Business

Massive Taxpayer-Backed Solar Panel Manufacturer Goes Bankrupt

in Belgium, Solyndra's largest installation

in Belgium, Solyndra's largest installation

Despite $535 million taxpayer dollars for loan guarantees and a speech from the President himself praising its success, the solar panel manufacturer Solyndra has gone bankrupt.

NBC reported the Chapter 11 filing is official, which means Solyndra‘s state-of-the-art, 300,000 square foot front-end manufacturing factory and a 500,000 square foot back-end facility are kaput for now.

Bloomberg News reported that the company’s reasons for the Chapter 11 Filing are “market and industry conditions.”

Apparently, the workers at Solyndra had no idea the company was in dire straits. As NBC wrote of their moment of recognition:

“When workers showed up at the Solyndra solar-panel factory in Fremont, California this morning — they were ordered to leave by guards, and then given instructions on how to pick up their final checks. In other words, the dream is over”

Massive Taxpayer Backed Solar Panel Manufacturer Goes BankruptUntil today, the company employed more than a thousand people worldwide. About 1100 of those employees are now out of a job. All of its offices in the United States, Switzerland, Germany, Italy, and France could shutter, unless a massive bankruptcy reorganization is structured. Its revenues of approximately $140 million in 2010 weren’t enough to keep the Green Energy behemoth open.

Some industry analysts believe there could be a massive consolidation of the solar panel manufacturing industry underway, while others believe the bankruptcies will result in closures.

Either way, there are clear signs the green energy industry is in trouble. Solyndra is the third U.S. solar panel manufacturer to go bankrupt this month. Evergreen Solar inc. filed Chapter 11 on August 18th, citing Chinese competition, overcapacity in the U.S. industry, and the failure of the U.S. to adopt green policies as the reasons for its failure. It’s $33 million facility in China, however, may remain open.

In the case of Solyndra, there were earlier signs of trouble. After it opened a massive $700 million facility,  Solyndra canceled plans for a public stock offering and warned it could be in trouble if federal loan guarantees did not go through.

It appears now that the Department of Energy’s flagship loan guarantee for sustainable energy  went to a company that couldn’t even sustain itself. And President Obama has held Solyndra up as an example of the the green energy movement’s ability to create jobs.

In May of last year, Obama toured the facility and said  “it is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world. And you guys all represent that. ”

You can watch the full Obama speech here (skip to 4:33 for most relevant part):

Looks like the President spoke too soon.

(H/T Pajamas Media)

Comments (205)

  • WhatsYerProblem
    Posted on August 31, 2011 at 5:09pm

    “Despite $535 million taxpayer dollars for loan guarantees and a speech from the President…”

    You mean “Because of”… Not “Despite”.

    Report Post » WhatsYerProblem  
    • AzSage
      Posted on August 31, 2011 at 5:20pm

      We‘re from the government and we’re here to help.

      Report Post » AzSage  
    • Ookspay
      Posted on August 31, 2011 at 5:42pm

      Surprise surprise, you mean the government doesn’t know how to invest money,? Huh.

      Report Post » Ookspay  
    • J Z S
      Posted on August 31, 2011 at 5:45pm

      Actually, this was subsidized by the tax payer at the direction of George Bush. Like many other decisions make by Bush, this company was never stable and never should have been considered for tax payer help. Obama canceled funding for this company due to their volatile business model. They are closing down because of spending cuts, made by Obama.

       
    • AvengerK
      Posted on August 31, 2011 at 5:53pm

      I cannot think of one company that Obama has used for a photo-op that hasn’t folded, will be folding or has laid-off workers. He keeps using these “green” companies for his photo ops. These companies rely heavily on tax payer money to even survive. Solyndra-yet another green scheme- goes belly-up and this one is a big one..535 million tax payer dollars.
      The landscape will be littered with failed solar farms, giant windmill plantations, shuttered ethanol plants. All will cost us billions and billions of dollars. All will stand as evidence of the bankruptcy of not just the companies involved but of Barack Obama’s crony capitalism and delusional visions.

      Report Post »  
    • becker88
      Posted on August 31, 2011 at 5:54pm

      Well some good news for the day.

      http://politicalbowl.com – Political Videos

      Report Post »  
    • Ruler4You
      Posted on August 31, 2011 at 6:01pm

      The U.S. government looses more money every year to waste, fraud and mis management than most states receive in all their revenues put together. (GAO) Government isn’t designed to be frugal since its revenue stream is permanent.

