Plant that got $150M in taxpayer money to make Volt batteries furloughs workers by AURaptor

REAL WORLD EVENT DISCUSSIONS

Plant that got $150M in taxpayer money to make Volt batteries furloughs workers

POSTED BY: AURAPTOR
UPDATED: Thursday, October 11, 2012 10:02
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Tuesday, October 9, 2012 12:22 AM

America loves a winner!

Quote:
President Obama touted it in 2010 as evidence "manufacturing jobs are coming back to the United States,” but two years later, a Michigan hybrid battery plant built with $150 million in taxpayer funds is putting workers on furlough before a single battery has been produced.

Workers at the Compact Power manufacturing facilities in Holland, Mich., run by LG Chem, have been placed on rotating furloughs, working only three weeks per month based on lack of demand for lithium-ion cells.
The facility, which was opened in July 2010 with a groundbreaking attended by Obama, has yet to produce a single battery for the Chevrolet Volt, the troubled electric car from General Motors. The plant's batteries also were intended to be used in Ford's electric Focus.

Production of the taxpayer-subsidized Volt has been plagued by work stoppages, and the effect has trickled down to companies and plants that build parts for it -- including the batteries.
“Considering the lack of demand for electric vehicles, despite billions of dollars from the Obama administration that were supposed to stimulate it, it’s not surprising what has happened with LG Chem. Just because a ton of money is poured into a product does not mean that people will buy it,” Paul Chesser, an associate fellow with the National Legal and Policy Center, told FoxNews.com.

The 650,000-square-foot, $300 million facility was slated to produce 15,000 batteries per year, while creating hundreds of new jobs. But to date, only 200 workers are employed at the plant by by the South Korean company. Batteries for the Chevy Volts that have been produced have been made by an LG plant in South Korea.

The factory was partly funded by a $150 million grant from the U.S. Department of Energy. LG also received sizeable tax breaks from the local government, saving nearly $50 million in property taxes over 15 years and another $2.5 million annually in business taxes. Landing the factory was hailed as a coup when shovels first hit the ground.
“You are leading the way in showing how manufacturing jobs are coming right back here to the United States of America,” Obama told workers at the ground-breaking ceremony. “Our goal has never been to create a government program, but rather to unleash private-sector growth. And we're seeing results.”

Read more: http://www.foxnews.com/us/2012/10/08/lg-plant-that-got-150m-to-make-vo
lt-batteries-in-michigan-puts-workers-on/#ixzz28nOIJsZt

" I do not love the bright sword for its sharpness, nor the arrow for its swiftness, nor the warrior for his glory. I love only that which they defend. "

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Tuesday, October 9, 2012 3:10 AM

GEEZER

Keep the Shiny side up

Folks just don't seem to want to spend the money for a Volt. Even after the $7,500 rebate (your tax dollars at work) the car-buying public have balked at paying $32,000 for one. Instead, they're buying the Cruze, which is built on the same platform, starts at less than $18,000, and gets 42 mpg on the highway.

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Tuesday, October 9, 2012 6:51 AM

FREMDFIRMA

Actually I can tell you something about this, see... it's a game.
The Big Three suck up these subsidies, but if they ever come up with a viable product the "game" is over, and so they really do self-sabotage these things, to keep the money rolling in.

There was a pretty nasty explosion and lab fire back in April when they deliberately overcharged a battery on purpose in an attempt to "prove" they're supposedly inadequate/dangerous, and I mentioned before the incident where GM deliberately put a fragile aluminum driveshaft on an test vehicle to make sure it failed (which blew to pieces as expected, and damaged some employee vehicles in the parking lot) and so forth and so on.

This is effectively a form of Corporate Welfare, a "gimme" to the Big Three, subsidizing programs INTENDED to fail from the start, which also demeans and reduces the credibility of Electrics and Hybrids, conveniently boosting their market - it's a bit like funding a racial sensitivity program staffed by the Klan, what do you THINK is gonna happen ?

