Can Taxpayer-Subsidized Battery Maker A123 Survive?

A123 logoThe taxpayer-funded ($279 million) battery supplier that gave big raises and parachutes to its executives shortly after it cut “Green jobs” at its Michigan factories, reported last week it would suffer big losses again for 2011.

A123 Systems, whose fortunes were entwined with those of electric vehicle startup manufacturer Fisker Automotive, also announced it would look to China and India in order to survive.

A123 also received grants and tax credits from Michigan that could total more than $135 million.

The company said it would realize a loss of $257.7 million for last year, compared to the $152.6 million in losses for 2010. A123, which received a $249.1 million grant from the Department of Energy to refurbish plants in Livonia and Romulus, Mich. (plus another $30 million sub-grant for another energy storage project), has never been profitable. 

A123 is an investor in Fisker, which had its own $529

Taxpayer-Funded Green Job Losses Easy as A123

A123 logoIt’s another day, and another round of layoffs by a recipient of millions of dollars under the Obama Administration’s renewable energy initiatives, administered by the mismanaged Department of Energy.

This time the Recovery Act largesse – taken out of the hide of taxpayers – went to A123 Systems, Inc. The Massachusetts-based energy storage company was given $249.1 million to help launch two battery-manufacturing plants in Michigan. A123 also received grants and tax credits from the state that could total more than $135 million. In a separate federal grant as a subcontractor for another grantee, A123 received nearly $30 million for a wind energy storage project.

In the Wolverine State, the company will lay off 125 employees at the two plants in Livonia and Romulus. Officials said diminished production by a top customer – Irvine, Calif.-based Fisker Automotive – led to the cutbacks. A123 had expected to deliver batteries for 7,000 …

Witness Intimidation on Cap-and-Trade

Markey PhotoCongressional advocates of the Waxman-Markey cap-and-trade bill employed bribery to build support for this legislation when they co-opted several corporations by giving them free carbon dioxide emission credits. However, many businesses are still balking at lending support to a bill that will impose a crushing energy tax on the American people and cost the economy trillions of dollars. Since bribery didn’t work with these recalcitrant companies, Waxman-Markey supporters are trying intimidation.

On June 9, the House Subcommittee on Energy and Environment of the Energy and Commerce Committee held a hearing to hear testimony on the Waxman-Markey bill, called the American Clean Energy and Security Act, which would increase the cost of emitting carbon dioxide through an onerous cap on emissions. One of the witnesses was David Sokol, CEO of MidAmerican Energy Holdings Company. Sokol criticized the Waxman-Markey bill because it would result in higher electricity rates for his customers. …

Corporate America Sells Out Public By Jumping On Cap-and-Trade Bandwagon

WaxmanCommunist Godfather Vladimir Lenin is alleged to have famously said, “The capitalists will sell us the rope with which we will hang them.”

No where is that observation more relevant than in the sorry spectacle taking place in Congress as corporations, in exchange for short-term government handouts, fall over themselves to endorse a carbon dioxide regulation bill that will impose a crushing energy tax on the American people. 

Sponsored by Rep. Henry Waxman, (D-CA), chairman of the House Energy and Commerce Committee, and Rep. Edward Markey (D-MA), the “cap-and-trade” legislation, called the American Clean Energy and Security Act, would put a cost on carbon dioxide by imposing a cap on greenhouse gas emissions. On May 22, the committee approved the legislation which will be referred to the House Ways and Means Committee and other committees for consideration. The bill would establish a market in which regulated industries, such …