Hundreds of millions of dollars from the Obama stimulus package, went to A123 Systems and not only did the company fail, but the assets have now been sold to Wanxiang Group, a Chinese competitor.
"Whatever share of the original $249 million stimulus grant that the Treasury borrowed from China will still have to be paid back."
Via Fox News:
“The work you’re doing will help power the American economy for years to come.”
-- President Obama in a Sept. 13, 2010 phone call to battery maker A123 Systems, congratulating the firm on using the bulk of a $249 million government grant to open new facilities in Michigan.
President Obama travels to Detroit today to talk about the need for increased taxes on top earners to finance federal spending, and is using an announcement of a $100 million investment from German auto giant Daimler to illustrate that his economic prescription is working.
Obama is not likely to discuss another big business story of the day – the sale of the assets of battery maker A123 to a Chinese competitor. A123 spent at least $132 million of its $249 million stimulus package grant to build two Detroit-area factories, including one in Livonia, right next door to Redford Township, where Obama is speaking today.
Assuming a bankruptcy judge and the Obama Treasury Department approve of the sale of A123’s assets to Wanxiang Group, the Chinese battery maker would immediately become the dominant force in the industry.
So for $256.6 million, the Chinese firm would get all that the stimulus package purchased plus the company’s existing operations in Massachusetts and Missouri and have the chance to pare down the company to profitability without the overhead of A123’s debt.
Just think, Obama's proposal to Republicans for the fiscal cliff included another $255 billion in stimulus funds.... after all, he did so well gambling the last taxpayer funded stimulus money he received, huh?
Words fail me.