The Volt is not, and never was intended, to actually perform or sell, that directly from one of the project people who happens to be one of my residents, it's just a makework project to keep the subsidy cash rolling in.

So long as you allow the Big Three to stick their oar in the waters of this, you are essentially financing a deliberate failure, and I am not sanguine about the possibilities of getting it done in the US with their Regulatory Capture Lock being used as a barrier to entry.
Now focusing on ultra-high-efficiency engines, that they CAN do, if we push em, but sadly thanks to this behavior I am rather more confident than any realistic alt-energy vehicle is gonna be foreign, and if the Big Three lose out, so be it... their greed wasted that opportunity.

The Cruze has a pretty good competitor in the Honda Prius 2C, a hybrid based on the Vitz/Yaris frame, and my ex just rolled one off the lot for a straight $20k total, which ain't half bad.
Currently she's nailing about 44mpg out of it even with her, erm... err, aggressive, driving style.
(amusingly her projected mpg goes up sharply when I drive the bloody thing)

Anyhows, before blaming the tech itself, one might consider the inevitable consequences of putting its development into the hands of forces determined to see it fail.

-Frem

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Tuesday, October 9, 2012 7:22 AM

JONGSSTRAW

Any novice Wall Street auto industry analyst could have told them it would be a disaster. Maybe they did, I don't know. I would like to see all American brands succeed, and it's sad this one is going the way of the Edsel. Tax dollars wasted?....well that's what Govts. do.

Hmmm, better than Reuben's.
..One more.
Ben!
..My last one.
Okay.

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Tuesday, October 9, 2012 8:56 AM

KWICKO

"We'll know our disinformation program is complete when everything the American public believes is false." -- William Casey, Reagan's presidential campaign manager & CIA Director (from first staff meeting in 1981)

Quote:
Originally posted by FREMDFIRMA:

The Cruze has a pretty good competitor in the Honda Prius 2C, a hybrid based on the Vitz/Yaris frame...

-Frem

Ahem. *Honda* Prius?

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Tuesday, October 9, 2012 9:00 AM

NIKI2

Gettin' old, but still a hippie at heart...

Ain't it great FauxNews provides such lovely fodder for Rap and the ultra-right-wingers? What would they do without it, without a convenient place to have anti-Dem, anti-Obama, anti-liberal stories provided to them in volume every day? Just think...they'd have to find them on their OWN!

Essentially, many things have been tried by many Presidents, subsidized by our government and not worked out. What a shock it would be to anyone who thought this was the first time! Obama must have been responsible for the Edsel, too, right? How many businesses--government sponsored and/or adored/pushed by the right--have failed over time? Duh.

Hell, anyone can play THAT game:

Quote:
George W. Bush's businesses fail but he makes millions. Among Mr. Bush's business ventures:

Arbusto, an oil exploration company, lost money, but it got considerable investments (nearly $5 million) because even losing oil investments were useful as tax shelters.

Spectrum 7 Energy Corp. bought out Arbusto in 1984 and hired Mr. Bush to run the company's oil interests in Midland, Texas. The oil business collapsed as oil prices plummeted by 1986, and Spectrum 7 Energy was near failure.
Harken Energy acquired Mr. Bush's Spectrum 7 Energy shares, and he got Harken shares, a directorship, and a consulting arrangement in return. Harken, under Bush, brought in Saudi real estate tycoon Sheikh Abdullah Bakhsh as a board member and a major investor. Over the next few years, Harken would turn out to have links to: Saudi money, CIA-connected Filipinos, the Harvard Endowment, the emir of Bahrain, and the shadowy Bank of Credit and Commerce International.

A 1991 internal SEC document suggested George W. Bush violated federal securities law at least 4 times in the late 1980s and early 1990s in selling Harken stock while serving as a director of Harken. This is essentially the same kind of activity that Martha Stewart is going to prison over. Except at the time of the investigation, Mr. Bush's father was president and the case was quietly dropped.

