This is even easy for simpletons to understand. Obama gives this company 249 million dollars that we borrowed from China so that this company can compete with the subsidized Chinese battery makers, instead the Chinese buy the company back for bankruptcy for 250 million of which we still owe them 249 million and now they have no debts from the bankruptcy rulings. Great job they own it for a net of 1 million dollars . You can't make this stuff up. This reported to you by Ben Dover. http://www.foxnews.com/politics/201...dized-battery-maker-zaps-obama-detroit-visit/
Unfortunately, some of the folks here will dismiss this fact as pure fiction just because it was reproted by Fox.
That we have to have committee meetings on this stuff is ridicules. In its letter, the Council noted, “For over thirty years, China has pursued an overt economic strategy of acquiring both natural resources and promising technologies. This strategy creates Chinese dominance of entire supply chains for selected materials and related technologies. Allowing Wanxiang to acquire A123 Systems would continue this trend and make the U.S. dependent on an unreliable foreign source for yet another critical defense component. For example, China has a near monopoly of rare earth production that allows it to manipulate the supply for a range of defense and renewable energy products, including nickel-metal hydride battery production. The U.S. must not allow China to acquire a similar position with A123’s lithium-ion battery technology and dominate its supply chain as well.” The Council is also concerned Wanxiang will share A123’s technology with the Chinese military if the sale is approved. A123 manufactures advanced lithium-ion batteries that provide critical electrical storage for various applications, including civilian and military vehicles, renewable energy sources, and deployable power systems. Recognizing the strategic importance of this capability, the U.S. Government has awarded nearly $250 million in stimulus grants to A123 Systems and the Department of Defense entered into multiple research and development contracts with the company.
So, if my math is correct, the Chinese get the business, the seller gets the money from the sale and the US gets the debt. Is that correct? So the government basically gave 249 million dollar endowment to a private business that does not now exist in essence. Sounds like some kind of payoff to me.
I am sure it was all orchestrated by the Bush Administration. You can never believe Faux news. Funny that most of the peanut gallery is silent on this one. They just hate it when Fox is right.
Terrible situation all around. No company is too big to fail IMO. And if you do in fact bail them out, it better be with a clear cut path to not then go bankrupt anyway mere months later.
Mee to, LOL So DOE gave our money to 55 companies, so how many have failed? Anyone know? Edit now 55 since I last looked.
https://lpo.energy.gov/?page_id=41 1705 was created by stimulas 1703 was a Bush past loan program, the last two years Obama admintration appoved the loans. FYI
Yep it's my fault I should have bought two Dan I am still waiting for my 11 year old Ford Focus built in MI to stop running, it keeps starting every morning.
