China wins bid for Detroit car battery maker
A123 recieved $249M in stimulus funds
- Duration 6:16
- Date Dec 10, 2012
A123 recieved $249M in stimulus funds
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Fox News alert on a presidential speech that is supposed to be about raising taxes.
But instead is raising some ugly new questions about questionable government spending.
Welcome to America live everyone I'm Megyn Kelly.
The president is -- -- Michigan at this hour touring aide Diane Miller auto plants.
The appearance is part of an attempt to pressure Republicans.
To accept his plan to both raise taxes and add billions in new stimulus spending.
But literally just a few miles away.
An embarrassing story is developing.
With a company the tax -- put a lot of -- into.
It's called 8123.
That's a car battery maker.
They supplied batteries for electric cars.
That filed for bankruptcy.
After burning for almost 200 million dollars of your stimulus money.
Here is the president praising that company.
In happier times.
Think -- is resistant -- to about a mile.
That you -- -- Recovery Act.
You guys are the first American factory to start high volume production of advanced vehicle batteries.
Well today we're learning that this battery company is being purchased.
By the Chinese.
That same company that -- all that stimulus money is now in the hands of the people who loaned us some of the money that the federal government had in the first place.
-- are well as our Fox News in the politics senator host a power play on foxnews.com.
Are let me start with the politics of this Chris.
Why are for the president choose to go to Detroit Michigan today on all days were literally just a couple miles where he speaking.
The Chinese are buying one of the worst examples of the stimulus money failing this company.
Well I bet if they'd have known if the president the White House would have known that today would be the day that that would be in the news.
They'd pick someplace other than Detroit and especially just the next neighborhood over the next township over from the location of this plant.
A 170 some odd million dollars help build that plant the president said this a 123 would be.
Leading the American economy for years to come yes I'm sure that if they had this to do over again they'd be someplace other than next in the in the town next -- So we gave them up.
Million dollar stimulus grant caught 250 is it's easier to just can't and it's at 2 o'clock 250 million dollars.
They spent -- 132.
Million of it.
They couldn't spend the whole thing because they were failing so miserably it was clear you know -- what's gonna happen so they spend a 132 million -- it.
Including to build to Detroit area factories.
And now they've -- under the Chinese are swooping in and buying this company.
And that 132.
Million dollars of the stimulus money that was spent to build up whatever.
What ever battery making facilities in abilities they had.
That's all gonna go in the hands of the Chinese.
Right that's all that's all going away and is that as a nice added irony.
In all of this.
Whatever money we borrowed from the bank of China.
Two finance whatever part of don't -- the grant that was given to a went to three batteries we still have to pay that back the taxpayers are still on the hook.
For paying back the deficit spending portion of that stimulus money even though it's now long long gone.
So we borrowed from China so that we can offer a stimulus we gave part of the stimulus to 8123.
Spent a hundred million dollars plus of the money.
Failed to succeed.
That those assets are going to China to.
Well when you say it that way -- -- make it sound like it's not very much fun that then I got.
I don't think it's really big so what and if -- -- -- -- -- -- -- -- -- -- -- They're doing they're doing pretty well in all of this and the problem for the president today is his his whole idea is I'm gonna go to Detroit and talk about how.
My economic strategy is working and that what we need to do is increase taxes on the top earners so that we can take that money.
And stimulate the economy and is he says invest in the middle class.
And is he says keep the tax rates down for those middle class folks and also.
Engage in the kind of stimulative spending that he says will allow what he's gonna talk about today which is -- -- alert to make an investment.
In the united German company to make an investment in the United States.
It is in most unfortunate timing that it comes just there's this whole China debacle is playing out next -- Well you know the White House always says whenever the you know press zeroes in on a failed stimulus attempts and it usually involves a green energy company.
That they tried to put money into to sort of prop them up and then the market said now now we still want our suvs we want our gas guzzlers.
We note that the environment but we -- And -- this so big and they hit so many kids anyway whenever that happens the White House responds by saying.
It's like anybody's investment for portfolio you've got winners and losers and you know we tried.
And they're not all going to be great of course the press is gonna focus on the ones that lose and I imagine they would say this is another.
Example of that happening.
This is true.
That's what they will say the problem for the president.
It's that that the losers are our very famous and they're very notable Solyndra.
And we've had solar firms and we other solar firms.
A 123 battery is now famous because of the China sale.
Going on right now so for the president when -- says about the unfairness of being judged by these failures the truth is they stick out so much and the president can say that over time the money that was given to other firms other green firms is gonna pay off and be a great success story.
-- a failure of this magnitude.
And it's such a politically -- inconvenient time in geographical location.
Is gonna stick out a lot more than a future success.
Did they change the name from a 123 you know to like the Chinese character.
I got through it with that may make him play ends up just -- -- up man.
I'll lawyer to say thanks Chris.