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How Many Chevy Volt Batteries Did $150 Million in Gov’t Money Make? (Hint: Less Than One)

Oct. 9, 2012 7:29am Mike Opelka

Just days after President Obama spoke to supporters in Los Angeles about his push for green energy, another government-sponsored, green energy-related manufacturing company announced layoffs.

The company, Compact Power, was the recipient of $150 million taxpayer dollars and millions more in tax deferments and credits. Compact Power was supposed to be building thousands of batteries for the Chevy Volt here in America. Instead, they are furloughing workers before producing a single battery, Fox News reports. Not one.

Chevy Volt Battery Maker Compact Power Lays Off Employees

Photo Credit: Engadget.com

Compact Power’s parent company, LG Chem announced that workers will be placed on “rotating furloughs” (they’ll be working just three weeks each month). The South Korea-based operation is a $14 billion dollar manufacturing enterprise that employs over 14,000 workers worldwide — approximately 200 in Michigan.

Photo credit: Eworld.com

It was in 2010 that the Obama administration announced that the government would be awarding $150 million of the $300 million needed to construct the 650,000 square foot plant. Over two years ago, President Obama spoke at the ground breaking ceremony in Holland, Michigan.

During his speech to the crowd gathered to declare Michigan to be the “North American Battery Capitol” President Obama told the crowd:

“The workers at this plant are already slated to produce batteries for the new Chevy Volt, learned the other day that they’re also going to be supplying batteries for the new electric Ford Focus as soon as this operation gears up. And that means, by 2012, the batteries that will be manufactured here in Holland, Michigan. So when you buy one of these vehicles, the battery could be stamped — made in America.”

Initial estimates projected that the facility would be cranking out 15,000 of those “Made In America” Volt batteries each year. Contrary to Mr. Obama’s statement, and despite a $150 million dollar injection of taxpayer dollars, plus millions in tax credits to the company, not one battery for the Chevy Volt has come from the Michigan plant. Currently, all of the Volt batteries are being built in South Korea and shipped to America.

The blame is placed on lagging sales of GM’s alleged “game changing” vehicle. Fox News spoke with Randy Boileau, a representative for LG Chem about the layoffs, and he stressed that the plant will return to its projected output once Volt production returns later this month and demand for batteries increases. Boileau was also quick to point out that workers will be able to file for and collect unemployment benefits for the week of work they will lose each month of the furlough.

Exactly one month ago we reported that GM is losing and estimated $50,000 per Chevy Volt. We speculate that the $150 million spent to build a battery plant that has yet to provide a single battery for the unpopular car might drive that loss per vehicle even higher.

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Comments (68)

crusaderx9
Posted on October 9, 2012 at 9:34am
Romney and Ryan are in a target rich environment.

The obama regime is an “unmitigated disaster” – only corruption and the moron vote can help them now.

The mainstream media has lost its credibility and are only capable of a few futile impulse twitches as corruption has consumed their corpse.

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- RabidPatriot
  Posted on October 9, 2012 at 1:02pm
  You have grossly underestimated the American condition. The media has lost credibility with a small group of informed Americans. Everyone else thinks The Daily Show is a news outlet. Most of America falls into these categories of the uninformed, apathetic, low comprehension, leftist and young and dumb. You forget the monolithic racist vote.
  
  Report this comment
- desertspeaks
  Posted on October 9, 2012 at 1:36pm
  The Obama ANIT MIDAS TOUCH strikes yet again!!! EVERYTHING this man touches turns to crap!!!
  
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- RWCT
  Posted on October 9, 2012 at 9:34pm
  At least the 150 Million was spent in Holland U.S.A rather than Finland etc. Provided some construction jobs to build the plant. Too bad no batteries, but then Progs do not care about RESULTS, based on free market capitalism. They only care about spending OTHER people’s money until it runs out! OOPS! It has, they borrow it from China. Give it to BIG BIRD. He make more sense than Barry, and his gang.
  
