Electric Car Battery Maker A123 Systems Files Bankruptcy

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posted on Oct, 16 2012 @ 04:26 PM
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Another green company helped by the government to the tune of 255 million dollars (249 Obama, 6 Bush) has filed for bankruptcy.

My thought's on these failures are the failure of the current administration and Congress to force the cap & trade agenda, which would have given these green company failures, a better playing field..

Having failed in passing those measures, doomed the recipients of that huge green stimulus..

Just an uneducated guess from a fellow member, my perception could be totally wrong, however, it is still disappointing that in our current economic times, that our government has wasted so much in so short a time..



www.bloomberg.com

A123 Systems Inc. (AONE), the electric car battery maker that received a $249.1 million federal grant, filed for bankruptcy protection and said it would sell its automotive business assets to Johnson Controls Inc. (JCI)

The filing may fuel a debate over government financing of alternative-energy and transportation businesses. Federal grants and loans to companies including A123, Fisker Automotive Inc. and Tesla Motors Inc. (TSLA) have drawn scrutiny from congressional Republicans following the September 2011 bankruptcy filing of solar-panel maker Solyndra LLC two years after it received a $535 million loan guarantee from the U.S. Energy Department.




posted on Oct, 16 2012 @ 04:34 PM
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It is pretty sad when people.are.hurting.so.bad financially and then.you look
at the way congress.and potus throw out money putting the.debt on someone else
to.fill their.buddies.pockets!!!!

There are many * solyndras* this.is another one there are many more.

I call.what these crooks.did *taking the money and running*



posted on Oct, 16 2012 @ 04:38 PM
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reply to post by JacKatMtn
 


A song to commemorate this monumental event.....




Obama's green track record is not looking good.

Des


edit on 16-10-2012 by Destinyone because: (no reason given)



posted on Oct, 16 2012 @ 04:39 PM
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Batteries for electric cars are crazy expensive. $3000-10,000 for a battery makes electric cars too expensive to own. Until battery technology gets a whole lot better it is a waste of money to fund. We are at least 10 years away from a viable battery that makes sense for the common consumer to take a chance on. Manufacturing batteries actually pollutes more than a gasoline powered car does given the batteries way too short life. Not to mention the pollution created charging them every trip you make. Electric cars are still in the fairytale stages. If the treehuggers really want to clean up exhaust emissions we should go heavy into natural gas powered vehicles. I guess they don't like natural gas because it has the word gas in it. It pollutes 1/10th of gasoline though. I say drill drill drill and use 5% of every barrel to build the infrastructure for natural gas vehicles and research for batteries that last/charge faster and last longer. Natural gas burning vehicles require less frequent oil changes, fewer engine repairs and pollute far less.



posted on Oct, 16 2012 @ 04:52 PM
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Here's an article that says a lot.

A wee bit biased perhaps, but many truths and consequences are outlined.


October 16th, 2012

Earlier today I posted on the layoffs announced by wind turbine manufacturer Vestas and the electric car battery manufacturer A123.

These two companies are only the tip of the iceberg. What they represent is one of byproducts of cargo cult economics, that is, when venture Marxists set industrial policy to the benefit of rent-seekers and corporate cronyists.

To be clear, we have flushed billions of dollars we don’t have down the crapper pursuing a will 0’ the wisp in the form of green jobs and green energy. This is not to say the goal is laudable, it is. But good intentions do not compensate for squandered wealth, squandered opportunities and squandered lives.

The root cause of this mess is the Obama regime. It has waded into a marketplace it neither understands nor likes and has tried to develop a new industry out of whole cloth. The language boggles at attempting to describe the hubris necessary to undertake this endeavor. To add insult to injury, in a large number of these cases, over 71% of the cases if one want’s to put a number on it, the winners just happened to be major Obama donors and supporters......

The Pigs At Obama’s Green Energy Trough
 


Links in the article....

Oct 16, 2012

Yesterday the Danish wind turbine manufacturer, Vestas, announced it had laid off 800 US workers and as many as 1600 might be laid off by the end of the year.

