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Feds to pause electric vehicle incentives
(www.nationalobserver.com)
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As I alluded to in a comment just a moment ago, there's actually a really vibrant community/cottage industry world wide taking the motor and the internal drum from old washing machines and turning them into hydroelectric plants, capable of powering off grid homes quite effectively for as much of the year as the water is flowing in the area.
I could absolutely see what OP was theorising happening with only a little bit of government support. The motors and batteries could easily be sold on as part of a kit, and the rest of the car recycled where possible.