      Report Post » Ruler4You  
    • AvengerK
      Posted on August 31, 2011 at 6:09pm

      JZS….are you mad?

      “Solyndra was touted by the Obama administration as a prime example of how green technology could deliver jobs. The President visited the facility in May of last year and said “it is just a testament to American ingenuity and dynamism and the fact that we continue to have the best universities in the world, the best technology in the world, and most importantly the best workers in the world. And you guys all represent that. ”

      The federal government offered $535 million in low cost loan guarantees from the Department of Energy. NBC Bay Area has contacted the White House asking for a statement.”

      Note JZS..NBC? They’re not exactly hostile towards Obama.

      Solyndra is (and maybe will soon be “was”) a green company that was showered with 535 million dollars of Department of Energy loan guarantees LAST YEAR (the first such guarantee the Department had issued in years). Steven Chu, Obama’s handpicked energy guru (with zero experience in the real world), could not wait to send the dollars flowing, issuing the guarantee before he even hit the three month mark as Cabinet Secretary. He hailed it, as did Joe Biden, as a miracle in the making. Barack Obama toured the factory and hailed it as “leading the way towards a brighter and more prosperous future”

      I ask again JZS..are you mad?

      Report Post »  
    • quicker
      Posted on August 31, 2011 at 6:22pm

      Maybe Al Gore Can bail them out.Oh that`s right bloody liberals only believe in using other peoples money.

      Report Post » quicker  
    • Psychosis
      Posted on August 31, 2011 at 6:23pm

      jzs is an ignorant fool remember it is difficult to separate reality from fantasy in the liberal world

      Report Post » Psychosis  
    • Therightsofbilly
      Posted on August 31, 2011 at 6:29pm

      Hey JZS

      Whats up with the new user profile that has you signing up on April Fools Day instead of last Oct.?

      We already know you are a fool.

      Report Post » Therightsofbilly  
    • pscully17
      Posted on August 31, 2011 at 6:33pm

      I have FULL faith in the federal government, and their leadership. I also have unbreakable confidence in people I have never met, and do not know, to handle our tax dollars, they collect every day/month/year. In fact, I often just walk down the street, and hand people hundred dollar bills, and tell them please, take this money. i worked hard for it, I spent many hours of my week at my job, I just got my pay check, but even though i do not know you, I trust youl will be able to spend my money in a much wiser, more beneficial way than I would. so please, please take my money.. in fact. please take all my money…the respononsibility is just too much for me.—

      Report Post »  
    • Rayblue
      Posted on August 31, 2011 at 6:36pm

      Princeton University was in cahoots with the Obama administration to manufacture solar panels
      in China. Lack of quality standards and cheap communist enforced labor made China
      a bundle. As far as I know, they’re still at it. So long California jobs. Obama loves China more than words can say.

      Report Post » Rayblue  
    • ProbIemSoIver
      Posted on August 31, 2011 at 6:37pm

      I am growing impatient with this whole “Green” and “Global” thing.

      VERY impatient !!!!!!

      Report Post » ProbIemSoIver  
    • IntegrityFirst08
      Posted on August 31, 2011 at 6:40pm

      @ AVENGERK – this is what im talking about all the time. These people spout these lies. Just make crap up that suites their moronic positions. Too bad they actually get some poor souls to listen to them rather than using common sense.

      +1 to avengerk

      -1 to liberalism………again

      Report Post » IntegrityFirst08  
    • Restored One
      Posted on August 31, 2011 at 6:52pm

      How many companies now have shut down since Obama visited them? He is a curse to business, lieterally.

      Report Post »  
    • loriann12
      Posted on August 31, 2011 at 7:18pm

      Read this out loud to my husband, and my 12 year old son said he’s not got the golden touch, he’s got the poo touch. Everything he touches turns to poo.

      Report Post »  
    • Ookspay
      Posted on August 31, 2011 at 7:54pm

      @J Z S “Actually, this was subsidized by the tax payer at the direction of George Bush. Like many other decisions make by Bush…” WRONG The loan Guarantees were issued in 2009 through Obama’s stimulus money”. It is obvious that you suffer from “Bush Derangement Syndrome” and it is not surprising to see a liberal lie, let it go Bush, is gone!