  Report this comment
noslave
Posted on October 9, 2012 at 9:30am
since taxpayers money was used?do they have first dibs at createing a regular car battery plant for americans,at a very good price?? or was it another obama “green energy scam”to funnel more money to his supporters?

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williamak
Posted on October 9, 2012 at 9:29am
THANK YOU COMMENT READER ,,,,,very much

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williamak
Posted on October 9, 2012 at 9:26am
WHERE MY POST is ????????

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williamak
Posted on October 9, 2012 at 9:24am
Really sick of hearing bout [ liar in chief ] that all he know,,,is lie//////

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RIGS
Posted on October 9, 2012 at 9:08am
Maybe they should have hired the EVEREADY BUNNY for advice on making batteries for OBAMA MOTORS LOSER CAR.

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oldsoldier10
Posted on October 9, 2012 at 8:58am
fox had this bs story on their web pag, saying th gubment lost $150million for chevy volt batteries and show obummer getting into a ford! fox is starting to just s uck!

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- Mike Opelka
  Posted on October 9, 2012 at 9:21am
  Read the story… watch the video… The deal was sold as money for a plant that would build Volt AND Ford batteries. It’s not yet building either. Not BS.
  
  Report this comment
- The Jewish Avenger
  Posted on October 9, 2012 at 9:28am
  Good Job Mike, way to keep it on the correct topics
  
  (See his other two posts on this topic.)
  
  Report this comment
RFlashman
Posted on October 9, 2012 at 8:49am
Article is inherently flawed and incorrect. In January of 2009 GM announced they would build their battery packs themselves from batteries that LG Chem supplied from South Korea. Compact Power would only be used to build some prototype battery packs until the GM plant was up to speed, but no plans to use Compact Power long term. I.E. Compact Power was a loser in the 2008 bidding process for who would assemble Volt batteries. Look it up, this is old public news.

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- Mike Opelka
  Posted on October 9, 2012 at 8:58am
  from USA Today – 2009 — The cells will be made in Korea, but they will be assembled into battery modules and packs at a factory in Michigan. GM Chief Executive Rick Wagoner said the battery assembly facility will be the first in the U.S. operated by a major automaker.
  
  LG Chem CEO Peter Kim said the company may eventually build cells in Michigan and anticipates that the company’s U.S. subsidiary, Compact Power, will add to its 100 person work force in Troy, Mich.
  ———–
  
  Fast forward to 2010… watch the clip.
  
  Report this comment
- WarMunger_Al
  Posted on October 9, 2012 at 10:15am
  that makes it worse that the Government gave them $150mil for producing nothing, like Solyndra and the other scam companies they gave money to.
  
  Report this comment
redbud113
Posted on October 9, 2012 at 8:30am
I live down the street from this plant and have done some contracting work there. The workers that are there are mostly just sweeping floors and dusting off machinery that will never be used. Even they know this is a complete sham.

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- Want our country back
  Posted on October 9, 2012 at 8:46am
  Convince them to vote Romney and maybe they’ll actually have a job after the election. How is the mood in Michigan?
  
  I wish there was a site that listed ALL stimulus money that has been pissed away. … I think so far there are about 12 Green companies that have returned ZERO DOLLARS to the hard working taxpayers. Sickening…
  
  Report this comment
ss1129
Posted on October 9, 2012 at 8:29am
Its a rather misleading title. You seem pretty eager to bash GM. Better fact check, because Ford and Chrysler were both in line looking for money. All three got bailed out by the government. Google is your friend Blaze.

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- Mike Opelka
  Posted on October 9, 2012 at 8:53am
  It’s not a story about GM, this is about the battery plant for the poorly-selling Volt. AND – in terms of BAILOUTS… GM & Chrysler took them. Ford did not participate in the big, bankruptcy preventing deals… but they do take part in many programs that big companies use to fund their R&D.
  
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- WarMunger_Al
  Posted on October 9, 2012 at 10:18am
  The difference is GM got taken over by the Government. The US Government replaced the CEO and has Holdings in GM which they will not give up, aka they own GM. Ford got a loan, but did not give up sovereignty to the fed. GM is commie and they produce crap.
  
