Skip to comments.Bankrupt Solyndra Files Bizarre Lawsuit Before Elections
Posted on 10/14/2012 9:08:55 PM PDT by Nachum
Solyndra has filed suit in U.S. District Court in Northern California against three of its Chinese competitors in the solar cell market. Fox news reported that the suit was filed on Thursday, October 11. The lawsuit is Solyndra, LLC v. Suntech Power Holdings Co Ltd et al, U.S. District Court, Northern District of California, No. 12-05272.
The basis of the suit is supposed price fixing at predatory prices. I smell a rat that the Chinese firms would fix prices at a predatory level. Price fixing is almost always at a higher price than should be charged rather than at a lower price than should be charged. There may be some obscure examples of certain competitors getting together to get other competitors out of the market. But in this case I think the Chinese will clearly show they had better chemistry and lower costs.
The other interesting aspect of the suit is that it names only three Chinese firms that also have their stock listed in the US. The three firms named are Suntech, Trina Solar Ltd. and Yingli Green Energy Holding Co. There are at least three other Chinese companies who have their stock listed in the US that are not named in the suit. These three other companies are Rene Sola Limited, LDK Solar Company Limited, and J. A. Solar Holdings Company Limited, These three companies also beat Solyndra in the free marketplace and raised capital in the USA.
The suit that Solyndra brought claims the three Chinese companies lowered pricing by 75% over four years and that the prices moved in tandem. Well, that is what happens when a commodity market is oversupplied and competitors fight for market share. The Chinese have learned Economics 101 that firms will lower prices till they reach their marginal cost.
(Excerpt) Read more at breitbart.com ...
The list, Ping
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This is called shifting the blame on the failure of a program that Obama endorsed during election time...lol
I have heard/read that the Chinese are not above selling ultra cheap to run off the competition, often with state support, called “dumping” I believe.
Correct. They use to allow gas stations to do this in Minnesota.
They called it gas wars..
They outlawed it. They felt walmart would take over providing gas at low prices and our local governments would have none of that.
Solyndra is a scam all the way around
IRS says tax avoidance at heart of Solyndra bankruptcy plan
China has also put harsh limits on the exports of rare earth minerals, limiting the supply of these materials. Which drives manufacturers of solar cells and many high end electronics to China to ensure a supply of raw materials.