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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.
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
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
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
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
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?
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?
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
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
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.