Whoops, more taxpayer dollars headed down the green toilet.
Abound Solar, which received a $400 million federal loan guarantee to make solar panels, is laying off 70 percent of its workforce and delaying a new factory in Indiana, according to the Denver Post.
President Obama, during a July 2010 radio address, had such high hopes:
Abound Solar Manufacturing . . . will manufacture advanced solar panels at two new plants, creating more than 2,000 construction jobs and 1,500 permanent jobs. A Colorado plant is already underway, and an Indiana plant will be built in what’s now an empty Chrysler factory. When fully operational, these plants will produce millions of state-of-the-art solar panels each year.
Once the layoffs are complete, the company will have 120 employees, not 1,500. The Indiana plant was supposed to be operating by the end of 2012. Abound says it will update everyone on the plant’s future sometime in the middle of 2013.
The company has already run through $70 million of its loan guarantees and can only start tapping the rest once it starts making solar panels again.
Somebody please tell me the business model for a company that gets $400 million in free money and still can’t sell its product.
There is no business model for this.
The company’s CFO says unlike Solyndra, Abound’s solar panels are cost competitive.