How to Get Free Money

First, be a capitalist.

Second, to raise your chances even further, be a capitalist specializing in schemes to perpetuate the lifeblood of the system, cars-first transportation.

Finally, hold out your hand.

Even if your product is patently stupid, over-complicated, and downright defective, you will collect.

Cue Dire Straits’ old song and witness the Zerobama Adminstration’s latest gift to A123 Systems, maker of broken and exploding batteries for cars that run on electricity made from coal, nuclear, and natural gas:

Lithium-ion battery maker A123 Systems Inc. has received an extension on its $249.1 million grant from the U.S. Department of Energy. A123 received $127 million of the DOE grant by the end of 2011, according to the filing. The grant requires the battery maker to match each dollar used from the grant. The extension is designed to allow A123 to use the funds before they expire.

The filing fell on the same day that an A123 battery was linked to an explosion and fire at a prototype testing lab at General Motor Co.’s Warren Technical Center. GM confirmed that a lithium-ion battery cell leaked chemical gases into the lab, causing an explosion. The battery itself remained intact, according to a statement by the automaker.

The incident comes after a series of setbacks for the battery maker. In March, A123 posted a quarterly loss of $85 million for the fourth quarter of 2011, after Fisker Automotive stopped battery orders resulting from production problems. A123 suffered more bad news after a Fisker Karma plug-in hybrid sports car with an A123 battery failed during a test by Consumer Reports magazine — which led to the announcement of defective batteries. On March 26, A123 reported that five automotive customers received batteries with potentially defective cells manufactured in Livonia. It said it would replace the batteries, which would cost the company $55 million.

A123 is also at the center of a class action lawsuit filed by shareholders.

[Source]

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