FREMONT (KCBS) — A highly-touted Fremont solar company has scrapped its expansion plans.

Instead, Solyndra will be laying off 150 workers.

KCBS’ Mike Colgan Reports:

The expansion plans were touted by President Barack Obama when he visited the company in May.

“When it’s completed in a few months, Solyndra expects to hire a thousand workers to manufacture solar panels and sell them across America and around the world,” President Obama said.

So what went wrong? Shyam Mehta, a senior analyst with Greentech Media Research said the struggling economy played a huge role.

“Since the first quarter of 2009, enterprises have taken a huge hit. They’ve dropped by almost 50 percent in the span of five or six months,” Mehta said. “And that’s the same time that Solyndra started manufacturing these panels in earnest. They were concerned about these huge price declines, which put a lot of pressure on them to lower costs.”

Solyndra, which received a $535 million loan guarantee from the federal government, is projecting strong sales next year.

(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

Comments (10)
  1. Bwuh says:

    A chilling vision of things to come…get ready for more similar stories such as this one.

  2. A Rod says:

    We got our cap and trade
    just a matter of time..
    before we go down the tubes..
    big time…

  3. Jim says:

    That is a lot of money spent with zero results

  4. Fred says:

    Here we go again borrow money from the government (our money) to fund another company that will go belly up. How does this help the people in the U.S. How do we keep jobs if we loan large sums of money and they end in failure

  5. Homer Simpson says:

    Another reason why government and business should not be together. Solindra should have gone through the process of acquiring VC money with a feasible business plan like most other businesses .

  6. Fef Up says:

    Stimulus money that went NOWHERE! They should pay it all back and goes tits up from there. So uch for creating more jobs! They will lay off more than they hired! Obama – stay out of private business!!!!

  7. absolutecrazy says:

    Expect more layoff notices in the thousands in December as corporations close their calendar year. And now that Jerry Brown is elected governor, expect more taxes and fees across the board.

  8. Budm says:

    Obama can always print as much money as he wants, hail king OBAMA.

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