A foreign renewable energy company, that U.S. taxpayers hold a major stake in via the Department of Energy Loan Program Office, is imperiled by massive debt and has begun the process of negotiating with its creditors as a prelude to possible bankruptcy.
The company is Abengoa, based in Spain, which reportedly holds 887 subsidiaries around the world. Reuters reported at the end of last month that investors declined to provide needed capital for the firm, which led to what is called, under Spanish law, “pre-insolvency proceedings.” That entails a four-month attempt to alleviate debt burdens. If that falls short, then formal bankruptcy proceedings would likely follow, which would be Spain’s largest in history. Effects would ripple globally.
Several international banks have investments at risk, to the tune of about $21.4 billion, according to Reuters. American taxpayers could be on the hook for $2.34 billion, which is the amount of debt … Read More ➡
For years NLPC has reported that the “market” for electric vehicles was anything but free and competitive against traditional gasoline-fueled automobiles. Instead it is “all hype and subsidies.”
The evidence could not be any clearer than what has happened in Atlanta. As Watchdog.org has reported, since a $5,000 state tax credit expired on July 1, sales of “zero-emission” electrics such as the Nissan Leaf have plummeted. Whereas monthly sales averaged 915 in 2015 until the year’s midpoint, sales in the month of August fell to 148, according to vehicle registration data compiled by R.L. Polk & Co.
“It was essentially taking money that would have been paid into taxes in Georgia and a subset of people were getting their car paid for,” said state Rep. Chuck Martin, a Republican, to Watchdog.org.
The steep drop was expected after the tax credit expired, but gasoline prices that are approaching $2 per … Read More ➡
One of the stimulus-funded alternative energy companies that National Legal and Policy Center reported about most the last few years was A123 Systems, which the Department of Energy awarded $279 million to crank out special batteries for electric vehicles.
The examples of government failures in picking successes in industries and economies are countless, with President Obama’s plan for subsidies of a million electric cars on U.S. roads by 2015 serving as Exhibit One. He was only off by several hundred thousand.
But that doesn’t mean that vultures can’t consume the carcasses left behind, which is exactly what the Chinese did with A123. As Bloomberg reported last week, the multinational automotive parts corporation Wanxiang Group is running the company to try to meet market demands and is “having better luck.”
Whether “fortune” is leading A123 to an ultimately healthier place is still undetermined, but Wanxiang … Read More ➡
Giant technology companies who deliver much of their services via “cloud” computing – such as Apple, Google, and Facebook – have claimed for years that they generate the massive amounts of electricity they need from renewable sources, despite their obvious dependence on fossil fuels.
For example, Apple has said it has “achieved 100 percent renewable energy at all of our data centers,” but as NLPC has reported and an investigation by liberal Web site Truthout.org confirmed, Apple does not power its servers with “green” alternative energy. Instead – as in the case with its western North Carolina facility – Apple sells the power from the solar farms and fuel cells it owns in NC to utility Duke Energy, and also buys renewable energy certificates (or “indulgences”) to “offset” the carbon dioxide emissions its electricity produces.
“Purchasing offsets is not the same as actually powering something with renewable … Read More ➡
Imagine a product that performs so well, that an evaluator says it busted through the top of its grade scale, yet that same scorer can’t recommend the product due to issues of reliability. That would be a seeming disconnect in the real world, but in this case we are talking about the immortal Tesla Model S. The illogical appraiser is Consumer Reports.
Two years ago the media enthusiastically reported how the all-electric luxury vehicle scored a 99 out of 100, as measured by conscientious buyers’ favorite magazine. Then, two months ago, CR’s researchers were even more ecstatic after their follow-up tests, and awarded the Model S a score of 103. Green-minded journalists were over the moon. “This is a glimpse into what we can expect down the line, where we have cars with the performance of supercars and the comfort, convenience and safety features of a luxury … Read More ➡
The painful and fruitless existence of Smith Electric Vehicles, waster of $32 million in U.S. taxpayer funds, has been extended after yet another near bankruptcy.