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- Depressed_American
  Posted on October 9, 2012 at 10:20am
  It’s also a story of Obama’s Administration giving 150 MILLION DOLLARS to ANOTHER GREEN Company that is on its way to BANKRUPTCY…….
  
  Report this comment
- Lt_Scrounge
  Posted on October 9, 2012 at 11:21pm
  To paraphrase Mitt Romney, Obama doesn’t pick winners and losers, he only picks losers.
  
  BTW the math behind the Volt is such that you can’t make the payments unless you’re making at least double the national average income. That means that it doesn’t matter how much gas you save, you still can’t buy the car.
  
  Report this comment
Angel_light
Posted on October 9, 2012 at 8:29am
Not only does the president pick losers, he is one. Have your piece of the eviction notice ready for November people.

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DiamondDog
Posted on October 9, 2012 at 8:21am
Tax increases? They can’t demonstrate one positive use of a dollar and they want more?

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Stelex
Posted on October 9, 2012 at 8:20am
Trillions of dollars this administration has stolen from us, our kids and our grand kids. Its mind boggling the amount of money pissed away on crap cars and his election. Time to get angry my friends.

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- O NEEDS TO GO
  Posted on October 9, 2012 at 8:52am
  Yep, this is where the record 181 million he raised in september is coming from I bet. No way anyone with a brain can send this idiot money. Better yet, be smart enough to send him money on a pre-paid visa that cannot be tracked, yeah I will believe that when pigs fly
  
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- scotts
  Posted on October 9, 2012 at 9:50am
  The government giving companies money,especially companies whose majority stock holder is a union,is extreme socialism and frankly a baddddddd business decision on so many levels.Bring back capitalism.Nothing is perfect,but facing facts,no other economy in the world has grown and been sustained as the one we have,so far.
  
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Landon410
Posted on October 9, 2012 at 8:15am
Mr. President, you pick losers

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BLACKDIAMONDSKIER
Posted on October 9, 2012 at 8:14am
Here’s where policies like this get the country…….

1.) Unemployed Americans since President Obama took office……Up by almost half a million people
2.) Unemployment rate is up by 3.4% since President Obama took office
3.) Long term unemployment is up by 87% since Obama took office
4.) Middle class income is down by $3,960.00
5.) Gas prices up 107%
6.) Home values down by 11% since Obama took office
7.) Worker health insurance costs up 23% since Obama took office
8.) Sending your kids to college since Obama was inaugurated….up 25%
9.) Americans living in poverty increased by 6.4 million since Obama took office
10.) Food stamp recipients increased by 46% since President Obama took office
11.) Consumer price index (inflation) is up 9.1% since Obama took office
12.) Federal debt is up 51% since Obama took office
13.) The United States ranked #1 in Global Competitiveness the day Obama walked into office. Since his inauguration….we have declined to #7

I wonder if these economic stats are of any importance to the American people

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- BLACKDIAMONDSKIER
  Posted on October 9, 2012 at 8:17am
  Here’s another inconvenient truth for the President. When people wake up and start asking….why are my electricity bills so high? The President doesn’t want to talk about the fact that 50% of our electricity comes from coal fired electricity generating units. We have approximately 500 of these units nationwide. President Obama is using the EPA to shut down coal. There are 111 expected and known closures from 2009-2012. That is 1/5th of the Nations nearly 500 coal plants.
  
  Question of the day for supporters of Obama……..If you take away 1/5th of the Nations coal plants, what do you think will happen to your electricity rates in the coming months?
  
  Not to mention within the next 3-5 years more than 200 coal-fired electricity generating units are to be shut down across 25 states due to President Obama and his EPA loving regulations. (This is speaking to electricity rates only…..NOT JOB LOSSES)
  
  The question is…..HOW MUCH SELF-INFLICTED PAIN CAN YOU TOLERATE BEFORE YOU CAN ADMIT PRESIDENT OBAMA IS THE WRONG PERSON FOR THE COUNTRY?
  
