China just bought the battery manufacturing darling of the US DoE and the Granholm adminstration.
A company that two years ago was one of the most promising U.S. innovators in the clean-fuel auto industry was rescued from collapse Wednesday. Its buyer: A Chinese auto-parts company.
Wanxiang Group Corp., one of China’s biggest parts makers, offered a $450 million lifeline to A123 Systems Inc., a maker of advanced batteries for electric vehicles that received U.S.-government backing. The deal would put the firm’s lithium-ion technology and its U.S.-funded manufacturing plant into the hands of a company that has slowly acquired a passel of auto assets across the Midwest.
A123 has ripped off the American taxpayer for $249 million in grants from the U.S. Department of Energy. It was one of former governor Granholm’s favorite picks, to the tune of $100 million. The Chinese are grateful, I suppose, for taxpayer assistance while A123’s stock dropped from $26.00 to $0.82. Without said assistance, A123 might have been gone before they could buy it. Worse yet, from Obama’s point of view, Bain Capital might have turned it around.
TOC has mentioned A123 as an excellent example of government “investment” failure.
So. Is anyone wondering why the Chinese didn’t buy Solyndra? My guess is that they, unlike the Obama administration, sometimes know a hopeless investment when they see one. And the fact that Obama himself deigned to appear at, and specifically cite Solyndra, while leaving A123 to the likes of Debbie Stabenow, does tell you that the more money government uses to tilt the market the higher the political profile, and the worse the results. A123’s jobs may be going to China now, but at least there are still jobs.