Another Government Green Jobs Initiative Flops – A123 Systems Files For Bankruptcy

October 16, 2012 3:52 pmViews: 104

So far the government being run under President Obama doesn't have a very good track record in creating news jobs centered around alternative energy or better known as green energy. Solar panel maker Solyndra lost some $500 million in taxpayer dollars when they close up shop, Fisker Automotive also took $500 million in taxpayer funds and then shipped jobs to their plant in Finland and now electric car battery maker A123 Systems, a recipient of a $249 million government grant, has filed for bankruptcy.

In 2009 A123 Systems received $249.1 million in grant money (that means your tax dollars) to build a factory in the United States but struggled with cash since it had to recall batteries sold to Fisker (another recipient of government money), the maker of a luxury electric powered car. To try and save its business, A123 had tried to work out a deal with China based Wanxiang for an investment of $465 million in A123 for an 80% ownership, but the company later dropped those plans due to the increasing complexity of the deal.

Now, US based Johnson Controls will purchase A123's automotive business assets for $125 million and will give the ailing company another $72 million to support its other business. The catalyst for the bankruptcy was A123's inability to make an interest payment on $143.8 million of notes due to expire in 2016.

The company did use $132 million of their grant money to build 2 Michigan factories which will be acquired by Johnson Controls.

During an event in September 2010 President Barack Obama called the CEO of A123 Systems and made this statement:

“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, when folks lift up their hoods on the cars of the future, I want them to see engines and batteries that are stamped: Made in America.

Unfortunately for President Obama, this is just one more bad mark on his presidency and his so-called "Green Jobs Initiative" that has produced very little and has cost the US taxpayers billions.

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