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Green company gets $390M subsidies, lays off 125
The Washington Examiner ^ | February 25,2012 | Joel Gehrke

Posted on 02/25/2012 6:06:09 PM PST by Hojczyk

A123 Systems, an electric car battery company once touted as a stimulus "success story" by former Gov. Jennifer Granhom, D-Mich., has laid off 125 employees since receiving $390 million in government subsidies -- but is still handing out big pay raises to company executives.

"[T]he company has laid off 125 employees and had a net loss of $172 million through the first three quarters of 2011," the Mackinac Center for Public Policy reports, observing that the company's primary customer, Fisker Automotive, is also struggling financially. "Yet, this month A123’s Compensation Committee approved a $30,000 raise for [Chief Financial Officer David] Prystash just days after Fisker Automotive announced the U.S. Energy Department had cut off what was left of its $528.7 million loan it had previously received."

This month has seen significant pay boosts for other A123 executives, as well:

Robert Johnson, vice president of the energy solutions group, got a 20.7 percent pay increase going from $331,250 to $400,000, while Jason Forcier, vice president of the automotive solutions group, saw his pay increase from $331,250 to $350,000. Prystash’s raise was 8.5 percent, going from $350,000 to $380,000.

"It looks like they are trying to pad their top people’s wallets in case something really bad happens," Paul Chesser, associate fellow for the National Legal & Policy Center, suggested.

The Department of Energy gave the battery company $249.1 million in grant money, while the Michigan government provided A123 with another $141 million in tax credits and subsidies, according to the Mackinac Center.


TOPICS: Business/Economy; Crime/Corruption; Government; News/Current Events
KEYWORDS:

1 posted on 02/25/2012 6:06:12 PM PST by Hojczyk
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To: Hojczyk
"[T]he company has laid off 125 employees and had a net loss of $172 million through the first three quarters of 2011,"

To the 'RATS, that is a "success story".

2 posted on 02/25/2012 6:08:57 PM PST by FlingWingFlyer (It's time for the DemocRAT voter base to start paying their "fair share" of taxes.)
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To: Hojczyk

Wow another green energy success story.


3 posted on 02/25/2012 6:09:45 PM PST by DaiHuy (One Big Assed Mistake America)
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To: Hojczyk

Wow another green energy success story.


4 posted on 02/25/2012 6:09:56 PM PST by DaiHuy (One Big Assed Mistake America)
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To: Hojczyk

“....a stimulus “success story”

Oxymoron.


5 posted on 02/25/2012 6:10:03 PM PST by Huskrrrr
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To: Hojczyk

Green = brown. Flush it.


6 posted on 02/25/2012 6:12:14 PM PST by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
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To: Hojczyk

So, are we going to see an “Occupy A123 Systems” demonstration any time soon?


7 posted on 02/25/2012 6:21:24 PM PST by Mark (Don't argue with my posts. I typed while under sniper fire..)
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To: Hojczyk

I am wondering at this juncture, if the Demorats can really steal ALL the money!


8 posted on 02/25/2012 6:22:05 PM PST by vette6387
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To: Hojczyk

Government is completely out of control.


9 posted on 02/25/2012 6:27:08 PM PST by Psycho_Bunny (Burning the Quran is a waste of perfectly good fire.)
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To: vette6387
Don't tell me this is NOT all in the dems plans.

Set up a completely worthless shell company that "makes" a useless implausible "product", get government grants and subsidies, and "unexpectedly" fail. Yet the owners and executives happen, just HAPPEN to be democrat donors.

10 posted on 02/25/2012 6:27:53 PM PST by boop (I hate hippies and dopeheads. Just hate them. ...Ernest Borgnine)
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To: Hojczyk

How’s that hope and change working out?

Pray for America


11 posted on 02/25/2012 6:28:09 PM PST by bray (More Batting Practice for the Bambino)
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To: Hojczyk

and those executives will be kicking back to Obama and the Democrats


12 posted on 02/25/2012 6:32:13 PM PST by GeronL (The Right to Life came before the Right to Pursue Happiness)
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To: Hojczyk

” former Gov. Jennifer Granhom, D-Mich., has laid off 125 employees since receiving $390 million in government subsidies — but is still handing out big pay raises to company executives. “

That whore needs to be dragged out of her rathole in Berkeley where she’s hiding and hauled back to Michigan to stand trial for treason and theft. That bitch stole billions of dollars from productive communities and individuals in Michigan and gave that money to the thieving union pigs and Nazis in Detroit and Lansing.