      If you’re going to come around here slinging your BS, you better be ready to be challenged, doofus. Furthermore, you don’t seem to be too comfortable on this site. You seldom offer anything of value only trades and insults intended to inflame. If we were in a bar I would personally throw you out for being such an a-hole, please go away.

      Report Post » Ookspay  
    • mikem1969
      Posted on August 31, 2011 at 8:06pm

      another obahitlerstalinmao, liberal progressive failure. No surprise there. I want a refund. Take it out of the white house and conrgress paychecks.

      Report Post »  
    • TomFerrari
      Posted on August 31, 2011 at 9:57pm

      And, no, they are not closing down because of spending cuts by obama (the man who managed to exceed the credit limit on an unlimited credit card).

      They are closing down because of the plummeting prices of solar panels and because of Chinese competition, and because of expected consolidation in the industry.

      Do you even do ANY research before posting on here, JZS? Or, do you just post the opposite of the truth?

      Again, your finger-pointer-in-chief will be proud of you for being a good useful idiot and passing on lies and deception on his behalf. You’re such a good socialist democrat, just like obama.

      LOL

      Report Post » TomFerrari  
    • MIBUGNU2
      Posted on August 31, 2011 at 10:34pm

      @ J Z S
      Posted on August 31, 2011 at 5:45pm
      “Actually, this was subsidized by the tax payer at the direction of George Bush. Like many other decisions make by Bush, this company was never stable and never should have been considered for tax payer help.”

      You apparently did not read the article……….

      President Obama has held Solyndra up as an example of the the green energy movement’s ability to create jobs.
      In May of last year, Obama toured the facility and said “it is just a testament to American ingenuity and dynamism…..

      Report Post » MIBUGNU2  
    • jb.kibs
      Posted on August 31, 2011 at 10:47pm

      are you saying that obama hates green jobs?

      Report Post »  
    • MIBUGNU2
      Posted on August 31, 2011 at 10:52pm

      How can we believe Liberal Democrats ?? Every time their
      lips move it’s a Lie..or they are calling someone Racist,
      Terrorist and now we are a Lynch Mob..next week someone
      will call us something else, and by God they will jump on the
      wagon and they will all read from the same script…They are
      becoming so predictable !!

      Report Post » MIBUGNU2  
    • Rightsofman
      Posted on August 31, 2011 at 11:18pm

      Obama visits plants to demonstrate how business does under Socialism. Plants go down a short time later. Want four more years of this union guys? No plant, no job, no union dues, no power.

      Report Post »  
    • M 4 Colt
      Posted on August 31, 2011 at 11:25pm

      JZS i have herd some pretty TALL TALES in my time but you sir TOP THEM ALL with this tale, this company is closing down due to spending cuts made by Obama! Now that’s laughable, Obama like all other left wing progressives only know how to do one thing when it comes to tax payers money and that’s SPEND IT!!!!!! NOT TRY AND SAVE IT!!!!

      Oh ya one more thing JZE, i love how you progressives STILL place blame on George Bush for everything Obama does, lets see now were into Obama’s third year of his presidency, so please tell me WHEN does Obama start taking responsibly for his decisions, because this blame it on Bush thing is SO, SO, OLD NOW!!!!

      Report Post »  
    • Obama_Sham
      Posted on September 1, 2011 at 7:17am

      LOL @ all of you replying to JZS…

      Why do any of you listen to the former dishwasher at Red Lobster?

      Report Post » Obama_Sham  
    • old white guy
      Posted on September 1, 2011 at 7:26am

      you bet they will bail them out. they spent the money to start them. this so called green energy is a joke. the manufacture and shipping and installation of all so called green energy equipment such as solar panels, windmills etc is the same as any other produce such as a car, truck, ship, anything. in ontario canada wind energy requires about a 40% subsidy for every kilowatt generated. without the subsidy the wind power would not be possible it is way to inefficent and unreliable the same applies to solar.

