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Electric car battery catches fire after crash test

Published: November 12, 2011
By: Scott Mikules

Well there really is no true ‘safe’ car on the road, as logic would have it along with the millions of other factors that can come into play. The incident took place in June when the Chevy Volt’s lithium-ion battery caught fire after being crash tested at an agency facility–but didn’t ignite until several weeks after the test.

Still, news of the fire and subsequent investigation, first reported by Bloomberg News, sent shares of G.M. down as much as 3 percent on Friday. The stock closed down nearly 1 percent, while the broader market gained about 2 percent.

The market reaction to the battery fire highlights the unique set of issues that automakers, regulators and emergency personnel must navigate as plug-in vehicles become more common.

While only a few are available for sale now, many more are on the way, and their novelty means even isolated problems related to their safety or reliability can affect how consumers and investors view them. The government has poured billions of dollars into programs aimed at promoting battery and electric-car manufacturing in the United States.