His family name and his father's prominence were significant factors in George W. Bush's business "success", or, were significant factors in repeated saves from serious business and financial failures. Both Arbusto/Bush Exploration and Spectrum 7 failed with Bush as chairman and CEO. At Harken, Mr. Bush was relieved of day-to-day management responsibilities but still served on the board of directors. http://alaric3rh.home.sprynet.com/science/bceo.html

Oh, but of course he was in the PRIVATE SECTOR then. Wanna compare records as Prez?

Quote:
The first 2 years of the Bush administration coincided with the biggest corporate scandals and bankruptcies since Teapot Dome in the 1920s. Mr. Bush had to manage a falling economy riddled with corporate malfeasance. Companies on the corporate rap sheet:

MCI/Worldcom -- the single largest corporate securities fraud in U.S. history.

Enron -- the largest contributor to Bush's political career. The Bush administration was staffed with numerous former Enron employees and consultants.

Harken Energy -- Bush's behavior on Harken's board of directors was similar to that of the companies caught in the corporate scandals. Mr. Bush received several memos from Harken officials about the impending financial crisis in the company, sold his stock, then several days later the Harken financial problems were made public. He failed to file notice of these sales to the SEC for 8 months. The SEC simply stopped their 1990-91 investigation.

Halliburton -- Dick Cheney served as CEO and chairman from 1995-2000. He sold Halliburton stock before bad financial news regarding his company was made public. Halliburton committed fraud on its investors by overstating its earnings.

Enron and Worldcom were followed by scandals and failures at Adelphia, Tyco, and others.

Of course, Bush's business accument served him and his family well when it came to our enemies:

Quote:
No other political family in the United States has had anything remotely resembling the Bushes' four-decade relationship with the Saudi royal family and the oil sheikhs of the Persion Gulf.

The investment firm, The Carlyle Group, was run by the Bush crowd (George H.W. Bush, James Baker III, and Frank Carlucci have been its top managers and advisers). The Carlyle Group served as an interface between these Bush characters and the Saudi bin Laden family. "Some commentators felt that some connections between the bin Ladens and their black-sheep relative (Osama bin Laden) persisted". This connection directly links George W. Bush to Al Quaeda and leads to the logical question: In spite of the president's rhetoric, were Mr. Bush and Osama actually working together? Could that be why Osama bin Laden wasn't caught during his Presidency?

What made Bush take particular care to protect the Saudis (after the September 11 terrorist attack), even to the point of stymieing his own intelligence agencies? Maybe something to do with the finances of the Bush family and those of the bin Laden family.

The Bush administration demanded major deletions (especially in the 28-page section dealing with the role played by the Saudis and other foreign governments) in the 2003 joint report of the House and Senate Intelligence Committees on the origins of the 9/11 attack and how it might have been prevented.Same

Perspective kinda puts a different face on it, doesn't it? And I didn't have the convenience of a FauxNews to regurgitate it for me, I had to look it up!

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Tuesday, October 9, 2012 9:21 AM

HERO

Quote:
Originally posted by Geezer:
Folks just don't seem to want to spend the money for a Volt. Even after the $7,500 rebate (your tax dollars at work) the car-buying public have balked at paying $32,000 for one. Instead, they're buying the Cruze, which is built on the same platform, starts at less than $18,000, and gets 42 mpg on the highway.

It's just not cool. You make a 42mpg Mustang, Charger, or F-150 and people might be willing to pay a few extra bucks for it...maybe,

First thing a man thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Women want a pretty color and green is not the new pink.

H

Hero...must be right on all of this. ALL of the rest of us are wrong. Chrisisall, 2012

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Tuesday, October 9, 2012 9:23 AM

ESTEAD

Hello Niki2,
I'm just curious. If someone walked up to you with an apple in one hand, and an orange in the other, would you be able to tell the difference?

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Tuesday, October 9, 2012 10:36 AM

KWICKO

Quote:
Originally posted by Hero:

First thing a man thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

If you rely on your vehicle to get you laid, that says a lot about your incredibly tiny personality (not to mention some other parts...)