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- PA PATRIOT
  Posted on October 9, 2012 at 8:41am
  Black Diamond
  I give up on how much pain these people can take?
  Unbelieveably stupid or brainwashed?
  
  Think about what the historians will write about us in the future.
  
  “A small band of conservatively minded people gathered together to set out to change a Nation.”
  
  What will be the answer.
  “They failed and the US became an islamist socialist society”
  
  Or… The conservatives spread their message of thrift and saving, cutting waste, federal jobs, supressing union pressure and most importantly, preserving the future of the Republic for the good of their children and grandchildren.
  The latter I hope and pray.
  Good Post
  
  Report this comment
mikenleeds
Posted on October 9, 2012 at 8:10am
another 150 million dollars of tax payers money thrown down a big black hole … more green waste

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- Sy Kosys
  Posted on October 9, 2012 at 10:04am
  dog-whistle! thats racist talk now
  
  http://www.youtube.com/watch?v=oc1zGRUPztc&noredirect=1
  
  They are “holes which happen to be black” or “african-american holes”…..
  
  Report this comment
PA PATRIOT
Posted on October 9, 2012 at 8:02am
Can you say SOL-LYN-DRA” Or Soley-Lying-Daily” ?
or WINDDDDDDDD POWERRRRRRRRRRRRR !!!!!
Aerosmith had a song in the seventies titled “Dream ON”
November 6, 7 AM EST
The shot heard round the world

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randy
Posted on October 9, 2012 at 7:51am
I’d still like to know where the 9 TRILLION Dollars Missing from Federal Reserve is,
and the 2 trillion missing from the DOD.

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DadRocked
Posted on October 9, 2012 at 7:50am
JUST another reason folks to get you vote in as early as possible. If your state allows it, do it now. If not than get to the polls invite friends, family, Seasoned Citizens may need a ride. Just get all out there. This article is just another example of poor financial management… It has to end and have someone be accountable. SSDD – SAME S**T DIFFERENT DAY! VOTE!

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SaturdaysWarrior76
Posted on October 9, 2012 at 7:48am
@Randy: You got that right! I’m with ya on that buddy!

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Fla.Patriot
Posted on October 9, 2012 at 7:47am
Mitt was spot on; you don’t pick winners and losers, you pick losers. Apparently the Presidency is now a union job, because this fool should never have had his job after Solyndra.

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biohazard23
Posted on October 9, 2012 at 7:46am
And he’s bi+ching about subsidies to oil companies?? Ce qu’est un putain d’idiot.

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- starman70
  Posted on October 9, 2012 at 8:35am
  Once a moron, always a moron!
  
  I wish to thank you few and far between hard working Americans for your liberally usurped tax dollars so I can support failing ventures and force my green agenda on you. I know it will cost more but it is the cost of progress which must be carried by every American. You can bet that my agenda will lower ocean levels 1/3rd of an inch in the next 100 years. As Yul Brynner said while playing the King of Siam in “The King and I”: etcera, etcetra, etcetra!
  
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- biohazard23
  Posted on October 9, 2012 at 8:45am
  Heh heh heh…. :)
  
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ColoradoMaverick
Posted on October 9, 2012 at 7:46am
The GOP needs to create a very smart ad and flood the markets with it showing exactly what Obama is doing with our tax money, sending jobs overseas!

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Snowleopard {gallery of cat folks}
Posted on October 9, 2012 at 7:43am
So how much of the $140 million is now in Obamas coffers via a donation system open to total corruption?

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- Unbelievable
  Posted on October 9, 2012 at 7:53am
  I was waiting for the punch line in this article about which executive is an Obama bundler. I’m sure it will come out soon enough.
  
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SaturdaysWarrior76
Posted on October 9, 2012 at 7:39am
The WASTE of our taxpayer dollars is just stunning. It’s one thing after another! AAARRGGHH!! Get out and VOTE in November people. Vote Vote VOTE!

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- randy
  Posted on October 9, 2012 at 7:44am
  Stunning? more like CRIMINAL!
  
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- williamak
  Posted on October 9, 2012 at 9:28am
  I hear you 76
  
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