Contribute
Connect with the GOP:

research

The Big Fail: Solyndra Syndrome

- May 31, 2012

Banner Day For The Obama Investment Portfolio

OBAMA’S RISKY INVESTMENTS IN THE ELECTRIC CAR INDUSTRY HAVE FAILED TO PRODUCE THE JOBS AND CARS HE PROMISED

Obama Pumped Over $1 Billion Into Electric Cars With The Goal Of Putting 1 Million Cars On The Road But So Far Only 50,000 Have Been Sold. “Since 2009, the Obama administration has awarded more than $1 billion to American companies to make advanced batteries for electric vehicles. Halfway to a six-year goal of producing one million electric and plug-in hybrid vehicles, auto makers are barely at 50,000 cars.” (Mike Ramsey, “Car Battery Start-Ups Fizzle,” The Wall Street Journal, 5/30/12)

  • Obama’s Battery Makers “Have Few Customers, Operate Well Below Capacity And, So Far, Have Created Less Than A Third Of The Jobs Promised By 2015.” “The money funded nine battery plants—scattered across the U.S. from Michigan to Pennsylvania and Florida—that have few customers, operate well below capacity and, so far, have created less than a third of the jobs promised by 2015.” (Mike Ramsey, “Car Battery Start-Ups Fizzle,” The Wall Street Journal, 5/30/12)

Pike Research Electric Vehicle Analyst John Gartner: “The Market Was Never Going To Develop It As Quickly As The DOE Expected. It's Kind Of Out Of Alignment With Reality.” “‘The goals that were tied to the grants said you have to ramp up this quickly, and those goals were overly optimistic,’ said John Gartner, an analyst who follows the electric-vehicle market for Boulder, Colo.-based Pike Research. ‘The market was never going to develop it as quickly as the DOE expected. It's kind of out of alignment with reality. The whole goal of 1 million electric vehicles [by 2015], there is just no way that is going to happen.’” (Mike Ramsey, “Car Battery Start-Ups Fizzle,” The Wall Street Journal, 5/30/12)

Analysts Say That “The Risk Is Rising That Taxpayers In Many Cases Will Not See A Return On Their Money Soon, If Ever.” “The Obama administration has poured roughly $5 billion in taxpayer funds into the electric-car industry, offering incentives to manufacturers, their suppliers and even car buyers who might want to go green. But analysts say the risk is rising that taxpayers in many cases will not see a return on their money soon, if ever. Instead, they warn that some federally subsidized companies could be forced to shut down in coming months.” (Carol D. Leonnig and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/12)

Fisker Automotive May Not Build Its Luxury Electric Cars In The U.S.

Fisker Automotive May Not Build Its Hybrid Electric Vehicles In The United States Despite Receiving The $200 Million In Taxpayer Funds. “The luxury carmaker Fisker Automotive continues to signal it could ditch plans to build its next generation hybrid electric vehicle in the United States, despite the nearly $200 million in Obama administration loan money it has already received.” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

Fisker Received The Funds To Hopefully, One Day, Employ 2,000 Workers At A Former General Motors Plant In Delaware. “Fisker received federal funds in part to help purchase a shuttered General Motors plant in Delaware, where it predicted it would one day employ 2,000 auto workers to assemble the clean-burning gas-electric family car, known as the Atlantic. But company executives began hinting in February that it would reconsider that plan and look for a cheaper place to build the car after the Department of Energy froze the $529 million green-energy loan the company had received, and had been drawing on since 2010.” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

  • “Fisker Used The First $169 Million In Taxpayer Funds To Bring To Market The Karma, A Flashy $100,000 Hybrid Sports Sedan That It Assembles In Finland.” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

One Of Fisker’s Karmas Broke Down In The Middle Of A Consumer Reports Test, Spawning A Battery Recall. “Earlier this year, one of the Karmas stopped working in the middle of a Consumer Reports road test -- an embarrassing breakdown that Fisker later blamed on a faulty battery. The lithium-ion batteries became the subject of a recall, including for a defect that raised the risk of fires.” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

  • Another Karma Is Suspected In Causing A Fire In Texas Which Destroyed The Owner’s Home. “More recently, one of the high-priced cars went up in flames in the garage of its Texas owner. Fisker said the car was unplugged at the time of the fire and the battery pack was intact and still working after the blaze -- all clear indications, they said, that neither the car nor its battery had anything to do with the fire. A spokeswoman for the National Highway Traffic Safety Administration told ABC news the agency is ‘aware of the incident and is working with local authorities to evaluate whether there are any potential safety implications.’” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

Fisker Investor John Doerr Sits On President Obama’s Economic Recovery Advisory Board. “One of the company's major backers is the venture capital firm Kleiner Perkins Caufield & Byers, according to published reports. The firm's partners include John Doerr, a billionaire tech mogul who serves on President Obama's Economic Recovery Advisory Board.” (Matthew Mosk, “Fisker May Never Build Electric Cars In US,” ABC News, 5/30/12)