      Report Post »  
    • smithclar3nc3
      Posted on September 1, 2011 at 8:01am

      Beck reprted this story over a year ago……And now it supposedly news……
      I’ve heard of monday morning quarterbacking but this is like thursday morning quarterbacking

      Report Post »  
    • drought1800
      Posted on September 2, 2011 at 6:19am

      when the federal govt can smell an amoeba fart from a mile away then they should probably downsize a tad

      Report Post »  
    • nick7
      Posted on September 2, 2011 at 4:59pm

      Bankrupt ? By basic definition this is when investors and vendors receive perhaps pennies on the dollars due. Sounds to me to be a a great example of white house cronies getting paid off to the tune of multiple millions. The stimulus has only filled the pockets of these crooks, and people are just talking about it. When this corrupt mob is voted out [unless the ultimate treason is commited and the individual vote is denied] will there be a DoJ with the courage to levy a just reward ?

      Report Post »  
  • WatchOutForTheRINOShills
    Posted on August 31, 2011 at 5:06pm

    Michelle Malkin’s website also has several articles posted about the “Reverse Midas Touch” of BHO:

    http://michellemalkin.com/?s=reverse+midas+touch

    Solar Company That Received $535 Million Stimulus Loan Guarantee Files Chapter 11

    http://michellemalkin.com/2011/08/31/solar-company-chapter/

    AboutContactArchivesRSSColumnsPhotos Michelle Malkin Restaurant Obama Cited Last Week as Bailout Beneficiary Going Out of Business

    http://michellemalkin.com/2011/06/09/restaurant-obama-cited-bailout/

    Just hope Tea Party Candidates are keeping track for their commercials…

    Report Post »  
    • Snowleopard {gallery of cat folks}
      Posted on August 31, 2011 at 6:02pm

      Thanks for the links, I will check them out.

      Report Post » Snowleopard {gallery of cat folks}  
    • Ookspay
      Posted on August 31, 2011 at 10:44pm

      We are ; )

      Report Post » Ookspay  
    • db321
      Posted on September 1, 2011 at 2:50am

      Wow! – Michelle’s right! BHO – MMMMM – MMMMM – MMMMMM does have a Reveres Midas Touch. I hope it works on all the corporations that gave to OB campaign as well.

      Michelle Malkin, is one Great American and a heck of a Reporter. I would hate to get on her bad side.

      Report Post » db321  
    • Vechorik
      Posted on September 1, 2011 at 1:40pm

      DB321 — Thanks for the laugh! I had almost forgotten about those misguided children.
      “mmm — mmm — mmm”

      Report Post »  
  • Dismayed Veteran
    Posted on August 31, 2011 at 5:02pm

    Bush did it

    Report Post » Dismayed Veteran  
  • mikenleeds
    Posted on August 31, 2011 at 5:02pm

    Green Jobs , what a big waste of trillions of dollars when we should be drilling for oil and building nuclear power plants .. will Americans ever learn?

    Report Post » mikenleeds  
  • FedUpAlready
    Posted on August 31, 2011 at 5:01pm

    Obama visiting a Plant of any kind, is the kiss of Death. Let’s face it, this administration is trying to take over, all American Industry, and run them as State owned like China!

    Report Post » FedUpAlready  
  • elosogrande
    Posted on August 31, 2011 at 5:01pm

    So Solyndra pissed away more than $700 million, at least have of which was our money, yet The President is touting them to the American people. Obama is a stupid ass, who doesn’t know anything, and doesn’t know how to do anything. He’s a leach feeding at the public trough, who continues to send our money to his friends to piss away on foolish projects.

    He is stupid, he is incompetent, and he has surrounded himself with…stupid, incompetent people. If he so much as opens his mouth to tell us what a great idea these green energy manufacturing plants are, he should be impeached immediately. I’ll give him the benefit of the doubt and say that he is not dishonest – he’s just a dumb ass.

    If the people running this country are the best that America has to offer, we are doomed. This ass of a president, who was elected by fools who should have known better, is truly a fool’s fool.

    Report Post »  
    • spirited
      Posted on August 31, 2011 at 6:04pm

      “ass of a president”

      ;^>Politically speaking….of course.

      Report Post » spirited  
  • RA0725
    Posted on August 31, 2011 at 5:00pm

    The only green from these programs is the green lining the pockets of these “venture capital” scammers. They set up shop and spend tons of government money on development to lure in investors, then close the doors on it. Take note in the article that the facility in China and technology sales are still on the table.

