Government-Backed Battery Maker Files for Bankruptcy

An electric-car manufacturer that received $249 million in federal funds from the 2009 stimulus bill filed for bankruptcy Tuesday giving Republicans fresh political fodder for the home stretch of election season. A123 Systems was among 30 battery and electric drive companies to receive federal funds during President Obama's tenure, and is now the second to go bankrupt, according to the Washington Post. Dan Lestikow, public affairs officer of the Department of Energy explained on the department's website that A123's factories will be taken over by Johnson Controls, a U.S. manufacturer, adding that "in an emerging industry it's very common to see some firms consolidate with others as the industry grows and matures." Gov. Romney, however, portrayed the bankruptcy as "another failure for the president' disastrous strategy of gambling away billions of taxpayer dollars on a strategy of government-led growth that simply does not work."

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