In another example of how well-earned taxpayer dollars are being mismanaged and flushed down the proverbial toilet, American battery maker A123 Systems was auctioned off to a Chinese Group of investors on Sunday in Detroit for the price of $256 million dollars.
The struggling company, which was to become one of many manufacturers of batteries for the 1 million electric cars that were supposed to be on the road by the end of 2015, was hampered by a slew of problems. The troubles include a $51 million dollar shipment of defective batteries to Fisker Automotive, which had to be recalled. Couple that with a dismal market for electric cars and the company officially filed for bankrupty on Oct. 16, even after receiving another million dollars from the Energy Department that same day.
During the bidding process, which concluded this past Sunday, concerns were raised about the sale of A123 Systems to the Chinese government becasue of what it might do with any sensitive information they got their hands on that could potentially harm the national security of this country. A123 Systems had an existing contract with the Pentagon classified as "Secret." It sold that part of its business to a smaller outfit by the name of Navitas Systems after much criticism from lawmakers concerned with the National Security aspect of the deal.
A123 Systems, which has factories in Michigan, Missouri and Massachussetts, received close to $250 million dollars in taxpayer funded stimulus grants and loans from the $2 billion dollar pool of taxpayer-funded money the president and this administration set aside in an effort to get in gear the almost non-existent electric car industry. In 2010, when the company opened up it's Michigan factory, Obama said, "This is about the birth of an entire new industry in America - an industry that's going to be central to the next generation of cars."
Safe to say, the electric car industry has never taken off and has regressed as car buyers still prefer gas-powered larger vehicles. Meanwhile, as a result of these failed green energy investments by the Obama administration, hundreds of millions of taxpayer funded dollars continue to go to waste and thousands contiue to lose jobs as a result of these plants and factories closing.
China, which holds about 1.16 trillion dollars of our debt, continues to spend big and gobble up American assets, while the Obama administration can only hope that the 2% of wealthy Americans continue to foot the bill for these failed green energy projects. Since 2009, $80 billion has been set aside for green energy projects and of those companies that received federal stimulus funds, 34 of them are either bankrupt or struggling to keep employees from being laid off.
Eighty billion dollars in taxpayer money over 10 years is $800 billion dollars, roughly the amount of new revenue that would be raised by taxing the rich. Do you see why hardworking Americans and Republicans are so reluctant to continue to give up hard earned-taxpayer dollars to Obama and this administration?
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