Present Obama administration investments in the electric car business are as follows: Fisker is a California company that was granted a Department of Energy loan of $529 million (one-half billion plus), they plan to build cars in Finland and the two-seater car retail cost is $96,985. Sales are unreported but I have never seen one. Tesla, another California producer (they don’t call it the Land of Fruits and Nuts for nothing), obtained an Obamaloan for $465 million, their car costs $109,000.00 and they have sold 120 cars since start-up in 2009. Last but far from least is the Chevrolet Volt, produced by Government Motors, which is about 50/50 owned by the United Auto Workers and the government. So the taxpayers, in fact, financed the entire project. The Volt costs $40,000 as a basic unit, and since start-up GM has produced 1,536 cars. The only remaining issue is would you invest in one of these loser mistakes?
Lest you suffer the delusion that automobiles are the only losing proposition of this administration, let me enlighten you. You may be cognizant of Solyndra, but you actually have no idea how bad this all is. The mainstream has reported on almost nothing except that the taxpayers are on the hook for one-half billion dollars, $535 million to be exact. The loss of 1,100 jobs in this case is incidental. There is enough payola in the Solyndra affair to fill Sing Sing, that spa on the Hudson. $10,000 to the University of Chicago Medical Center, $53,500 to the president’s election campaign 2008. The Medical Center was where Michelle, Barry, David and Valerie were employed. Solyndra was the company that gave the California Democrats a $7,500 present and in which the Democratic Committee of California had shares. Why do you suppose that just days before declaring bankruptcy Solyndra was able to re-negotiate their loan guarantee and chucked the taxpayers under the bus?
From this administration’s beginning, there have been 13 solar based loans. Every single one of them has been a loser and the two just made will also go belly up sooner than you think. Notable September losers have been Evergreen Solar with a loss of $5.3 million and SpectraWatt with $500,000. In fact, of the 13 outstanding solar power energy loan guarantees none, to our knowledge, is today operational. Information on losses has been removed from public records.
We are sorry to report that many lobbyists will take it on the chin in 2012 as McAllister &Quinn, McBee Strategic and the Rice Hadley Group (Condoleezza’s business) lost their Solyndra account. Total administration solar loan guarantees now exceed $6.5 billion. Not one has been repaid, shown a profit or produced reasonable sales in comparison to the invested monies.
The latest loan guarantee was to Sun Power (SPWR-NASDAQ) for $646 million to produce solar panels in Mexico. To accomplish that they opened a production plant in Mexicali, Mexico. Loans for cars to be made in Finland and now loans to make solar panels in Mexico … “Pass the Jobs Bill Now”! Wait – Sun Power has a capitalization of $800 million and a debt of $820 million. So we are in the process of loaning a bankrupt company $646 million that on the day of the loan reduced the value of the government loan to $626 million. Furthermore, the debt load of Sun Power just exploded to $1 billion 466 million and assets of $800 million, or a net loss balance of $666 million. Let me guess – you would immediately invest in this mistake? Didn’t think so!
The very next issue is Tonopah Solar that was part of the Dr. Chu-issued $1.383 billion loan guarantees made on the last day of September. Oh, I almost forgot. The Sun Power loans are reported to create jobs at a cost of $23 million per job. “Pass the Jobs Bill Now”! The Tonopah loan is for $737 million and according to their Internet site will create 50 new jobs – simply outstanding! That is better than the others, at only $1,474,000 per job created. Please. Please, someone, send Dr. Chu a calculator! Just by the way, Tonopah Solar is a subsidiary of another subsidiary and is to build this plant on technology licensed from a third source. No plant like this has ever been built so you can understand why the private sector is leery of financing it.
That brings us to ethanol…