The Kansas City electric delivery truck manufacturer, whose actual business negotiates in government grants, tax breaks and other subsidies – rather than a product anyone actually wants to pay for – had announced at the end of September, via its British investor Tanfield Group, that it needed to raise $4.5 million by October 2nd and $10 million by the end of the month. Without the cash infusion, Tanfield said, “the company is likely to be forced to seek protection under US bankruptcy laws or close down its operations.”
Yesterday Tanfield notified its own investors that Smith Electric had “raised a loan” of $2.9 million thanks to help from – as you might guess – a Chinese manufacturer, FDG Electric Vehicles Limited… Read More ➡
An electric truck manufacturer that was awarded $32 million from President Obama’s stimulus program has informed one of its investors that it is on the verge of bankruptcy, if it did not raise $4.5 million by Friday and $10 million by the end of October.
The troubled saga of Smith Electric Vehicles should be particularly sickening for taxpayers because it sprouted out of a similar failed company, of the same name, in Great Britain. Smith, as part of the U.K.-based Tanfield Group, stumbled out of Europe and re-established itself in Kansas City – opportunistically at the time that President Obama was rolling out his plans to “stimulate” the “green” energy sector in early 2009.
More on that momentarily, after a look at Smith’s current desperation. According to reports from investment Web sites in England, Tanfield – which currently holds a 5.8 percent ownership stake – was notified last week … Read More ➡
Allegations in civil lawsuit threatens to mar the reputation of Secretary of Transportation Anthony Foxx (Flickr Photo: MTyndall).
He has been sued in the case of defunct DesignLine USA. The Charlotte-based hybrid electric bus-maker declared bankruptcy in 2013 after years of missteps that included maintenance problems, production problems, missed deliveries, lawsuits, and an FBI investigation. Its assets were sold to an investment group and the company now operates with a much lower profile, under the name EPV Corp.
Foxx’s role and responsibilities with DesignLine had been a mystery, and during his confirmation to the Obama cabinet, there was little curiosity about it, despite the company’s many troubles. The lawsuit brought against him this month was initiated by a trustee for DesignLine’s unsecured creditors, who seek to recover whatever losses they can. Other former executives and supporters of the company – including NASCAR team owner Rick Hendrick – were sued as well.
The … Read More ➡
Elon Musk still hasn’t given up his quarterly earnings schtick – in which he glosses over ongoing failures and points to his latest tech idea (which is not really new) – and why should he? No reason to quit until it’s clear Wall Street has stopped worshiping.
Oh, sure, after another dismal performance (operating loss of $47 million) for Tesla Motors during the most recent quarter, its stock price took an immediate dive of 9-10 percent. But while that merely returned the electric automaker back to irrational exuberance territory – as compared to the drunken sailor highs it has enjoyed in recent months – it didn’t take long for some market analyst to restore the inflation.
Regardless, last week cast more doubt on Tesla’s condition. After Reuters reported that the company loses more than $4,000 per Model S it markets and sells, the electric automaker announced it would … Read More ➡
The planet is in a nearly two-decade global warming standstill; an Arctic research expedition to study warm was halted due to too much ice; polar bear habitat is healthy; another quiet hurricane season is expected; and a paper on sea level rise by climate alarmism founder Dr. James Hansen has been dismissed by his fear-mongering colleagues as “flimsy.”
Nonetheless the corporate world has loyally marched to the White House doorstep to pledge fealty to President Obama’s carbon dioxide reduction agenda. On Monday 13 large companies announced they would collectively spend $140 billion on various initiatives to reduce carbon dioxide emissions and expand so-called “clean” energy. The collective action has been dubbed the “American Business Act on Climate Pledge” by the White House, and is intended to enhance the president’s negotiating position at international climate talks in Paris at the end of the year.
“Rising … Read More ➡