Chinese investment in battery maker A123 sparks controversy

CNNMoney ^ | August 9, 2012 | Steve Hargreaves

[Daffynition]

NEW YORK (CNNMoney) -- U.S. battery maker A123 Systems said Wednesday it is receiving up to $450 million from a Chinese firm, the latest controversial foreign investment in an American company in the electric car space.

If completed, the deal would give China's Wanxiang Group Corporation an 80% percent stake in a company that many held up as America's answer to Asian dominance of the battery market.

[Daffynition]

Well, well. There's no demand for batteries for electric cars.

A123 (AONE) sprang out of research labs at the Massachusetts Institute of Technology in 2001 and was founded with $100,000 in seed money from the U.S. government.

More recently it received a $250 million federal stimulus grant to open factories in Michigan, which now complement its manufacturing facilities in Asia.

Since this was *grant* money....the US taxpayer will never see a penny of it back.

Poof!

[cripplecreek]

Its only money.

[cripplecreek]

Another "Poof"

MEDC Removes Video of Obama, Top Dems Praising Failed Battery Company YouTube promotion showed Obama, Granholm, Levin and Stabenow promising thousands of jobs

In the fall of 2010, the Michigan Economic Development Corp. — the state's "corporate welfare” arm — uploaded a video to YouTube highlighting the battery manufacturer A123 Systems.

At the time, the company was promoted heavily by President Barack Obama, U.S. Secretary of Energy Steven Chu, former Michigan Gov. Jennifer Granholm and U.S. Sens. Carl Levin and Debbie Stabenow. Since then, A123 has shed money, laid off half its workforce, recalled products and seen its stock price plummet to about 26 cents this week from a previous high of $26.

Now, just two years after the initial roll-out, A123 is being acquired by a Chinese company. Shortly after this deal was rumored a few weeks ago, the MEDC made all of its promotional videos “private.” This is not the first time questions have been raised about the MEDC’s lack of transparency.

A123 Video Shows President Obama, Top Politicians Praising Failed Green Company

[Daffynition]

If we did our part, and went out and bought Chevy Volts....maybe *this* wouldn’t have happened.

*We* are to blame!

[cripplecreek]

We’re buying them for the government as fast as we can. If we had bought them faster, maybe Chris Stevens would still be alive.

[factoryrat]

That was the plan from the start. Government financed technology transfer to the chinese, the volt boondoogle was just a ruse.