A123 to create 14,000 jobs in MICHIGAN!

[Patriot]

A123 to create 14,000 jobs in MICHIGAN!!!

BUSINESSWIRE.

A123Systems Announces Plan to Build U.S.-based Lithium Ion Battery Mass Production Facilities
Planned $2.3 Billion facilities will support aggressive expansion plan to deliver energy storage systems to A123’s multiple OEM customers in the Electric and Hybrid Electric Vehicle market

WATERTOWN, Mass.--(BUSINESS WIRE)--A123Systems today announced it has submitted an application under the U.S. Department of Energy’s Advanced Technology Vehicles Manufacturing Incentive Program to qualify for $1.84 billion in direct loans to support the construction of new world-class lithium ion battery manufacturing facilities in the United States, with the first construction location in southeast Michigan.

If A123’s application is approved, this program would enable the company to dramatically expand production capacity in the United States, with full production volumes designed to supply battery systems for five million hybrid vehicles or half a million plug-in electric vehicles per year by 2013.

"We’re entering an exciting new phase for the automotive industry where we increase the electrification of vehicles, reducing consumption of gasoline through advanced batteries. This new facility would greatly accelerate this change and help ensure that the American economy replaces its dependence on foreign oil with reliance on advanced, homegrown batteries,” said David Vieau, A123Systems President and Chief Executive Officer.

At full operation, A123 expects the combined plants would occupy as much as 7 million square feet and create over 14,000 jobs. These plants would produce battery cells and systems to meet the needs of A123’s broad automotive customer portfolio, which currently includes over seven vehicle manufacturers and 19 vehicle models ranging from HEVs (hybrid electric vehicles) to EVs (electric vehicles).

“Chrysler’s commitment to E-drive industry leadership has led us to a strategic relationship with US-based A123Systems as one of our key suppliers supporting production development of ENVI electric vehicles. Chrysler strongly encourages the efforts of A123Systems to develop and mass produce energy storage systems in the United States” said Lou Rhodes, VP of Advanced Engineering for Chrysler LLC and President of ENVI.

"At GM, we see the development of vehicles powered by electricity as key to the transformation of our industry. And advanced battery technology, is at the heart of this transformation," said Bob Lutz, GM Vice Chairman of Global Product Development. "A123's proposal to manufacture advanced battery cells and packs right here in the United States is a positive development for our industry and the nation."

“At Project Better Place, we truly believe that there is a path forward for the US to lead the world into a 21st sustainable century led by American innovation. Converting our national fleet of cars from fossil fuel dependent to fully electric revives our core industrial power, addresses key national strategic goals, and starts to address the biggest global risk we have – climate change. It represents a historic opportunity for the US to re-engineer its economy and its global reputation. We look forward to leading the transformation to sustainable mobility with partners like A123 as part of our mission to end the world’s addiction to foreign oil,” said Shai Agassi, Founder and CEO of Better Place.

A123 was born out of the research labs of the Massachusetts Institute of Technology and was funded initially with a $100,000 grant from the U.S. Department of Energy in 2001. Existing A123 customers include AES, BAE Systems, Black and Decker, Cessna, Chrysler LLC, General Motors, Project Better Place, and Th!nk.

GREEN CAR CONGRESSS

http://www.greencarcongress.com/2009/01/a123systems-see.html#more

 

[frodus]

I hope with that amount of jobs that they can get economy of scale and start offering the cells to more than just the big businesses

 

[mvadventure]

This'll PO a few folks but...
If the UAW gets their foot in the door it's gonna be bedlam. If they put it in any of the Southern States labor would be not only plentiful but grateful.
Mike

 

[dogman dan]

I agree, but also think some of those southern workers are underpaid. Great for the locals if the michigan workers have big lunchboxes though

 

[mvadventure]

A employer, when left alone, will pay the least wages for the best worker possible, a worker will work for the most wages/benefits and the best working conditions possible. When the supply of labor is down, wages are up. Exactly the opposite is normaly true, lot of labor, lower wages.

This doesn't alway mean substance wages. I always encouraged my employees to strive for higher wages by providing higher quality performance. When a good employee receives above average wages they spend more, have more bills and become, more or less, put into a position of loyalty to you as no one else will meet their wage requirements.

A factory worker deserves a living wage and the product they manufacture needs to have a market sufficient for that wage to be paid. When wages are too high the market for the product evaporates (priced out of market). The "Big Three" sacrificied quality in their product to pay wages/benefits. Look at the upholstery in a comparable sized GM car vs quality Japanese Toyota or Mazda. Frequently the quality of the import is better, the MPG is better and the MSRP is less.

I'm a gonna let this go.
Mike

 

[dogman dan]

Very true, even the slave wages jobs here on the mexican border went south of the border long ago, remember the big sucking sound? Nowdays, even the other side of the border jobs have gone elsewhere since 5 bucks a day was too much to pay labor. What can ya do about it? I don't know. Being this close to the border has cost me about 5 bucks an hour, every day I worked since my first job in 1970. But I like it here so I stayed. Back then it was cheap to live here.

 

[recumbent]

Being this close to the border has cost me about 5 bucks an hour, every day I worked since my first job in 1970. But I like it here so I stayed. Back then it was cheap to live here.

Aren't realestate prices and rent considerably cheaper to somewhat balance the difference? Whats the average temperature in Newmexico in January BTW 8) ?

 

[TylerDurden]

They're giving away houses in Detroit.

http://money.cnn.com/2009/01/08/real_estate/thousand_dollar_homes/index.htm?section=money_latest

http://www.freep.com/article/20090110/BUSINESS04/901100302/1002/rss02

 

[dogman dan]

Much cheaper that many other places, but no cheaper than 200 miles north in Albuquerque, where carpenters made 10-15 bucks an hour. Here in Less Chances NM It was more like 4-8 bucks an hour. Illegals had most of the work, and since they were off the books, they worked for a lot less than minimum wage. Good thing my wife has had a good job at the university for 30 years. The only good paying construction I ever did was by traveling away from the border. January used to be colder, with most days barely getting to 50 F. Yesterday it got to 70. The bike commute was delightfull. Spring is here for us.

 

[Patriot]

Just thought I'd post an update as to what A123 is up to.

This will give you an idea as to why GM is happy A123 is building a big plant right down the road.

http://gm-volt.com/2009/03/11/100-fold-lithium-ion-battery-breakthrough/