A123 – Stimulus Money from Government
A123 was was part of the Obama administrations $2 Billion program to stimulate the electric car industry in the United States. They had already received about half of a $249 million grant or $129 million when Chinese auto parts maker Wanxiang swept in and bid $257 million for the firm.
Wanxiang BTW, began in 1994 and is now the largest auto parts maker in China. One in three of every American vehicle contains some of Wanxiang’s parts. They own 28 U.S. facilities in 14 U.S states including 8 facilities in Mexico and from their humble 1st year of $2.3 million in revenues are now up to $13 billion. Brilliant strategies? Methinks not.
Keep in mind that the Federal government has been ceded NO authority in the U.S. Constitution to transfer public money to private Corporations for any reason. When you see how this plays out, you will see why that concept is in the best interests of the public.
At least 2 dozen members of Congress and the Strategic Materials Advisory Council, a group which includes retired military leaders whose mission according to their webite is:
opposed the sale.
According to the deal, Wanxiang would get A123’s automotive, electric-grid and commercial business assets which includes ALL of its technology products, customers and even the factories in Michigan, Massachusetts and Missouri which will continue to operate.
Fortunately, for Wanxiang, all of this was somehow resolved according to David Vieau, A123’s Chief Executive who said, “We think we have structured this transaction to address potential national security concerns.”
Sure makes me feel warm and fuzzy about this re-positioning of American public money, technological know how and materials to the Peoples Republic of China.
Now- The Good News in the Deal!
The good news is the Chinese firm didn’t get everything. A123 System’s much smaller government division concentrated in Michigan will go to Navitas Systems of Ann Arbor, Michigan for $2.3 million. Navitas Systems works on mainly government contracts. This means 40 employees out of the 1,300 total A123 employees will remain in American hands working on government contracts.
See, that $129 million paid off after all! Sure glad we bailed out A123 Systems. (Let’s see 40 divided into $129 million……oh sorry, just trying to calculate the cost per American jobs retained in American hands saved.)
Of course, the Chair of the Treasury Department which reviews these deals is Tim Geithner, CFR member and former President of the Federal Reserve Bank of New York. The Committee on Foreign Investment in the U.S. includes the heads of the Departments of Treasury (Chair or Geithner), Justice, Homeland Security, Commerce, Defense, State, Energy and the offices of the U.S. Trade Representative and Science & Technology Policy.
Thanks, dudes and dudesses. You are doing a great job dismantling our manufacturing sector.
China Motors- Precursor to A123
The video below is another example of how American public money was siphoned off to China through General Motors who, as we know, were bailed out by the U.S. taxpayer. Wait till ya see how this money was used:
[vsw id=”Lvl5Gan69Wo” source=”youtube” width=”425″ height=”344″ autoplay=”no”]
Unfortunately, the nightly news doesn’t give much air play to these kind of deals. I can’t imagine why. You would think that there would be an interest in the topic right?
Unless your owner/Big Boss disagrees with the spin perhaps?