    Report Post »  
    • Bro Geo Too
      Posted on August 31, 2011 at 7:24pm

      An astute observation, RA.

      Report Post »  
    • Ex_Masshole
      Posted on September 1, 2011 at 3:43pm

      Absolutely! There is no doubt that the principals and execs will receive substantial severance packages.

      Report Post » Ex_Masshole  
  • WatchOutForTheRINOShills
    Posted on August 31, 2011 at 5:00pm

    One more victim of the BHO curse….he comes for a visit to “tout” the wonderful qualities of a business and hold it up as a great example of American Industry ….and it goes under…

    For other examples, check out this article from June, 2011:
    http://www.frugal-cafe.com/public_html/frugal-blog/frugal-cafe-blogzone/2011/06/09/the-obama-curse-like-brady-bunchs-bad-luck-tiki-necklace-toledo-restaurant-cited-by-potus-last-week-now-going-out-of-business/

    I agree. This would be a great commercial demonstrating his leadership excellence and great decision-making abilities…. Show his visit with speech, clapping, etc. followed by a slide of the press release announcing the close of the business. I do feel sorry for some of the small businesses that have gone under, though, but not the ones that received $535 million in loan guarantees of taxpayer money…once again, they have probably siphoned it off for some union fund to use in “supporting” a Democrat / Progressive candidate in 2012.

    Just Watch Out For The RINO Shills…

    Report Post »  
  • Bro Geo Too
    Posted on August 31, 2011 at 4:59pm

    Just another Obama screw up –what else is new?

    Report Post »  
  • TAKE_NO_PRISONERS
    Posted on August 31, 2011 at 4:57pm

    Green Jobs……What the Green Giant gets from Mrs. Green Giant.(take it anyway you want)

    Report Post »  
    • avenger
      Posted on August 31, 2011 at 5:04pm

      where did the green money go? who was the winner in this scam.we know it was not bernie maddoff.is it barney frank,franklin raines or chris dodd.follow the fkng money,somebody won huge !

      Report Post »  
  • KickinBack
    Posted on August 31, 2011 at 4:53pm

    Well, I guess we could always use the vacant facilities for paintball wars.

    Report Post » KickinBack  
    • jb.kibs
      Posted on August 31, 2011 at 10:50pm

      i will build you a paintball war factory for 535 million too… where’s our Fing money?!

      Report Post »  
  • Outlaw_Josey_Wales
    Posted on August 31, 2011 at 4:50pm

    WARNING WARNING WARNING
    DANGER DANGER DANGER
    President Obama is going to give his job speech next week in front of a joint session of congress. I bet he wants to spend hundreds of billions on green energy jobs. Just a big waste of tax payer money.

    Report Post » Outlaw_Josey_Wales  
    • darkrage000
      Posted on August 31, 2011 at 5:06pm

      yes, this is being discussed on another area of the site, if you would care to come over THERE to discuss his job killer speech.

      Report Post »  
    • ree758
      Posted on August 31, 2011 at 7:48pm

      And Exxon/Mobil just signed acontract with the Soviet union to drill there.Maybe Obama made it too hard to drill here

      Report Post »  
  • I.Gaspar
    Posted on August 31, 2011 at 4:46pm

    Come on…let’s just keep giving them more taxpayer money to keep them working.
    Who cares if it’s viable? Who cares if the management is incompetent?
    Let’s get with the program, comrades!

    Report Post »  
  • capitalismrocks
    Posted on August 31, 2011 at 4:39pm

    The Green Economy has created a whopping 20% unemployment rate for Spain…

    For every “green” job, 2 regular jobs were lost, great math!!! The US Admin ignores these failures and keeps on pushing forward.

    Right now there are tens of thousands of jobs that could be made immediately if the US Admin would pull back its EPA attack dogs and allow the US energy sector to thrive – more oil, shale oil, sand oil, fracking of Natural Gas (been safe in OK since 1949, no tainted water, no issues – its safe), drilling in Alaska, off the coasts (which foreign companies with horrible safety records are doing right now – would you prefer the US with a better safety record drill off the coast or a foreign country? Either way, someone will drill, I’ll take the US with the highest safety record. Instead of wasting money on solar non-sense, invest is CO2 capture systems for Coal Fire plants and help them increase output and reduce their CO2 emmissions, they are already doing it, do it more, stop killing our economy with green, if the US Admin will get out of the way of the energy sector, it will create so many new jobs, unemployment will come down, energy prices will come down and the US economy will soar high…

    So what is killing the US from Recovering the US Admin of 2008, tell the US Admin to stop tampering with the US energy growth and step out of the way, they are killing the US recovery. Can’t the US House of Congress stop the US Admin ?

