Paul Chesser's blog

Green Energy Stimulus Bankruptcies Come in All Sizes

ReVolt logoThe little-reported bankruptcy of a relatively small electric vehicle battery manufacturer last month illustrates the many problems with President Obama’s green energy stimulus program, and why the more appropriate location for the ramblin’, gamblin’ White House might be Las Vegas.

Payouts to Bankrupt A123 Systems Likely to Continue

A123 logoA reply by stimulus recipient ($115 million of a $249 million grant paid out) A123 Systems to an inquiry by Republican Sens. Charles Grassley (Iowa) and John Thune (S.D.) showed the electric vehicle battery manufacturer received nearly $1 million in Recovery Act funds on the day it declared bankruptcy.

The money flow is not likely to stop.

A123 as a whole, or in pieces, is going to be sold to the court-approved buyer(s). That is likely to be either Johnson Controls, which is the lead bidder for the company’s automotive business, or Wanxiang Group, which wants to buy the whole company. A123 had an agreement to transfer up to 80 percent of the company’s ownership to the China-based automotive parts manufacturer over the summer, but its bankruptcy filing on Oct. 16 – with Johnson Controls as the new automotive assets purchaser – nullified its agreement with Wanxiang.

Fisker's Big Fundraiser is Going Out of Business

Fisker logoThe venture finance operation that raised money for crony capitalist investors Kleiner, Perkins, Caufield and Byers, and their green tech firms like electric car company Fisker Automotive ($193 million paid in stimulus loan guarantees) and fuel cell manufacturer Bloom Energy, is shutting down, according to a Fortune report.

A123's Executives Get Their Richly Undeserved Bonuses

A123 logoPresident Obama’s penchant for flushing taxpayer money down the green energy toilet lives at least another four years, and his crony supporters continue to benefit.

The latest example is the pending sell-off of assets by bankrupt A123 Systems, which was awarded upward of $279 million in stimulus funds, plus other assorted government grants and contracts. The top executives who presided over its failure – and supported the president’s cap-and-tax initiatives early in his term – are likely to receive millions of dollars in bonuses, thanks to their scheming earlier this year and a bankruptcy court judge.

Hurricane Sandy Reduces 16 Fisker Karmas to Ashes

Fisker logoWe’ve already seen Fisker Karmas spontaneously ignite in a Texas garage and a supermarket parking lot in California, which were blamed on isolated incidents.

But now the taxpayer-subsidized ($193 million) electric automaker has seen several of its $102,000+ luxury hybrids go up in smoke all at once, thanks to Hurricane Sandy.

Jalopnik.com reported Tuesday night that approximately 16 of the Karmas that were parked in Port Newark, N.J. Monday night as Hurricane Sandy approached were submerged by the storm surge. According to the Web site’s unidentified source, the vehicles then “caught fire” and “exploded.” Jalopnik has exclusive photos of the Karmas in which they all were thoroughly destroyed by what must have been an intense inferno.

Chinese Back in the Picture to Buy Bankrupt A123 Systems

A123 logoIs it back to China for Obama-boosted battery maker A123 Systems?

In August the Massachusetts stimulus recipient (more than $279 million, plus a bundle of other government contracts) announced that Wanxiang Group would infuse the failing company with quick cash as part of a plan to assume as much as 80-percent ownership. A barrage of questions and concerns followed – most prominently from Republican Sens. Charles Grassley (Iowa) and John Thune (South Dakota) – about the logistics of the deal, the potential relocation of taxpayer-funded jobs overseas, and the protection of U.S.-financed technology. Required approval by both the Chinese and U.S. governments seemed to be a high hurdle.

Failed Renewable Technologies Are An Expensive Teaching Moment

LGChem logoA story that went viral over a week ago showed how (non)-workers at a Michigan electric vehicle battery plant, funded through the stimulus by taxpayers, spent their time playing games, reading magazines, watching movies or helping charities like Habitat for Humanity – that is, when they weren’t ‘off-duty’ on their cyclical furloughs.

According to a report by WOOD-TV in Grand Rapids, the LG Chem factory in Holland, Mich. – blessed with $151 million from a Department of Energy Recovery Act grant and $100 million from Wolverine State taxpayers – had “yet to ship out a single battery.”

Emails Show White House Exerted Pressure for DOE Loan to Abound Solar

Abound logoThe claim that the many beneficiaries (like Solyndra and Fisker Automotive) of President Obama’s green energy stimulus program received their millions of taxpayer dollars based on measurable metrics rather than political favoritism has always been undermined by the circumstantial evidence, but documents obtained by Complete Colorado indicate the White House applied direct pressure to its own Department of Energy to reward (another) one of its allies.

Executives at Bankrupt A123 Now Want Bonuses

A123 logoTaxpayer stimulus waster A123 Systems has not only declared financial bankruptcy – its executives also seem to be driving toward moral bankruptcy as well.

CEO David Vieau and his lieutenants, after receiving well over $279 million in Recovery Act funds and at least $135 million from Michigan taxpayers, have run the company into the ground. Yet they have asked a bankruptcy court judge for his blessing to receive up to $4.2 million in executive and retention bonuses to see through the company’s takeover, likely by Johnson Controls.

Timeline: A123 Systems' Downward Spiral to Bankruptcy

A123 logoAs Bloomberg reported today, stimulus-funded electric vehicle battery maker A123 Systems filed bankruptcy in federal court after failing to make a debt payment that was due. Milwaukee Business Times has reported that Johnson Controls will purchase the “automotive business assets” of A123 for $125 million, and that A123 will receive from Johnson $72.5 million in “debtor in possession” financing to continue operating during the sale process.

Regular readers won’t be surprised, as the company’s gradual sink to its current depths – despite receiving hundreds of millions of dollars from taxpayers – has been covered by NLPC since late last year. A review:

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