Congress Asked to Stop GM From Writing Off Ignition Switch Victim Compensation Costs

Today I sent this letter to Senators Charles Grassley (R-IA) and Richard Blumenthal (D-CT):

We strongly urge you to re-introduce legislation similar to the Government Settlement Transparency Reform Act (S.1654) in the 113th Congress.

As you know, the death toll from General Motors’ failure to act on an ignition switch defect continues to climb, now at 87. Although GM's decision to create a fund to compensate victims and their families is a step in the right direction, we are troubled by GM’s ability to write off the cost as an expense for federal tax purposes.

Because of the government-directed bankruptcy and restructuring, GM is now shielded from much of its liability incurred beforehand. In order to ensure at least some semblance of accountability, Congress must make sure that GM’s future payouts for its recklessness are not simply the cost of doing business.

As the families of GM's victims have emphasized, no …

Apple Accused of Poaching Chinese Know-How Paid for by US Taxpayers

Lu GuanqiuSince 2011 NLPC has tracked the stimulus-funded fiascoes that were/are battery-maker A123 Systems and luxury electric automaker Fisker Automotive, who at one point were business partners (or stuck with each other, depending on your perspective). Both eventually went bankrupt, and cost taxpayers millions of dollars from Department of Energy awards that were never paid back. Chinese company Wanxiang Group ended up with both failed enterprises, buying their assets for cheap.

While the Obama administration declared the two bankruptcies (among others, such as Solyndra) part of their “successful” green energy investment strategy, two Republican Senators – Charles Grassley of Iowa and John Thune of South Dakota – have applied pressure to DOE over the fate of American jobs and intellectual property created by A123 and Fisker, but paid for with U.S. tax dollars.

Now, as the Senators continue to express concern about DOE policy over innovations …

New Senate Immigration Amnesty Plan Bears Union Imprint

Sens. McCain, Schumer and RubioIf there were any doubts that the oft-used term “comprehensive immigration reform” is a stalking-horse for amnesty, a new Senate proposal unveiled yesterday should dispel them. The measure, touted as a way to fix our “broken” immigration system, will do the opposite. Not only will it demean U.S. citizenship and rule of law, it also likely will produce adverse economic effects. The main feature of the 844-page bill is that it would allow millions of illegal immigrants to apply for legal residency and eventual citizenship. Significantly, the bill bears a strong union influence. And labor officials aren’t bashful about it. Ana Avendano, AFL-CIO director of immigration, declared last week: “Politicians know that if they stand in the way of citizenship we will steamroller them.” The bill, worked out in secret by a bipartisan group of senators known as the “Gang of Eight,” amounts to getting rolled over. 

Some context …

Labor Secretary Nominee Perez Flouts Labor, Immigration Laws

Thomas Perez embodies ethnic identity radicalism. Whether the U.S. Senate has the courage to challenge him is yet unknown. President Obama today nominated Perez for Secretary of Labor. As the Department of Justice’s assistant attorney general for civil rights since October 2009, Perez has promoted a hard-charging egalitarianism that goes even beyond that of first-term Obama Labor Secretary Hilda Solis, who resigned in January. His “Third World First, America Last” worldview comes with hefty baggage. He’s persuaded the Justice Department to dismiss its case against Black Panther members accused of menacing white voters and poll watchers in Philadelphia on Election Day 2008. He’s led shakedowns of banks based on spurious claims of discrimination. And well before assuming his DOJ post, Perez headed a Maryland group that promotes illegal immigration.

The announcement came as no surprise. On Sunday, March 10, the word leaked out across a wide range of media outlets

Taxpayer-Supported Fisker Looking to China, Like A123

Fisker logoStimulus déjà vu-lishness lurks: Another “green” tech company that received hundreds of millions of taxpayer dollars is financially troubled, seeks a buyer (or their preferred term – a “partner”), and China is ready to swoop in and buy up the remains on the cheap. And the same two Republican senators who slammed the last deal that went down like this are sickened again.

The first time this happened it was electric car battery maker A123 Systems that set up a deal to get $249 million (plus other multimillion dollar grants) from U.S. taxpayers, who then got left holding the bag when executives ran the company into bankruptcy, made off with some sweet bonuses, and left the techno-carcass for China’s Wanxiang Group to buy and learn about American battery innovation from.

The potential repeat scenario that appears to be playing out features Fisker Automotive, which once was A123’s …

Sale of A123 Systems to Chinese Gets Final U.S. Approval

A123 logoA123 Systems has received approval from the Committee on Foreign Investment in the United States for the controversial bankruptcy sale of most of its taxpayer-funded technology and assets to China-based Wanxiang, according to a statement released by subsidiary Wanxiang America Corp.

The authorization was the final major hurdle needed to complete the transaction. A123 had been granted $249 million to refurbish two plants in Michigan for battery production, another $30 million as a subcontractor for another stimulus-funded wind energy storage project, and various other grants and contracts by state and federal governments. But A123’s executives, while making sure their own bank accounts were well-taken care of, ran the company into the ground and now Wanxiang will reap whatever technology value is left, for cheap.

“We’re pleased the government has completed its review and provided us with the go-ahead to finalize this transaction,” said Pin Ni, president …

2012: The Year of Taxpayer ‘Green’ Waste

Obama InvescoThe past year was a dismal one for the passé idea that government would use taxpayer dollars responsibly, and that was nowhere more evident than with President Obama’s initiatives to promote “clean” energy technology companies and projects with so-called “stimulus” funds and other public money. NLPC reported extensively on some of the most egregious examples.

Solar Favors Don’t Stop Fizzle

Solyndra went bankrupt in 2011, and the reverberations over $535 million in lost taxpayer money were felt throughout 2012. Money still flowed out from the Department of Energy and its stimulus stash, but Congressional Republicans’ scrutiny of big projects – especially in the Loan Program Office –paralyzed some new projects.

The year began with BP, which not long ago downplayed fossil fuels in favor of a “Beyond Petroleum” motto, exiting the solar business despite having received a $7.5 million grant from the U.S. government …

Opposition Grows to Sale of A123 Systems to China

A123 logoThe 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 …

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.

But …

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.

Associated Press reported that that judge, Kevin Carey, ruled on Thursday that the electric vehicle battery maker can proceed with the bankruptcy process after a break-up fee – as part of a deal for Johnson Controls to buy its automotive assets – was lowered. Had a deal not been consummated, Johnson could …

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