A123 Battery Builder...another Obama "Green Jobs" Failure

Read the details...[URL="http://autos.yahoo.com/blogs/motoramic/battery-builder-a123-won-249-million-federal-grant-143806554.html"]

http://autos.yahoo.com/blogs/motoramic/battery-builder-a123-won-249-million-federal-grant-143806554.html[/URL]

[QUOTE=MrSplitshot;500453]Read the details...[URL="http://autos.yahoo.com/blogs/motoramic/battery-builder-a123-won-249-million-federal-grant-143806554.html"]

http://autos.yahoo.com/blogs/motoramic/battery-builder-a123-won-249-million-federal-grant-143806554.html[/URL][/QUOTE]

According to the story, one key event that made this company fail was GM selecting a South Korean company over these guys to supply the batteries for their Volt product. Nobody at GM should ever complain about Americans not buying American cars.

[QUOTE=Devils Horse;500464]According to the story, one key event that made this company fail was GM selecting a South Korean company over these guys to supply the batteries for their Volt product. Nobody at GM should ever complain about Americans not buying American cars.[/QUOTE]

When a foreign car maker's product is superior to a domestic, and at an equal or better price point, I can't fault people for buying the better mousetrap. Build a better mousetrap with just as much value if you want loyalty.

It's any company's job to build the best product at the best value to the consumer. If the South Koreans build a better battery than the Americans, or had the better track record to rest all of GM's laurels on, than so be it. In a battery powered car, the battery is pretty dang important. Is GM supposed to lay their nuts on the table for unknown A123, just because they are an American Company and got a chunk of money from the Obama? Gamble on a company that hasn't proven itself in the battery business, to provide the key component for the vehicle that was supposed to be GM's savior? If A123 goes bankrupt and their products fail, GM is screwed.

I can't say that I blame them for going with the more established company. Somebody at GM didn't believe in the sustainability of A123...and guess what? They were right.

A123 got a chunk of cash and went belly-up...but I'll bet not many of their executives missed many paychecks.

Another example of why government needs to stay the heck out of private enterprise. If you want to be the battery supplier for GM, build your way up to it and earn it...don't just expect it to be handed to you because you got a bunch of money from the U.S. Government. GM has a business to run, and selecting key component suppliers is huge.

[QUOTE=MrSplitshot;500466]When a foreign car maker's product is superior to a domestic, and at an equal or better price point, I can't fault people for buying the better mousetrap. Build a better mousetrap with just as much value if you want loyalty.

It's any company's job to build the best product at the best value to the consumer. If the South Koreans build a better battery than the Americans, or had the better track record to rest all of GM's laurels on, than so be it. In a battery powered car, the battery is pretty dang important. Is GM supposed to lay their nuts on the table for unknown A123, just because they are an American Company and got a chunk of money from the Obama? Gamble on a company that hasn't proven itself in the battery business, to provide the key component for the vehicle that was supposed to be GM's savior? If A123 goes bankrupt and their products fail, GM is screwed.

I can't say that I blame them for going with the more established company. Somebody at GM didn't believe in the sustainability of A123...and guess what? They were right.

A123 got a chunk of cash and went belly-up...but I'll bet not many of their executives missed many paychecks.

Another example of why government needs to stay the heck out of private enterprise. If you want to be the battery supplier for GM, build your way up to it and earn it...don't just expect it to be handed to you because you got a bunch of money from the U.S. Government. GM has a business to run, and selecting key component suppliers is huge.[/QUOTE]
Agree with this! If he wants to invest in another company let him do that next year while he is unemployed. Heck with all his czars and wife's entourage the unemployment rate will sky rocket when they become unemployed.

A123 has sold out to another American Battery builder, Johnson Controls . I don't remember for how much, but they were talking about selling out to China. I'm glad they sold to another company that is American made. the story was on NPR radio yesterday.

[QUOTE=waterdog101;500542]A123 has sold out to another American Battery builder, Johnson Controls . I don't remember for how much, but they were talking about selling out to China. I'm glad they sold to another company that is American made. the story was on NPR radio yesterday.[/QUOTE]

Just means Johnson Controls purchased a company for pennies on the dollar, CREATED by Obama. Yep. GREAT.

You tax dollars purchased Johnson some kickass equipment.

Later,

Geo

[QUOTE=GeoFisher;500545]Just means Johnson Controls purchased a company for pennies on the dollar, CREATED by Obama. Yep. GREAT.

You tax dollars purchased Johnson some kickass equipment.

Later,

Geo[/QUOTE] I tried to find the NPR story, but couldn't. I did find a story on where Johnson Control bought a123. and they payed 125 Million for it. about 50 cents to the dollar. a123 got a grant for 249 million. and back in Aug, of this year. China offered a123 465 million for 80% of the company. it don't make sense that they would sell it for 125 million, to Johnson Control. and not sell 80% to China for 465 million. but that's the way the article read.