point them back to Corbin Motors, because even its Web site is down,'' said Ed Thorpe, who uses his Sparrow to commute from Alameda to San Jose.
``They didn't make a better version of the Sparrow. There are people who paid for cars they never received. All this isn't because of impaired products, but mismanagement of how they assembled the vehicles.''
Father-son team
Michael and Thomas Hanagan, a father and son team, founded Corbin Motors in March 1999. Mike, an electrician, came up with the idea for the Sparrow.
He is also an experienced businessman. For the past two decades, he has headed Corbin-Pacific, a motorcycle seat and accessory maker in Hollister.
Tom Hanagan worked at Corbin-Pacific before assuming the helm of Corbin Motors. In the Sparrow, the Hanagans figured they had a product electric-car lovers couldn't resist:
It was for sale, not lease, like other electric cars.
It was a motorcycle, not an automobile, so it could use carpool lanes.
It revved up to 65 mph, so it was good for freeways.
It went 60 miles on a single charge, so commuters liked it.
It was compact, making it easy to park.
And its unique shape turned heads.
Tom Hanagan declined to be interviewed for this report but in court briefs, he said the trouble started in 1999, when Corbin acquired MCM Engine Technologies of Costa Mesa. Corbin assumed MCM's debt and hired many of its employees.
After arriving in Hollister, ex-MCM engineer Ove Hasselberg took a Sparrow out for a spin. When he rounded corners, the Sparrow tipped onto two wheels. During brake tests, a Spa