I want to see that bitch hanging from a lamppost, along with that RINO state attorney general Mike Cox. That SOB traitor was given all the information to indict granholm and refused to do so.


13 posted on 02/25/2012 6:46:58 PM PST by sergeantdave
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To: Hojczyk

From http://www.reuters.com/finance/stocks/companyOfficers?symbol=AONE.O

BASIC COMPENSATION, Fiscal Year Total
David Vieau
1,552,940

Louis Golato
753,203

Andrew Cole
1,531,060

Robert Johnson
744,328

Jason Forcier
739,558

Gilbert Riley
431,506


14 posted on 02/25/2012 6:54:32 PM PST by craig_eddy (Equality of opportunity, not equality of outcome)
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To: Hojczyk

Well, crud. I hope they manage to stay in business DESPITE being helped by the government.

They DO build the best lithium batteries available.


15 posted on 02/25/2012 6:59:46 PM PST by LegendHasIt
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To: Hojczyk

This was posted February 13, 2012:

“I have been following the sad tale of government backed alternative energy companies for a while now (Solyndra, Evergreen, Ener1, etc.) and unfortunately there are a couple more in trouble. Fisker – the electric car maker, which got a loan from the government and their primary battery provider A123 Systems, are experiencing financial trouble. Fisker is seeking out some new private capital to continue operations and if they don’t find some soon, might have to file for bankruptcy. A Fisker bankruptcy would most likely lead to an A123 banruptcy because Fisker is their biggest customer. Fisker has already nixed expansion plans at a New Jersey manufacturing plant. It would be a shame if Fisker did not make it because their Karma electric car is a beautiful sight to behold.”

“The problem with the battery-makers is that they ramped up production too quickly. Electric cars are still expensive so the market remains small. The battery makers ramped up production to reap the savings from economies of scale but are now sitting around with no one to sell to.”

http://addins.waow.com/blogs/weather/tag/a123-systems


16 posted on 02/25/2012 7:02:31 PM PST by Lmo56 (If ya wanna run with the big dawgs - ya gotta learn to piss in the tall grass ...)
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To: Hojczyk

NOTE:

Two former MI governors, Engler (R) and Granholm (BRAINLESS), plus our current gov. Snyder (RINO) will be on “This Weak” with Boy Georgie on ABC tomorrow AM.

If there’s one thing that gives me peace of mind it’s that Two-Penny Jenny, who helped our state get “blown away,” is lingering in the hole of cable news death called Current.

No doubt Boy George will ask Jenny ALL ABOUT her “Solyndra Green” jobs that are going bankrupt in MI when their taxpayer subsidies get looted or run dry.

Yeah. I forgot. / sarc.


17 posted on 02/25/2012 7:04:01 PM PST by Kieri (The Conservatrarian)
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To: Huskrrrr

It IS! One more successful money laundering operation!!
ARREST AND CONVICT!


18 posted on 02/25/2012 7:08:20 PM PST by Shady (The undeniable truth of the Obama Administration...The numbers do not lie.)
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To: Hojczyk

I’d like to see the Reps make this a campaign issue but I’m not getting my hopes up.


19 posted on 02/25/2012 7:58:02 PM PST by Aglooka ("I was out numbered 5-to-1, I got 4.")
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To: Aglooka
I’d like to see the Reps make this a campaign issue but I’m not getting my hopes up.

You can bet that the Super PACs, with NO connection to the GOP [wink wink] WILL run ads about this ...

20 posted on 02/25/2012 8:08:46 PM PST by Lmo56 (If ya wanna run with the big dawgs - ya gotta learn to piss in the tall grass ...)
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To: Lmo56
It would be a shame if Fisker did not make it because their Karma electric car is a beautiful sight to behold.”

"Karma" - now that's ironic!

21 posted on 02/25/2012 10:16:22 PM PST by JaguarXKE
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