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Electric Car Battery Maker A123 Systems, of Obama-Stimulus Fame, Files for Bankruptcy

Green Lifestyle  (tags: Bankruptcy, Obama Stimulus, Picking Losers, Obama, Wasting Public Money, Barack Obama, Wasting Taxpayer Money, President Obama, Wasting Borrowed Money, Wasted Stimulus, Disregard for Free Markets, Failure of Central Planning )

- 2168 days ago -
Another day, yet another example of what happens when the government tries to "create" jobs based on its own ideological-political ambitions rather than allowing the free market to function based on efficiency and consumer choice.


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Paula M (39)
Tuesday October 16, 2012, 11:55 am
From the article:

Another day, yet another example of what happens when the government tries to “create” jobs based on its own ideological-political ambitions rather than allowing the free market to function based on efficiency and consumer choice.

This latest government-sponsored (read: taxpayer-sponsored) green-energy bust comes in the form of A123 Systems, a manufacturer of lithium-ion batteries for electric cars. The company received almost $250 million in grants (which pretty much means the feds cut the battery-maker a check, and if the company does indeed go bankrupt, that cash is gone) from President Obama’s stimulus in 2009, not to mention over $140 million from the state of Michigan in the form of tax credits and subsidies. Via Bloomberg, A123 failed to make a debt payment that was due yesterday:

"The company listed assets of $459.8 million and debt of $376 million as of Aug. 31 in Chapter 11 documents filed today in U.S. Bankruptcy Court in Wilmington, Delaware. Chapter 11 is the section of the Bankruptcy Code used by companies to reorganize. …

"A123, which received a $249.1 million federal grant in 2009 to build a U.S. factory, needed a financial lifeline after struggling with costs from a recall of batteries supplied to Fisker Automotive Inc., the plug-in hybrid luxury carmaker. A123 announced in August that it was working on a deal with Wanxiang Group Corp., China’s largest auto-parts maker, for financing in exchange for a majority ownership stake."

. (0)
Tuesday October 16, 2012, 12:22 pm
With the previous article, the man cannot catch a break. His advisers clearly don't know what they are doing other than using our money (nearly a billion) in investments that are killing us.

Elle B (84)
Tuesday October 16, 2012, 12:56 pm

Talya H (10)
Thursday October 18, 2012, 5:02 pm
Thanks for the share!

Lloyd H (46)
Friday October 19, 2012, 6:52 am
Paula M., back again with the burning bag of elephant crap. Let see an inaccurate article, A123 Systems has been purchased by Jonson Controls AN AMERICAN COMPANY that also manufactures batteries. This post is based on a blog post written by Erika Johnsen who has Obama Derangement Syndrome so bad her main claim to fame, other than being a woman who against her own best interests supports Romney, writes the "Anti-Obama Blog" on Hot Air an extreme reich-wing site created by Michelle Malkin and now owned by a, Creationist Anti-Science Christian Taliban of America media net-work that has never met a fact it could not lie about, just like Malkin and Johnsen.
Nice try but just another lie from the Romney/Ryan lie machine.

Paula M (39)
Friday October 19, 2012, 3:43 pm
The most accurate title, Lloyd H, is "A123 Systems Declares Bankruptcy" because that is exactly what they did. It is nice that an American company purchased some of its assets; I hope it can benefit from them and that the purchase price will go to pay A123's creditors a portion of what they are owed. It would be nice to know whether American Taxpayers will recoup the money the Obama Administration gave to the company; my guess is that they will not.

I get that you hate conservatives like Erika Johnsen and Michelle Malkin and want to be able to disbelieve every fact they cite so that you do not have to honestly respond to their arguments. That is a very human instinct. However, it is also a trap that a well-grounded thinker must learn to avoid. I generally try to consider the facts and arguments of those with whom I disagree politically, even if I consider them wrong in the main, understanding that "even a stopped clock is right twice a day."
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