Another Corporate Welfare Recipient Teeters on Bankruptcy

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That troubled company (which A123 has itself dumped $20.5 million of stock equity and cash into) admitted faulty wiring problems with its electric cars.

While Michigan workers lost their jobs, Massachusetts executives burned through $155 million in cash this year and the company stock plummeted to just over $1. A123 lost a net $172 million over the first three quarters of 2011 and has yet to see a profit. Like Solyndra’s top brass, A123 managers have been living high on the hog and partying it up with Democratic Party bigwigs.

The Michigan-based Mackinac Center reports that in February, “A123’s Compensation Committee approved a $30,000 raise for (Chief Financial Officer David) Prystash just days after (its primary customer) Fisker Automotive announced the U.S. Energy Department had cut off what was left of its $528.7 million loan it had previously received.”

Prystash’s hike was 8.5 percent, taking his base salary from $350,000 to $380,000. One A123 vice president, Robert Johnson, received a 20.7 percent pay increase that saw his salary grow from $331,250 to $400,000. Another vice president, Jason Forcier, vice president of the automotive solutions group, climbed from a $331,250 base salary to $350,000.

Analyst Paul Chesser of the D.C.-based National Legal and Policy Center raises pointed questions about the timing of the pay raises: “Were their actions intended as greater protection for their executives in the case of a sale or bankruptcy of the company?” Inquiring House GOP investigators looking into the Obama Department of Energy’s big green boondoggles should want to know.

And taxpayers should want to know more about the cozy ties between A123 and the White House and Democratic politicians. A123 Systems CEO David Vieau showered Barack Obama, the Democratic National Committee and key Democrats on Capitol Hill with nearly $17,000 before receiving the stimulus injection. A123 enviro-boodle also flowed to Mass. Sen. John Kerry and Rep. Ed Markey. Betting on “smart grid” cronyism has been a bonanza for the well-connected — and a big, bad bet for taxpayers.

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  • davarino

    Just want to know, when does O own this economy and its results. Is it still Bush's fault or is he incompetent yet? And by incompetent I mean clueless. Or is it that he just doesnt care and has used this awful economic situation to ingratiate himself and others with other people's misfortune. The left are like vampires, sucking the life blood out of this country. Come to think of it, I dont think I have seen Pelosi or Ried out in the light of day.

    • StephenD

      Well said my friend! Except…I don't think he is clueless or just doesn't care. I think he is doing EXACTLY what his agenda calls for in order to devalue further the dollar and disrupt the Exceptional American way of life as we know it. When we are all just as a European Nation-State, that is when he will be satisfied; ready for a world dictator.

  • Schlomotion

    Why, does the Presidential boondoggle and glut of subsidy money, kickbacks, squandering and corruption only look ridiculous to you people when it goes to wind and solar but not when it goes to oil and coal?

    • GLasker

      Because, unlike wind and solar, oil actually turns a profit.

      • Schlomotion

        Really? Do you profit from it?

        • Wideband

          Bet your @ss! I own stock.

          • Schlomotion

            Well enjoy your $30 dollars then. I hope it drives you far.

          • Western Canadian

            Wonder if we could take up a collection and send this idiot troll to saudi arabia?? He’d fit in, not being very bright.

          • Schlomotion

            Send me to Yahk, BC. It would be more fun.