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Tuesday, October 9, 2012 10:39 AM

KWICKO

Maybe Chevy should be working on a 42mpg Corvette. It might help, since it sells slower than the Volt.

The Corvette factory routinely shuts down to let demand catch up with supply. That's something Ferrari has never had to do.

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Tuesday, October 9, 2012 10:47 AM

STORYMARK

Quote:
Originally posted by Hero:

First thing a man with a small dick thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Fixed that for ya.

Note to anyone - Please pity the poor, poor wittle Rappyboy. He's feeling put upon lately, what with all those facts disagreeing with what he believes.

"We will never have the elite, smart people on our side." -- Rick "Frothy" Santorum

"Goram it kid, let's frak this thing and go home! Engage!"

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Tuesday, October 9, 2012 11:22 AM

AURAPTOR

America loves a winner!

Quote:
Originally posted by Storymark:
Quote:
Originally posted by Hero:

First thing a man with a small dick thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Fixed that for ya.

And you think guys w/ big dicks don't want to get laid too ?

Huh.

" I do not love the bright sword for its sharpness, nor the arrow for its swiftness, nor the warrior for his glory. I love only that which they defend. "

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Tuesday, October 9, 2012 11:50 AM

KWICKO

Quote:
Originally posted by AURaptor:
Quote:
Originally posted by Storymark:
Quote:
Originally posted by Hero:

First thing a man with a small dick thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Fixed that for ya.

And you think guys w/ big dicks don't want to get laid too ?

Huh.

No, we just don't have to rely on our cars to impress girls.

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Tuesday, October 9, 2012 2:05 PM

FREMDFIRMA

Quote:
Originally posted by Kwicko:
Ahem. *Honda* Prius?

*facepalm*
Bwahahaha, I KEEP doing that, I dunno why, it just... it LOOKS like a Honda, doesn't it ?
If you take all the Toyota cars from the past 15yrs or so, and all the Hondas and look at em, you'll see exactly what I mean, though.

-F

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Tuesday, October 9, 2012 5:17 PM

KWICKO

Y'know, every time I see one of these doom-n-gloom stories from Rappy about wasted money, I have to think back to the Mars missions that failed.

How much taxpayer money was paid to corporations for those failures?

And where was Rappy's outcry?

Is he against governments helping to fund technological advancements? Or is he just against anything that's linked in any way to the Chevy Volt?

If this company made batteries for NASA, and the company failed, or the batteries failed, or the mission failed, would he be this outraged, or would he just say that such achievements are never made without sacrifice?

When it comes to space exploration, Rappy can't justify it, and admits as much, but believes it should still be done just because it's cool, and that's good enough.

He never brings up the technologies invented in the process of achieving these goals - technologies that are invariably given to private industry afterwards, and then several fortunes are made off of those technological advances - computers, fuel cells, communications satellites, the internet, etc.

Instead, what we hear about is him screaming that it's not the government's job to try to encourage or fund technological advances.

Unless they're involved directly with a space mission, of course. Then it's totally worth it, he says, just because...

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Wednesday, October 10, 2012 12:31 AM

AURAPTOR

America loves a winner!

NASA is a govt agency, is it not ? That's far different than picking winners and losers, ( well, LOSERS, in Obama's case ) Kwickie, in the PRIVATE sector.

Oh, and SpaceX? You didn't build that!

Cape Canaveral, FL -- Space Exploration Technologies (SpaceX) today successfully launched its Dragon spacecraft aboard a Falcon 9 rocket on the first official cargo resupply mission to the International Space Station. The launch went off on schedule at 8:35 p.m. ET from Launch Complex 40 in Cape Canaveral, Florida.

The SpaceX CRS-1 mission marks the first of at least 12 SpaceX missions to the space station under the company's cargo resupply contract with NASA. On board the Dragon spacecraft are materials to support investigations planned for the station's Expedition 33 crew, as well as crew supplies and space station hardware.

Dragon -- the only space station cargo craft capable of returning a significant amount of supplies back to Earth -- will return with scientific materials and space station hardware.