Danish wind turbine maker Vestas said the impending expiry of a U.S. tax credit had exacerbated a fall in orders for next year, forcing it to make more than 800 job cuts in the United States and Canada so far this year.

With the Production Tax Credit (PTC) on renewable energy set to expire at the end of the year, Vestas Wind Systems A/S had previously said it could be forced to lay off a total of 1,600 employees in North America if the scheme is not renewed.

Vestas, which is battling the effects of government austerity measures in various countries, said the 800 staff cuts so far this year represented 20 percent of its North American workforce.

This is an emerging trend in companies whose business model is based on rent-seeking under Obama’s “green energy” boondoggle, not producing a product anyone really wants.....

Another of Obama’s Cargo Cult Companies Fails
 


Published: May 24

Despite a growing backlash from his fellow Democrats, President Obama has doubled down on his attacks on Mitt Romney’s tenure at Bain Capital. But the strategy could backfire in ways Obama did not anticipate. After all, if Romney’s record in private equity is fair game, then so is Obama’s record in public equity — and that record is not pretty.

Since taking office, Obama has invested billions of taxpayer dollars in private businesses, including as part of his stimulus spending bill. Many of those investments have turned out to be unmitigated disasters — leaving in their wake bankruptcies, layoffs, criminal investigations and taxpayers on the hook for billions. Consider just a few examples of Obama’s public equity failures: .....{see the whole long list}

Forget Bain — Obama’s public-equity record is the real scandal
 


There's nothing wrong with alternative energy investment.

However, when corruption is involved it simply won't work.

They need to keep the "Political Green" out of the picture !!
 



posted on Oct, 16 2012 @ 04:53 PM
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here's an example of how they play the due facce game.....


Harry Reid’s state of Nevada has received stimulus money for two green energy plants which filed for bankruptcy after receiving federal loan guarantees under the stimulus program.


At the time these loans were awarded to these two companies it was well known the companies were in financial trouble and were expected to fold yet the money was awarded anyway in what appears to be an obvious instance of crony socialism designed to reward Democrat Senate Majority Leader Harry Reid for his efforts to promote Barack Obama’s green energy initiative.


But wait, there’s more as can be seen here:

ENN is a Chinese based solar panel plant which is looking to build a $5 billion plant in, you guessed it, Nevada. Clark County officials approved the purchase of land in Nevada for the sum of $4.5 million even though the land was valued at almost $40 million.

Harry Reid then pressured NV Energy, the largest power company in Nevada, to become ENN’s first customer. Did he do this to ensure the company would be able to build in his state, or is there some other reason Harry Reid took such a vested interest in the company?.....

Harry Reid’s son involved in a Chinese solar panel company that received a sweetheart land deal in Nevada, while Harry Reid pressured NV Energy to become a customer



posted on Oct, 16 2012 @ 05:06 PM
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So the question has to be asked, what happens to the car owners when it comes time to replace their A123 battery? Are they left with a dead car that can only be sold for scrap value?



posted on Oct, 16 2012 @ 05:10 PM
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Originally posted by Ahabstar
So the question has to be asked, what happens to the car owners when it comes time to replace their A123 battery? Are they left with a dead car that can only be sold for scrap value?


Quite frankly I don't think A123 Systems Inc. really gives a crap.
Any warranty will be null and void.

Who got suckered, the people who bought from these crooks.



posted on Oct, 16 2012 @ 05:11 PM
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Originally posted by Ahabstar
So the question has to be asked, what happens to the car owners when it comes time to replace their A123 battery? Are they left with a dead car that can only be sold for scrap value?


Good question.

GM has a warranty set up


After all this time its pretty amazing to hear GM’s final decision on the Chevrolet Volt’s battery warranty. Eight years or 100,000 miles.

We have known for a long time that GM was aiming towards ten years/100,000 miles as a goalpost, though using that figure specifically as a warranty was never confirmed.

This warranty is being described as the longest-lasting GM offers on any of its products, illustrating the very high level of confidence the company has in its extensively engineered and managed lithium-ion battery pack. It exceeds by three years the warranty GM offers on its powertrains.

