Battery Company's Collapse Hangs Over Obama

A123 Systems was subsidized, of course

President Obama travels to Detroit today to talk about the need for increased taxes on top earners to finance federal spending, and is using an announcement of a $100 million investment from German auto giant Daimler to illustrate that his economic prescription is working.

Obama is not likely to discuss another big business story of the day – the sale of the assets of battery maker A123 to a Chinese competitor. A123 spent at least $132 million of its $249 million stimulus package grant to build two Detroit-area factories, including one in Livonia, right next door to Redford Township, where Obama is speaking today.

Assuming a bankruptcy judge and the Obama Treasury Department approve of the sale of A123's assets to Wanxiang Group, the Chinese battery maker would immediately become the dominant force in the industry.

Comments

[Jerryskids]

This only 'hangs over Obama's head' to the extent that anybody holds him accountable. Good luck with that. Understand that the failure of the green initiative spending can be attributed to the general failure of policies designed to circumvent the market - but that Obama is pushing for yet more such spending. What are the chances that the next round of spending will be more successful than the last, or that politicians will stop pushing policies doomed to failure even as economically-illiterate voters support those policies in the name of 'doing something'?