Skip to comments.Green company gets $390M subsidies, lays off 125
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 A123s 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. Prystashs raise was 8.5 percent, going from $350,000 to $380,000.
"It looks like they are trying to pad their top peoples 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.
To the 'RATS, that is a "success story".
Wow another green energy success story.
Wow another green energy success story.
“....a stimulus “success story”
Green = brown. Flush it.
So, are we going to see an “Occupy A123 Systems” demonstration any time soon?
I am wondering at this juncture, if the Demorats can really steal ALL the money!
Government is completely out of control.
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.
How’s that hope and change working out?
Pray for America
and those executives will be kicking back to Obama and the Democrats
” 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.
BASIC COMPENSATION, Fiscal Year Total
Well, crud. I hope they manage to stay in business DESPITE being helped by the government.
They DO build the best lithium batteries available.
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 dont 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.”
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.
It IS! One more successful money laundering operation!!
ARREST AND CONVICT!
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 ...