Two years after a groundbreaking ceremony attended by President Obama, a Michigan plant built with $150 million in taxpayer funds to make batteries for hybrid vehicles will be laying off workers before a single battery has been produced.
Employees at the Compact Power manufacturing plant in Holland, Mich., are working only three weeks a month due to a lack of demand for lithium-ion cells.
The plant — run by LG Chem, a South Korean company — was opened in July 2010 to make batteries for the Chevrolet Volt, a plug-in hybrid vehicle built by GM. But the car has seen poor sales, despite a $7,500 federal tax credit for each vehicle, and fewer than 25,000 Volts had been sold by September. Production of the car has been plagued by several plant shutdowns.
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.
Just because a ton of money is poured into a product by Obama does not mean that people will buy it
The $300 million plant was supposed to produce 15,000 batteries per year and create hundreds of new jobs. Batteries for the Volts are instead being made by an LG Chem plant in South Korea.
The Michigan plant has spent the past two years building infrastructure and conducting pre-production “test runs,”
The factory was funded by a $150 million grant from the U.S. Energy Department, and received tax breaks from the local government worth nearly $50 million over 15 years in property taxes and $2.5 million a year in business taxes.
Obama told workers at the groundbreaking ceremony: “You are leading the way in showing how manufacturing jobs are coming right back here to the United States.” A factory that produces nothing and furloughs workers is a symbol of where American is going under [Obama’s] failed policies.
Does anyone have any info on Missouri's Claire McCaskell? Her husband got $FORTY MILLION in stimulus money. For what? I'm sure it was stolen under the guise of some green energy scam. The Chicago Way, fleecing the taxpayer, on steroids.
Businesses affiliated with the husband of Missouri Sen. Claire McCaskill have received almost $40 million in federal subsidies for low-income housing developments. Claire McCaskill failed to pay back taxes in the past. So in addition to pocketing stimulus money the McCaskills also have a history of not paying their taxes.