Dragon will now chase the space station before beginning a series of burns that will bring it into close proximity to the station. If all goes well, Dragon will attach to the complex on October 10 and spend over two weeks there before an expected return to Earth on October 28.

"We are right where we need to be at this stage in the mission," said Elon Musk, CEO and Chief Technical Officer, SpaceX. "We still have a lot of work to do, of course, as we guide Dragon's approach to the space station. But we are thrilled that Dragon was launched successfully into its intended orbit."

The CRS-1 mission follows a historic demonstration flight last May when SpaceX's Dragon became the first commercial spacecraft to attach to the space station, exchange cargo, and return safely to Earth. The flight signaled restoration of American capability to resupply the space station, not possible since the retirement of the space shuttle in 2011.

" I do not love the bright sword for its sharpness, nor the arrow for its swiftness, nor the warrior for his glory. I love only that which they defend. "

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Wednesday, October 10, 2012 2:07 AM

KWICKO

Wait - so NASA builds everything it uses, and doesn't ever contract with private companies and pay them "gubmint money"?

Huh. That's news to me.

And I'll bet SpaceX didn't use a bit of research or knowledge gained through the last 50+ years of our GOVERNMENT-FUNDED space program. [/snark]

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Wednesday, October 10, 2012 2:09 AM

KWICKO

Haliburton: winner or loser?

Northrup Grumman: winner or loser?

BTW, would you say that TARP was an example of the Bush admin picking "winners and losers" in the private sector?

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

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Wednesday, October 10, 2012 3:08 AM

GEEZER

Keep the Shiny side up

Quote:
Originally posted by Storymark:
Quote:
Originally posted by Hero:

First thing a man with a small dick thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Fixed that for ya.

Speaking from experience, Story?

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Thursday, October 11, 2012 9:35 AM

M52NICKERSON

DALEK!

Quote:
Originally posted by AURaptor:
And you think guys w/ big dicks don't want to get laid too ?

We do. We just don't need a certain car to.

I do not fear God, I fear the ignorance of man.

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Thursday, October 11, 2012 10:02 AM

STORYMARK

Quote:
Originally posted by Geezer:
Quote:
Originally posted by Storymark:
Quote:
Originally posted by Hero:

First thing a man with a small dick thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Fixed that for ya.

Speaking from experience, Story?

Nope, Im a mileage first kinda guy. I don't need a car to get some, unlike yourself. Oh, wait - you're too old and limp to worry about that anyway.

Note to anyone - Please pity the poor, poor wittle Rappyboy. He's feeling put upon lately, what with all those facts disagreeing with what he believes.

"We will never have the elite, smart people on our side." -- Rick "Frothy" Santorum

"Goram it kid, let's frak this thing and go home! Engage!"

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Thursday, October 11, 2012 10:02 AM

STORYMARK

Quote:
Originally posted by Kwicko:
Quote:
Originally posted by AURaptor:
Quote:
Originally posted by Storymark:
Quote:
Originally posted by Hero:

First thing a man with a small dick thinks when looking at a car is 'will this get me laid' not 'will this get good gas mileage.'

Fixed that for ya.

And you think guys w/ big dicks don't want to get laid too ?

Huh.

No, we just don't have to rely on our cars to impress girls.

"I supported Bush in 2000 and 2004 and intellegence [sic] had very little to do with that decision." - Hero

"I was wrong" - Hero, 2012

Mitt Romney, introducing his running mate: "Join me in welcoming the next President of the United States, Paul Ryan!"

Rappy's response? "You're lying, gullible ( believing in some BS you heard on msnbc ) or hard of hearing."

Color me unsurprised that Rappy had to have the point of a simple joke explained to his dumb ass.

Note to anyone - Please pity the poor, poor wittle Rappyboy. He's feeling put upon lately, what with all those facts disagreeing with what he believes.

"We will never have the elite, smart people on our side." -- Rick "Frothy" Santorum

"Goram it kid, let's frak this thing and go home! Engage!"

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