The warranty coverage includes all 161 components of the Volt’s battery, its charging system, thermal-management system and components of its electric drive, and it is transferable to other vehicle owners. GM confirmed that the 400 pound pack houses 288 cells in nine modules.............

Chevrolet Volt Battery Warranty Details and Clarifications

 


Edit to Add.....
Taxpayer-Funded A123 May Get a Chinese Bailout

edit on Oct-16-2012 by xuenchen because: (no reason given)



posted on Oct, 16 2012 @ 07:33 PM
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This goes beyond car batteries - dewalt buy a123 cells for there battery packs for tools.

For the last 3 years I have been using starter batteries for my motorcycles hacked together from cells I bought of theres. Unlike Lipo they have a usable cycle life and are stable enough not to pose a fire hazard. Also they weigh a mere 1 pound total unlike my 9 pound SLA battery that it replaces.

Frankly they are the most stable and durable in there class of materials. Our investment has moved the industry forward and should not be seen as a waste.

Unfortunately the problem really comes down to giving anyone 250 million and how they handled the dispursion of it unlike Telsa and Fisker who are both continuing to gain market share.

Another factor is that it used to be 6 years ago that the same cells were 100 each now they are down to 6 a piece with some cheaper manufacturers while a123 because of there quality are a bit more.
edit on 16-10-2012 by circuitsports because: (no reason given)



posted on Oct, 17 2012 @ 03:25 AM
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Let the free market choose the winners and losers , govts choose winners that help them get elected, and if
they lose the plebs pick up the tab.



posted on Oct, 17 2012 @ 07:52 AM
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I've just been watching the video of the guy who's made a bike of cardboard, all done in his shed.

Then you compare that to a company like this that's eaten it's way through $250 million to make some batteries.

The question people should be asking themselves is how on earth did they manage to spend so much money?

This is the problem with a lot of companies, but especially those funded by government. It's just a big gravy train - there is no way they should have ever spent anywhere near that amount.

I can just imagine what they were like - they got all the money and so bought huge premises, employed far more people than they really needed, paid the guys at the top far more money than they were worth, and when the free money dries up, shut it down.



posted on Oct, 17 2012 @ 08:15 AM
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reply to post by jimmiec
 


Just saying this is possibly wrong.. why 3 words.. EV1... you should look it up sometime, great documentary... interesting insight into what it was and what killed it...

Actually let me make it easier for you..

Who Killed The Electric Car
edit on 10/17/2012 by ThichHeaded because: (no reason given)



posted on Oct, 17 2012 @ 09:39 AM
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They are outrageously priced, but no one wants to know you can run them on free or recycled old regular batteries.


CBC evening news (TV) - Dead Battery Electric Vehicle

Just google Rob matthies.

From what I can gather he is using something like this for recharging them.


Run your Car on FREE DEAD BATTERIES -for only 30 cents a Day

www.dailymotion.com...
Rob Matthies' REVIVED BATTERIES re-tested after 4 years' use

battery-club.blogspot.ca...

He does swaps of the revived batteries for 75 dollars a year for scooters or vehicles.

The point of this post is we're being sold an industry that is thwarted from its creation, so that no one can afford to or wants to drive clean and ethical.

But there are solutions all over. I personally like the revived batteries.

And instead of buying electric vehicles or Browns Water, Salt Water, backyard mechanics could be specialists at "modding them", so everyone could drive clean and cheap vehicles.



posted on Oct, 17 2012 @ 10:00 AM
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It seems like everything electric is made to be problematic and break down, even their scooters, and they need to be fixed.


Solutions to Ego-II Electric Scooter Problems for 10 Year Usability Shared by Rob Matthies

I forsee taking your old junkers and modding them. And this would be a thriving business. Time for humanity to get off its knees.


PREVIEW Vancouver Gadgeteer Rob Matthies with North Vancouver Mayor Darryl Mussatto

This Vancouver Inventer even has a Vancouver mayor excited!