A123 Signaled Yesterday That It Is In Danger Of Collapse

A123 Systems, Which Manufactures Batteries For Fisker Automotive, Announced There Was “Substantial Doubt” About Its Viability. “Lithium-ion battery maker A123 Systems Inc said on Wednesday there was ‘substantial doubt’ about its viability because the company expects to burn through cash and report steep losses over the next several quarters.” (Deepa Seetharaman, “A123 Sees ‘Going Concern’ Risk Due To Steep Losses,” Reuters, 5/30/12)

  • A123 Received $249 Million From The Obama Administration. “The disclosure illustrates the sharp reversal of A123's fortunes since 2009, when the Obama administration granted it $249 million as part of a program to spur battery development. That year, the company also went public and its stock rose 50 percent during its first day of trading on the Nasdaq.” (Deepa Seetharaman, “A123 Sees ‘Going Concern’ Risk Due To Steep Losses,” Reuters, 5/30/12)

The Company Is Incurring Heavy Losses Due To A Recall Of Their Defective Battery Packs. “The losses stem from A123's recall of defective batteries built at its Livonia, Michigan, plant. The flaw came to light earlier this year when a Fisker Karma plug-in hybrid with an A123 battery failed during a test by Consumer Reports magazine. The repairs will cost nearly $67 million and force A123 to rebuild its inventory. A123 makes the battery for the Fisker Karma, the BMW hybrid 3- and 5-Series cars and GM's all-electric Chevy Spark due in 2013.” (Deepa Seetharaman, “A123 Sees ‘Going Concern’ Risk Due To Steep Losses,” Reuters, 5/30/12)

  • “A123 Spends $1.57 For Every $1 In Revenue It Receives From Fisker, According To Dougherty & Co Analyst Andrea James.” “But Americans have been slow to adopt EVs and A123 was also hurt by its over reliance on Fisker. A123 spends $1.57 for every $1 in revenue it receives from Fisker, according to Dougherty & Co analyst Andrea James. Fisker cut back its orders last fall. A123 reported a $125 million first-quarter loss, its largest-ever quarterly loss.” (Deepa Seetharaman, “A123 Sees ‘Going Concern’ Risk Due To Steep Losses,” Reuters, 5/30/12)

LG Chem Took Over $150 Million To Build An American Plant Staffed With Korean Workers

Compact Power, Inc. (On Behalf Of LG Chem, Ltd.) Received A $151.4 Million Award Through The Department Of Energy’s Energy Efficient And Renewable Energy Recovery Act For The “Production Of Lithium-Ion Polymer Battery Cells For The GM Volt.” (Department Of Energy, “Recovery Act Awards For Electric Drive Vehicle Battery And Component Manufacturing Initiative,” Press Release, October 2011)

  • “Korea's LG Chem Built A Plant In Michigan To Supply General Motors, But That Plant, Which Employs 220 People, Hasn't Yet Begun Production, A Company Spokesman Confirmed.”  (Mike Ramsey, “Car Battery Start-Ups Fizzle,” The Wall Street Journal, 5/30/12)

LG Chem “Bought A Lot Of Korean Equipment And Supplies. And They Filled Some Of Those Sought-After Jobs With Korean Workers.” “In 2010, Obama and Vice President Biden personally appeared to break ground at two Michigan plants. The plants were getting a combined $300 million under the stimulus program to build electric car batteries. But as it turns out the companies getting all those American tax dollars are largely owned by Koreans. They bought a lot of Korean equipment and supplies. And they filled some of those sought-after jobs with Korean workers. That drew anger from local labor unions. They say pictures, taken inside the plants show Korean nationals doing hands-on work that should be done by Americans.” (Sharyl Attkisson, “Unions Say Foreign Workers Taking Stimulus Jobs,” CBS News, 4/13/12)

  • “LG Chem Calls The Union Complaints ‘Baseless’ And Says Korean Nationals Haven't Been ‘Used To Provide Labor Or Craft Work.’ The Unions Insist They've Seen Foreign Workers Doing The Very Jobs Americans Could Do.” (Sharyl Attkisson, “Unions Say Foreign Workers Taking Stimulus Jobs,” CBS News, 4/13/12)

Johnson Controls Built A Facility With Stimulus Money That Is “Nearly Idled”

“Rival Johnson Controls Inc. Used Government Grants To Build A Battery Plant In Holland, Mich., But That Facility Is Nearly Idled Now After Its Main Customer Went Bankrupt.” (Mike Ramsey, “Car Battery Start-Ups Fizzle,” The Wall Street Journal, 5/30/12)

  • Johnson Controls Received $299 Million Through The Stimulus Before Deciding To Open Only One Battery Plant Rather Than Two. “Johnson Controls, which received a $299 million stimulus grant, opted to build one factory instead of two because of lower-than-projected demand, a company official said, and that one is now operating at half capacity.” (Carol D. Leonnig and Joe Stephens, “For Obama’s Green-Car Revolution, Fits And Starts,” The Washington Post, 12/7/12)

Previous post

The Big Fail: Hope Fades In May

Next post

Great Moments In Failed Obamanomics: ObamaCare
Republican National Committee

Connect With Us

Republican National Committee

Follow GOP

Chairman Reince Priebus

News & Videos
  • 310 First Street SE, Washington, DC 20003
  • 202-863-8500

Paid for by the Republican National Committee. Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com

Paid for by the Republican National Committee.
Not Authorized By Any Candidate Or Candidate's Committee. www.gop.com