That has been public knowledge for some time now. They have quietly owned a smaller percentage for some time. This is an expansion of their ownership influence.
The list of stimulus money that went overseas is huge and costly to US taxpayers.
$3 billion in stimulus money went to build a new GM car/truck plant in Brazil.
The Solyndra money was used to buy Photon Solar in India. Which then took over filling the $4 billion in PG&E PV orders for 2 solar farms being built in southern California with taxpayer funds. Orders that Solyndra received only because they were the only bidder with a production plant in California. A condition of the contracts was supposed to be the panel production jobs stayed in the state, but Governor Brown waived it when the California plant closed.
Fisker Automotive received more than $500 million in stimulus money when they were looking to buy a closed GM plant on the east coast. When that deal fell through, because the government overseer killed it, the Obama administration gave Fisker the OK to spend the money on a plant in Europe.
The list of crony capitalism loans and grants goes on and on.
You are a little late to the party, but it is nice to see eyes finally opening.
A123 could soon be unable to meet operating expenses.
A U.S. battery maker that was the receipt of several hundred million dollars in stimulus-backed funds could soon be under the control of a Chinese auto parts company. This could become a political liability for the Obama administration.
Yesterday, A123 Systems announced that it had signed a non-binding memorandum of understanding with China’s Wanxiang Group for a US$450 million investment in return for an 80 percent stake in the company, which U.S. taxpayers helped to finance.
A123 received a $249.1 million grant from the Department of Energy to build its battery concept shorter after its IPO in 2009, but commercial success has remained elusive. This past year wrought multiple recall programs, poor sales, and an investor class action lawsuit. It is now veering toward bankruptcy.
Yesterday, the company reported an $82.9 million net loss in its shareholder filings and disclosed that it anticipated major cash flow problems. Q2 revenues fall 53 percent over the last quarter. The company lost $55.4 million in Q2 last year.
The bankruptcy of Solyndra, a manufacturer of thin-film solar panels, rapidly became a focal point for political opposition. I’ve previously referred to A123 as Solyndra 2.0, and expect that its ‘failure’ will inspire harsh criticism of the Stimulus program.
Green jobs remain a centerpiece of President Obama’s economic agenda, so it’s unsurprising that Congressional Republicans, including standard-bearer Mitt Romney, uniformly oppose renewable energy subsidies. The renewables category has effectively been politicized, and some policy experts say Solyndra’s failure places future energy investment at risk.
Last week, Mitt Romney called for an end to renewable energy tax credits, which are generally associated with President Obama. Ironically, the tax credits Mr. Romney now opposes were established during the George H. Bush administration. A123’s potential future as a Chinese subsidiary adds some validity to that position.
It is important to note that A123’s DOE grant will not turn up in a bank in China. “Federal funds can only be used for building factories in North America and the creation of jobs, and that’s what’s been done,” CEO David Vieau told Bloomberg.
Regardless of that restriction, this is especially harsh election year, and there are many videos on YouTube of Present Obama and Nancy Pelosi standing in front of A123 Systems’ plants. It’s a safe bet that a Chinese company acquiring a controlling interest in a Stimulus recipient could become fodder for an attack ad.
(Image credit: Library of Congress)
Related on SmartPlanet:
- Fisker recalls Karma over A123 battery defect
- Fisker preps project Ninja luxury sedan
- Fisker, EV Connect streamline car charging infrastructure
- Fisker Karma hydrid electric car coming in March
- Quantum to produce solar roof for Fisker Karma
- Fisker to replace electric car batteries - again
- Solar manufacturer deathwatch: Solon files for insolvency
- Ex Solyndra workers tap $14 million federal aid package
- Why Solyndra failed and the DOE loan program is next
- Solyndra roundtable: future renewable energy investment is at risk
- Another troubled solar panel maker halts production, cuts jobs
- U.S. almost became a part owner of Solyndra
- Another DOE loan guarantee recipient files for bankruptcy
- Solyndra probe extends to three more solar companies