We've been sold the high end of the stick, and OIL still reigns supreme. I start yawning whenever I drive out, even in the morning and nearly fall asleep at stop lights, and can't stand windows up.

It's criminal, and they want to sell their overpriced machines so only the very wealthy can be karma free.

For the millions sunk into that company, which retailed to the wealthy, think of the real solutions, the mods than could have transformed every vehicle.

edit to add:

www.evalbum.com...


A new lead acid battery pack for this pickup truck would cost $3,500 or so. A new lithium battery pack for this pickup truck would cost $40,000 or so. Does this explain why only the the 'Tom Hanks' amoung us could afford the $90,000 eBox electric car?

So, why do lead acid batteries cost more than gas, you ask? In the words of some EV old-timers, "Batteries never die, they are murdered."

What is the weapon used to kill batteries, you ask? Its the battery charger, in my opinion. From what we could see in our electric pickup, the early death of batteries was caused by the Zivan battery charger -- the brand that is used by the vast majority of electric vehicles
edit on 17-10-2012 by Unity_99 because: (no reason given)



posted on Oct, 17 2012 @ 11:17 AM
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I mean the way this Bad Boy Electric Battery Industry is run, seems to be all about, deliberately failing, overpricing, and making the technology as monstrous as possible. So I kind of suspect that they're bought off from the start, working for the Oil Industry Monopoly, and the monies sunk in were their wages to pull of this scam on the public.



posted on Oct, 17 2012 @ 01:03 PM
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When the Super capacitor is perfected electric cars will be viable. Until then they pollute more than a conventional gas powered engine. Natural gas is the most common sense approach at this point in time. They burn so clean that engine parts last 1 million miles. Just the pollution generated by cutting manufacturing of engine parts alone makes it worth it. I have a hybrid electric car in the shop right this minute. It needs a starter motor (switch's the transmission from gas to electric) and battery. Grand total on repairs 6k.



posted on Oct, 17 2012 @ 07:09 PM
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Originally posted by JacKatMtn
Another green company helped by the government to the tune of 255 million dollars (249 Obama, 6 Bush) has filed for bankruptcy.

My thought's on these failures are the failure of the current administration and Congress to force the cap & trade agenda, which would have given these green company failures, a better playing field..

Having failed in passing those measures, doomed the recipients of that huge green stimulus..

Just an uneducated guess from a fellow member, my perception could be totally wrong, however, it is still disappointing that in our current economic times, that our government has wasted so much in so short a time..



www.bloomberg.com

A123 Systems Inc. (AONE), the electric car battery maker that received a $249.1 million federal grant, filed for bankruptcy protection and said it would sell its automotive business assets to Johnson Controls Inc. (JCI)

The filing may fuel a debate over government financing of alternative-energy and transportation businesses. Federal grants and loans to companies including A123, Fisker Automotive Inc. and Tesla Motors Inc. (TSLA) have drawn scrutiny from congressional Republicans following the September 2011 bankruptcy filing of solar-panel maker Solyndra LLC two years after it received a $535 million loan guarantee from the U.S. Energy Department.


I agree. We invest in a more sustainable use of energy And fail to follow up on establishing market conditions that would make these companies competitive. A real fine tuned effort, we all agree, has the best chance for success.

One would think those dollar amounts mentioned would have a greater economic impact. But with the high cost of equipment and restricted cash flow, millions in the hundreds, don't go too far.
edit on 17-10-2012 by okyouwin because: content



posted on Oct, 18 2012 @ 05:42 AM
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reply to post by JacKatMtn
 


Fox reported this either on Monday or Tuesday. When I heard the story I thought Romney should use this in the Town Hall debate. I guess no one on his staff brought it up to him. Pity.



posted on Oct, 18 2012 @ 06:34 AM
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green company's by all means shouldn't thrive for only one reason and that is the filthy rich can be even more filthy rich.

the "natural gas" is working by all means but the electric vehicle have been here since early 19th


and if you humans don't believe Electric Vehicles work do a web search (youtube)

kay-o? get real don't underestimate the humans technological progress.



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