Another Obama Taxpayer-Funded Eco-Scam Goes Bankrupt

A123 Systems fails.

Electric car battery-maker A123 Systems has filed for bankruptcy, according to Bloomberg News.

The company was promoted heavily by President Barack Obama and Michigan politicians and received hundreds of millions of dollars through federal “stimulus” and Michigan Economic Development Corp. programs. Earlier this year, Michigan Capitol Confidential uncovered a video of these politicians promising “hundreds” and “thousands” of jobs – the video was eventually taken down by the MEDC but saved by CapCon.

Despite known financial trouble, just a few months ago A123 awarded sweetened severance packages to its top executives. From CapCon:

“Vice President and General Manager of Energy Solutions Group Robert Johnson, for example, would see his severance increase an extra $200,000 from the agreement, boosting it from $400,000 to $600,000. Johnson’s base salary is $400,000 this year, up 21 percent from his 2011 base salary of $331,250. That raise is consistent with a pattern of large pay increases top executives at A123 Systems have received.”

In sum: The president of the United States, Michigan’s former governor, the state’s two U.S. senators and the U.S. Secretary of Energy promised thousands of jobs from a company that in a mere two years went bankrupt. Despite a bankruptcy or buyout predicted by outside observers, the company continued to reward its top executives while laying off most of its workforce.

Gawd only knows how many more of Obama’s taxpayer-funded eco-scams are still out there and ready to collapse.

 

Related post:

http://sfcmac.wordpress.com/2012/10/11/behind-obamas-green-agenda/

5 thoughts on “Another Obama Taxpayer-Funded Eco-Scam Goes Bankrupt”

  1. A123 bankruptcy was an expected exit strategy well-planned ahead.
    The company’s batteries actually work quite in DeWitt power tools and
    they are well suited for plug-in hybrid vehicles. Of course, they can provide neither
    the driving range nor the recharge time necessary for fully electric vehicles
    (no commercially made battery can). A123 technology funded by US taxpayers has been transferred to a Chinese company BYD before the bankruptcy, so it lives on.
    Also, Dow-Kokam , Johnson Controls and Valence Technology took it up to the next level. A123 was a well-thought out scam that started with infringement on Valence Technology patents (http://en.wikipedia.org/wiki/Lithium_iron_phosphate) and ended
    with defaulting on multimillion $ loans. As usually, the people on top of this scam end up with million of dollars, but the company workers and we (taxpayers) are picking up the bill.

    1. H. Keder,

      The biggest part of this scam was the fact that it, and dozens of other “green” eco-scams were abetted by Obama with billions of taxpayer dollars. They wouldn’t have been able to get the money otherwise.
      SFC MAC

  2. Day after I made my posting here, the Heritage Foundation put together a more extensive list of Obama’s business failures in the green energy realm. A full 36 actually that burned through massive amounts of tax payer dollars in his 3 years.

    http://blog.heritage.org/2012/10/18/president-obamas-taxpayer-backed-green-energy-failures/

    Obama is truly a failure on any scale. So, with all this proof out there where Romney worked with private money on 77 companies in 8 years only seeing 17 requiring bankruptcy restructuring. Obama’s failures go far beyond in less than half the time. And far more people lost their jobs under Obama in these failures.

    Obama was given the highest office and trillions of dollars in tax money and he was a complete failure. A true liberal.

    1. OTR,

      I just bookmarked that SAME page yesterday that showed the compiled list. I was going to post that today as well. Great minds think alike!

      SFC MAC

  3. Keep in mind, it is Bush’s fault after all. Just taking a quick look around….

    Solar Trust of America: FAIL! – Filed Bankruptcy in Oakland, CA, April 3, 2012

    Bright Source: FAIL! – Bright Source warned Obama’s Energy Department officials in March 2011 that delays in approving a $1.6 billion U.S. loan guarantee would embarrass the White House and force the solar-energy company to close. Bright Source lost billions of dollars but is getting more money to keep trying. Can you say, “This isn’t working Mr. President?”

    Solyndra: FAIL! – Obama gave $500,000,000 (that’s a HALF BILLION!) in taxpayer money to Solyndra who shut its doors and laid off 1100 workers in August 2011 after billions in losses due to failure to make a solar product that works! Barack Obama was not vetted before being elected President and neither was Solyndra before Mr. Obama threw that taxpayer money down the drain of unproven technology.

    LSP Energy: FAIL! – LSPEnergy LP filed bankruptcy protection and a sale of its assets in Feb 2012

    Energy Conversion Devices: FAIL! – On February 14, 2012 Energy Conversion Devices, Inc. and its subsidiaries filed for bankruptcy

    Abound Solar: FAIL! – Abound Solar received a $400 million loan guarantee from Barack Obama then announced in June, 2012 that it would file for bankruptcy. Many of these failed corporations, such as Abound, donated MILLIONS and continue to donate to Barack Obama’s campaign. Can you say, “Democrat Slush Fund”? Yes this is illegal. But Democrats are being protected from being prosecuted, for now.

    SunPower: FAIL! – SunPower stopped producing solar cells in 2011 at near bankruptcy then restructured with the help of, get this, oil giant TOTAL, Inc. who owns 60% stake in SunPower. Irony? The company is still struggling.

    Beacon Power: FAIL! – Beacon Power Corp filed for bankruptcy protection in October, 2011 just a year after Obama approved a $43 million Government loan guarantee. They remain barely in business, still struggling to make energy that makes sense or that works at all.

    Ecotality: FAIL! – ECOtality, a San Francisco green-tech company that never earned any money and remains on the verge of bankruptcy after receiving roughly $115 million in two loan guarantees from President Obama, who wants to do some more of this kind of Democrat Slush Fund Guarantees after he is elected to a 2nd term.

    UniSolar: FAIL! – Uni-Solar filed for Ch 11 bankruptcy in June 20, 2012 after laying off hundreds of workers. UniSolar received even more Obama money after showing now progress, no profits and is still failing… yet they still remain in business with Obama’s help.

    Azure Dynamics: FAIL! – Azure Dynamics filed for bankruptcy in June , 2012 wasting millions in Obama “Stimulus” money and received abatement on taxes owed and and several tax credits. Azure Dynamics LLC filed for bankruptcy protection in Canada and the US. Azure laid off 120 of its 160 employees in Oak Park; Boston; Vancouver, British Columbia; and the UK.

    Evergreen Solar: FAIL! – Evergreen Solar received $527 Million in Taxpayer money from Obama and filed bankruptcy in late 2011. Evergreen, which closed its taxpayer-supported Devens factory in March, 2011 cut more than 1800 jobs. Evergreen’s $450 million factory, turned out to be a colossal “waste” of taxpayer money.

    Ener1: FAIL! Ener1 Inc. received a $118 million U.S. Energy Department grant from President Obama to make electric-car batteries but filed for bankruptcy protection January 2012 after defaulting on bond debt.

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