    Report Post » capitalismrocks  
    • HKS
      Posted on August 31, 2011 at 5:02pm

      Knock me over with a feather, who could have seen this coming. Make a little bit of energy too expensive for anyone to afford and they won’t buy it. The Gaul, big AL can’t believe it. It‘s the tea party’s fault promoting all that fiscal responsibility and folks won’t go into debt to buy this stuff. The Gaul of these people and big AL needs a new pad in the Ozarks. We’ll have to legislate it, make it the law, OB see to it.

      Report Post » HKS  
  • microace
    Posted on August 31, 2011 at 4:36pm

    I want my money back!

    Report Post »  
  • John 1776
    Posted on August 31, 2011 at 4:36pm

    Anybody keeping track of how many companies that Obama visited that have gone bankrupt? I hope someone puts together a PAC ad that shows the before and after pics of the plants he visited.

    Report Post » John 1776  
  • doomytram
    Posted on August 31, 2011 at 4:33pm

    I wonder if the Solar Panel start ups were long on grant writing skills and very short on solar panel, and competing with China skills. This smells of corruption again with the Chicago guys friends.

    How much do you wanna bet he pivots like Magic Johnson and takes over and names the company Government Solar Panels and uses the slogan It‘s the Gov’t baby, we don’t have to make money.

    Report Post » doomytram  
  • netmail
    Posted on August 31, 2011 at 4:30pm

    Must have those pesky ‘Death Panels’ that killed those efficient Solar Panels. RIP Panels..RIP our tax dollars too. NEXT….

    Report Post »  
  • NOMOBIGDRAMANOBAMA
    Posted on August 31, 2011 at 4:29pm

    Business owners beware! Every company BHO supports (literally) and visits, goes belly up within a year! See a pattern here? Think windows.

    Report Post »  
  • tobywil2
    Posted on August 31, 2011 at 4:29pm

    it is called Alternative Energy because it cost more than primary energy. http://commonsense21c.com/

    Report Post » tobywil2  
  • Al Gored
    Posted on August 31, 2011 at 4:23pm

    Looks like Clean Burn Fuels ethanol plant has burned out. Caused their own high fuel price, corn.
    Solyndra, the 3rd U.S. solar company to go dark in a month. Sunnier on the other side of the planet.

    Hey, ‘Hurricane’ Obama, lets do more of this to stimulate the economy, create jobs and save the planet.

    What’s that?…Good idea, spend more money…Yup, not enough stimulus.

    Send the unions, lawyers and environmentalists over to China for a while. That should do it. While your at it, send three quarters of our Federal Government too.

    Report Post »  
  • SamIamTwo
    Posted on August 31, 2011 at 4:22pm

    They could not compete. China can…WalMart shoppers!

    Report Post » SamIamTwo  
  • 13th Imam
    Posted on August 31, 2011 at 4:20pm

    I know Rookie. Evil Dick Cheney and Halliburton caused Barry’s Solar Boondoggle to fail. Them and the Evil Mil, Ind, Complex.The Chinese/Obama Mil, Ind Complex seems to be working fine.

    Report Post » 13th Imam  
  • Gonzo
    Posted on August 31, 2011 at 4:19pm

    Oh no, the “Green Economy” is dissolving before our eyes, like the mirage it is.

    Report Post » Gonzo  
  • MODEL82A1
    Posted on August 31, 2011 at 4:19pm

    Shine on, You Crazy, Taxpayer-Subsidized Diamond!

    Report Post » MODEL82A1  
    • ozchambers
      Posted on August 31, 2011 at 4:43pm

      Another visit to a company by Obama that later “dies”. He’s racking up quite a string of kills. I bet he puts up pics of the CEOs on a wall like mounted trophies.

      Report Post » ozchambers  

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