It would appear that there is a bit of a Mexican standoff regarding the sale of General Motors stock by the three major holders. The US government (aka taxpayers), the UAW and the Canadian government have a combined ownership stake in GM of about 50%. If any of these three were to dump their shares on the market, the remaining holders will see a drop in the value of their shares due to the dilutive effect of the new shares hitting the market. Recent stories regarding the mindset of the Canadian government reveal that they will mirror the market-timing philosophy of the US government by hanging on to their stake. The decision may be driven by closed door meetings with US Treasury Secretary, Tim Geithner.
The auction for the assets and business of green stimulus recipient A123 Systems has been won by Chinese auto parts manufacturer Wanxiang Group, which aggressively sought the electric vehicle battery maker at least since the summer.
The successful bid – reported to be about $260 million – follows weeks of warnings by the U.S. government, congressmen and a group of former military and other leaders that transfer of the Massachusetts-based company would compromise American jobs, technology and security. The auction attempts to address some of those concerns, as Wanxiang was not awarded any of A123’s contracts with the U.S. Department of Defense. Instead the company’s “government business,” including all its military contracts, was awarded to Illinois-based Navitas Systems.
“We think we have structured this transaction to address potential national security concerns expressed during the review of our previous investment agreement with Wanxiang announced in August as well as to … Read More ➡
General Motors is making more ridiculous claims on the Chevy Volt by flooding the web with stories of how 100 million electric miles have been driven since the Volt’s much-hyped inception. Let’s put the boasting in perspective. In the two plus years that it took for Volt drivers to put on 100 million miles, gas-powered vehicles logged over 5 TRILLION miles in the US. It would take only 5,000 cars traveling 10,000 miles a year to log 100 million miles in two years. The Volt has fallen far short of sales goals and has cost taxpayers billions of dollars in subsidies to reach the much-publicized but unimpressive milestone. So, what’s the net reduction in gas usage in the US as a result of the Volt’s accomplishment? Less than .002%.
Only the most extreme green energy ideologue and Volt proponent could brag about saving less than .002% of gas at the … Read More ➡
A data center in western North Carolina built by Apple, Inc. has now doubled the size of its associated power-generating fuel cell facility, one which in April NLPC reported was a conflict of interest for Apple director and former Vice President Al Gore.
Major technology companies such as Google, Facebook and eBay build these massive server farms to support services such as cloud computing, but in an effort to pacify environmentalists about their enormous energy use, many go to great lengths to make these facilities appear “green.” They’re not.
Chief among the techno-eco-conscious is Apple, which has dropped a bundle on supplemental renewable energy projects – especially one that is adjacent to its new computer server facility in Maiden, N.C. First came a 100-acre solar farm that was built as the result of what you would think would be environmentally offensive clear-cutting, but three years of tree burning didn’t … Read More ➡
The Chinese government, unsurprisingly, has approved a potential sale of stimulus-funded ($279 million-plus) A123 Systems to one of its own automobile parts manufacturers, should the Wanxiang Group’s bid be the highest this week for the bankrupt electric vehicle battery maker.
That was the easy part.
So far Republican Sens. Charles Grassley (Iowa) and John Thune (S.D.) have repeatedly raised questions and concerns about the possible transfer of A123’s business, jobs and technology from the U.S. – where taxpayers have thrown in approximately $132 million only to see many times that amount in losses since its 2009 initial public offering – to China. They’re no longer the only voices speaking out against the transaction.
Last week the Strategic Materials Advisory Council, a coalition of former U.S. Government and military leaders and industry experts, announced its opposition to a transfer of A123 to Wanxiang’s control. The group sent a … Read More ➡
Albert Einstein is credited with having defined insanity as “doing the same thing over and over again and expecting different results.” Well, prepare for more insanity as General Motors is doubling down on green energy and plug-in cars after the disappointing sales results from previous entries into the field. The politically-motivated hype that we saw, and continue to see, on the Chevy Volt will be repeated. This time the over-hyped vehicle will be a Korean-made, all-electric Chevy Spark.
The misrepresentations from GM and the media on the Spark EV (electric vehicle) are already starting with headlines on stories (like this one from Bloomberg) boasting that the car will start at a price tag of under $25,000. Not exactly. For some strange reason, the price of the new Spark EV and the Chevy Volt are now being quoted after tax incentives. It is also interesting to note that Bloomberg quotes the … Read More ➡
The departure follows the saga that was the merger between Charlotte, NC-based Duke and Raleigh, NC-based Progress Energy, which was completed in June – sort of. After the North Carolina Utilities Commission delivered the final regulatory approval it needed, Duke’s board ousted former Progress head Bill Johnson. Throughout the nearly 18-month process the pending partner companies proclaimed Johnson would be the CEO of the new combined Duke, with Rogers moving up to chairman, but the directors schemed in the final months of negotiations and then sprung the firing on Johnson only hours after they congratulated him on his new position.
The NCUC was not happy about the deception, and launched an investigation and hearings with hints dropping all around that … Read More ➡
The moment that all we electric automotive industry stakeholders (that is, taxpayers) have been waiting for has arrived! The dreams that spurred our $1.4 billion investment in Nissan’s Tennessee plant, for construction of the all-electric Leaf, and its batteries, will finally be realized!
Pass out the scissors for the ribbons, set up the podium for the dignitaries, and roll out a few of those shiny new models…what’s that you say? The ceremony’s been cancelled?
Sure enough, the planned grand opening a couple weeks ago for the Japanese automaker’s factory in Smyrna, Tenn. was called off. It’s not going to be rescheduled. The excuse was that there was a scheduling conflict “among key stakeholders,” which is a surprise considering that with so much taxpayer money behind Nissan’s loan guarantee, “key stakeholders” are plentiful.
But seriously, the horrid-selling Leaf never deterred Nissan from celebrating every milestone – real and … Read More ➡
The transformation of the American economy and polity into a racial spoils system has been a defining goal of President Obama’s first term in office. It is set to become more defining in his second term, especially in light of a federal appeals court ruling two weeks ago. Obama, by various accounts, wants to be more aggressive about suing banks, employers, schools and other institutions whose practices, however unintentionally, adversely affect “disadvantaged” (read: nonwhite) populations. This is the doctrine of “disparate impact.”Attorney General Eric Holder (foreground in photo) already has used it to extract hundreds of millions of dollars in settlements from Wells Fargo and other major banks. Its widespread application is further evidence, as if any more were needed, that “civil rights” has become a well-organized shakedown racket.
These past few years National Legal and Policy Center has been anything but muted in its criticism of … Read More ➡
The 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.
This smaller (compared to other Recovery Act beneficiaries) example is ReVolt Technology, which relocated from Switzerland to Oregon to take advantage of a $5 million Recovery Act grant from the Department of Energy in order to develop and mass-produce a “zinc-air” vehicle battery. Its technology was developed in Norway where the company was backed since 2004 by Viking Venture Management. According to the Portland Business Journal, ReVolt believed it could “deliver twice the energy of conventional rechargeable battery technologies, such as lithium-ion.”
Federal money wasn’t the only attraction. The company also received $5 million in city and state loans, as well as business energy tax credits. Thus we … Read More ➡