Another green energy bankruptcy gives Romney fodder for debate

A123 Systems Inc. announced today, ahead of the second presidential debate, that it's the latest recipient of stimulus funds to file for bankruptcy, giving Mitt Romney more fodder to slam the president's clean energy investments.

"At the town hall debate four years ago, then-Senator Obama promised to 'easily' create five million green jobs," Romney campaign spokesperson Andrea Saul said in a statement today. "A123's bankruptcy is yet another failure for the president's disastrous strategy of gambling away billions of taxpayer dollars on a strategy of government-led growth that simply does not work."

After the Obama administration committed $90 billion in stimulus funding for clean energy, the electric car battery maker A123 received a $249.1 million federal grant. The company used its stimulus funding to open two plants in Michigan, spurring President Obama in 2010 to call A123 and congratulate it on its "tremendous milestone." The new funding enabled the company to hire 1,000 workers, but 125 were laid off soon after. Then, after producing a faulty battery it supplied to Fisker Automotive Inc., A123 was forced to launch an expensive recall.

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Fisker itself received a $528.7 million loan from the Energy Department to produce high-end electric cars. The company, however, has had successive rounds of layoffs, spurring the DOE cut off part of the loan. Fisker sold no cars in 2011 and only 5000 in 2012, though the White House had predicted the company to sell 6,000 in those two years.

In the first presidential debate on Oct. 3, Romney specifically called out Mr. Obama for supporting failing companies like Fisker.

"You put $90 billion... into solar and wind, to Solyndra and Fisker and Tester and Ener1," Romney said. "I mean, I had a friend who said you don't just pick the winners and losers, you pick the losers, all right? So this -- this is not -- this is not the kind of policy you want to have if you want to get America energy secure."

The Obama campaign today pointed out that A123's assets will be acquired by Johnson Controls, meaning American workers could keep their jobs. "Our interest in A123 Systems is consistent with our long-term growth strategies and overall commitment to the development of the advanced battery industry," Alex Molinaroli, president of Johnson Controls, said in A123's press release today announcing the bankruptcy.

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[randysanders]

Money was given to this company because it promised to deliver and now it's fodder for Romney. Romney was the CEO of Bain Capital acquisitions but Obama wasn't CEO of neither Solyndra nor was Obama CEO of the battery maker A123. Romney may think it's fodder for himself but the real fodder is what Romney did as CEO of Bain Capital acquisitions.

[Robert_Marcos]

Governor Romney has the benefit of 20/20 hindsight. At least President Obama tried to spur growth in alternative energy. It may have failed but it wasn't as costly as the two wars the last president got us into!

[sjc_1]

This administration has a better record than most venture capital companies, considering we create good paying clean energy jobs, that is money well spent.

[hypnotoad72]

hillzhaveays -

What's your take on corporations that get "our dollar" in return for offshoring jobs and opportunities, eh?

[sjc_1]

Most of the companies funded are still in business and doing well. Many of the venture funded companies fail the first five years, I don't hear you complaining about that.

[balthus12]

Of course the federal government isn't going to get all its stock picks right, any more than a private industry broker would. In fact, it's fairly predictable that the government will have a more inconsistent record when it is selecting from stocks that will benefit the country (such as green energy companies) and not investing in tobacco (as Romney has) or other stocks that won't help average Americans if the company does well. Nor, of course, did Obama personally select the companies for his initiative. Such functions are left to experts in such matters, whose private industry track record is exemplary, or they wouldn't be put in charge. Before criticizing the President, take a look at your 401k, and see whether your broker picked 100% winners.

[lico8]

Really?? hmm...solar energy....energy that lasts forever....even my children know we need to focus on this form of renewable energy. Yes, it is not perfect yet but we put over 90 million tons of greenhouse gases into the atmosphere every single day causing global warming. This is not a debate...it is fact. Take your head out of your ... the sand and wake up. It's not fair to our children.

[ammo17]

the $500,000,000 he invested in solyndra behind everyones back has also filed for chapter 11.every democrat in congress voted yes for involvement in iraq and afghanistan.just think next year romney can blame obama for every thing that went wrong in obama era.

[sjc_1]

Bush and Cheney allowed Halliburton to receive $300 million for food and fuel that they never delivered in Iraq. There were BILLIONS of dollars that were totally unaccounted for in Iraq.

Don't tell me Bush is not president anymore, we are still paying for the mess he left. It was said rats caused the plague, no matter how many times it is mentioned, it is still true.

[john92021]

good ideas, not so good industry. Vote Romney and we can have cars run on clean coal and clean tar sands. And we can destroy what is left of the arctic ocean and other off shore ventures. We can have natural gas but no ground water, things will be hunky dory with Romney, he always batted 1000.

[sjc_1]

Bush can waste $600 billion on Iraq getting our people killed, but the GOP rants and raves about 1% being spent on clean energy jobs. Those guys have NO class at all.

[rationall7]

Agreed, America is not in the business of librating Muslim countries and cerntianly not the conservative supporters and we heard no cries about spending for the effort.

[sjc_1]

Went to Iraq on lies and cooked intel from the CIA forced by Cheney every week. If you vote for Mutt, you can have all those lies in stereo 24/7 in color on your big screen...oh joy!