Your Tax Dollars At Stake: Battery Maker A123 Running Out Of Runway
The irrational electrification exuberance claims another victim: Battery maker A123 Systems Inc is running out of money. A lot of it is your money. Says Reuters:
“The company, which received a $249 million grant from the Obama administration as part of a program to develop advanced lithium-ion batteries, said in documents filed with U.S. regulators that it “expects to have approximately four to five months of cash to support its ongoing operations” based on its recent monthly spending average.”
Reuters views A123’s issues as “a reminder of the struggles for a U.S. electric-vehicle industry still in its infancy and dealing with lower-than-projected demand.”
The wire service calls President Barack Obama’s goal of getting 1 million battery-powered vehicles on the road by 2015 “a target that is looking increasingly unrealistic.”
America’s best-selling plug-ins, the Volt, the plug-in Prius and the Nissan Leaf jointly sold 2,990 units in June. They were out-sold by a small sports car targeted at drifters, the Toyobaru hachi-roku, which sold 3,502 units in June.