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After tripling the national deficit and watching unemployment surge to 10%, Barack Obama now believes that paying twice as much for a truck is good business.
The Smith Electric Vehicle manufacturer makes trucks that cost twice as much as normal delivery trucks. The company only survived this year because of a federal grant. It did not hire any new employees.
This, of course, counts as a success story for President Obama.
According to press releases from the Senate, Smith Electric was already planning on doubling their work force before they received the funds. It gets better. The CEO also planned on using the funds to reduce the purchase price of the vehicles, hence the company's stellar sales performance. Smith Electric received $10 million in August of 2009, then $32 million in March of 2010. So follow the math pattern and they will need $44 million by September 2010. The obvious question remains, how will Smith Electric sell cars when the funds run out and the sales price increases?
A little research and I found that not only is the government subsidizing Smith Electric, but they are also covering 40-60% of the cost for purchasers!
Nevertheless, Compass Group plans to buy about 30 Smith Newtons during the next year and could convert is entire 10,000-truck fleet to battery power if the pilot test proves successful.
One reason for Compass Group’s early investment in the new-to-the-U.S. technology is that several states in which Canteen operates are expected to receive federal stimulus grants to help electric-vehicle purchasers cover 40 percent to 60 percent of the incremental cost of the vehicles.
Obama cannot claim stimulus responsible for any of the 200 jobs Smith Energy had originally planned.
For those of you that like fact checking, here is a second source stating that Smith Electric planned on hiring 200 employees in three years at their Kansas City Plant. The article was in March 2009, well before any stimulus funds were in play.
A job cannot be saved or created if it was already planned on being created!