.
Feedback

Solyndra Shuts Down, Files for Bankruptcy

Employees have been asked to leave the facility in Fremont.

An alternative energy company in Alameda County that was paid a visit last year by President Obama is closing up shop.

Solyndra is shutting down its Fremont operation and is planning to file for bankruptcy, according to a statement from the company.

Approximately 1,100 full-time and temporary employees who worked for the solar products manufacturing company were abruptly told Wednesday morning they no longer have a job.

Founded in 2005, Solyndra’s Fremont facility encompasses approximately 800,000 square feet. The company has offices in the United States, Switzerland, Germany, Italy and France, according to its website. 

In May 2010, President Obama visited the plant and touted it as "a testament to American ingenuity and dynamism," according to media reports.

The company received stimulus dollars as part of a $535 million federal loan guarantee in 2009 in addition to venture capital support, according to the Wall Street Journal.

The funding couldn't keep the company afloat.

"Regulatory and policy uncertainties in recent months created significant near-term excess supply and price erosion," said Brian Harrison, CEO and president of Solyndra, in a press release.

"Raising incremental capital in this environment was not possible. This was an unexpected outcome and is most unfortunate."

Robert Marsella worked at Solyndra for more than two years. The engineering program manager said he and other workers first noticed something amiss when they couldn't access their company email accounts on Tuesday night.

Things became more ominious on Wednesday. Marsella was commuting from his San Francisco home when a vendor told him he wasn't allowed to enter the Solyndra property. He was also contacted by worried co-workers.

"At that point, we knew something was fishy," he said.

When Marsella arrived at the Fremont facility, he and others were taken to the Human Relations Department. They were given a packet, explaining what was happening.

There were also "all-hands meetings" during the day for different shifts.

Marsella said he had heard over the past few months that Solyndra was looking for additional funding. However, he thought any financial constraints would happen next year.

"Today's occurrences were totally out of the blue," he said.

Marsella said the reaction at the Fremont facility ranged from employees who took the news in stride to those who were visibly upset.

"It's a disappointment. We had a great thing going," said Marsella. "I worked with a lot of talented people. It would have been nice to see the company take off like many of us hoped it would."

Marsella added the plant closure could have an adverse effect on some of the Obama administration's plans for jobs and green technology.

"The industry as a whole took a hit today," he said.

Marsella noted he is in a better position than some of his former co-workers. He's 29, single and has been in contact with other firms in the business.

On Thursday, state Assemblywoman Mary Hayashi, D-Hayward, called Solyndra’s treatment of its 1,100 workers a "violation of public trust." She pointed to the company’s receipt of $535 million in federal funds that was supposed to help Solyndra compete in the global marketplace.

“It’s outrageous that Solyndra locked out 1,100 employees without any warning, leaving them with nowhere to go,” said Hayashi. “This is unacceptable for a corporation that received $535 million in government funds at a time when we are cutting health care for seniors and children.  It’s a violation of federal and state law when you squander taxpayer money and then treat workers in such a disgraceful manner.”

Under federal and state law, businesses undertaking a mass layoff are required to give the employees at least 60 days advance notice.  By ignoring the law, Hayashi said, Solyndra did not allow employees any time to prepare for their job loss, such as seeking other employment and reconsidering major financial decisions.

Newsletter & Alerts

Get the best stories each day and important breaking news

Subscribe

Not from Newark Patch? Find your Local Patch »

Nika Megino (Editor) August 31, 2011 at 04:08 pm
Wow. Mike, if any of the people you know would like to share their story with Patch, we're willing to meet/talk with them. I can be contacted at nika.megino@patch.com.
Daniel August 31, 2011 at 04:42 pm
We drove by there just yesterday. I commented they wouldn't be in business very long. Unfortunately I was right.
Daniel August 31, 2011 at 04:44 pm
"Is this the plant that Obama visited last year?"
Same plant, same Obama.
Nick August 31, 2011 at 05:40 pm
Unfortunately typical American company, rob the government and go to the government for protection.
clocktower08 August 31, 2011 at 05:58 pm
1,100 more local residents out of work. This is just sad.
Steve Shambaugh August 31, 2011 at 08:21 pm
I watched that new "ugly as a skunk" building being built every day I travelled down 880 during my commute. What amazed me was the way in which the money was spent on construction. There were multiple shifts working around the clock and weekends too, at full union scale wages no doubt. (I work weekends so I know), security guards on site 24/7 with flood lights like a ball park burning all night long even on those rare nights when construction was not taking place. When compared to their overseas competetion, there was no way this venture was going to work. I'm embarrassed by my own government that we sank so much money into this. And Obama won't say a word I guarantee it.
So now we've all got to look at this giant ugly building right next to the freeway for years to come. And empty at that. Sad yes, but entirely predictable unfortunately.
Tim August 31, 2011 at 08:28 pm
Yet more proof that the Obama stimulus was a sham and that the quote regulatory and policy uncertainty from this administration is stifling economic and job growth. One can only hope the man loses his job in 2012.
Daniel August 31, 2011 at 09:39 pm
Solyndra - Big hat, no horse.
pete September 1, 2011 at 12:08 am
Has anyone look at where had all the money gone. May be it is time to look at the packages that exexutives there are getting?
David September 1, 2011 at 01:02 pm
Could have saved money by just paying every worker $200k over the past 2 years. Over a half-billion tax dollars torched for a predictable failure. The Spanish have been working on "green jobs" for the better part of the decade and study after study showed that over 2 jobs were lost for every "green job" generated. No doubt it's just as bad here.
David September 1, 2011 at 01:05 pm
Maybe it's time to look into why Solyndra got a sweetheart deal--how much money did execs contribute to Obama and congressional democrats who bypassed the usual review routes for these 1%, taxpayer-backed loans.
Paul Brewer September 1, 2011 at 01:39 pm
HEY LIBTARDS....JUST WAIT.....OBUMMER WANTS "MORE COWBELL"
Mike September 1, 2011 at 01:56 pm
http://www.thebeginner.eu/business/all-in-green-business/575-germany-the-worlds-first-green-economy
Going green working in Germany
Mike September 1, 2011 at 01:58 pm
Nice intelligent reply and in all caps. After republicans gut our schools, totally, everyone will be as witty as Mr Brewer
jerry September 1, 2011 at 02:22 pm
Mike, it isn't the republicans that gutted our schools, if you notice its the democrats in
Sacto that have the gutting knife and are forcing feel good programs on our school system, never mind that they can't write or spell, or do grade level math, but we want them to know all about homosexual heros.
David September 1, 2011 at 03:37 pm
Mike, remind me which party has been running this state for the most of the past 40 years...when was the last time the Republicans controlled the Legislature--you know, the part that writes and submits a budget?
David September 1, 2011 at 03:39 pm
There's no evidence in that article that "green jobs" are higher in number than the jobs they displaced. There is ample evidence that in Spain, a country with ample "green" resources (wind and especially solar), that over 2 "non-green" jobs were lost for every "green" job "created."
David September 1, 2011 at 03:41 pm
Setting aside any study, does any part of your common sense register that by increasing commodity costs (i.e. electricity), we would create jobs? Higher input costs simply mean that less productive companies and workers go out of business or move to where input costs are lower, i.e. China.
Nadja Adolf September 1, 2011 at 06:09 pm
The reality is that the market for solar panels has been almost entirely subsidy driven. They are neither productive enough or efficient enough for installation unless the purchaser receives a subsidy or an indirect subsidy via a tax or other credit. Their manufacture is also highly polluting; for grins and giggles do a Google search on solar panels and pollution in China.
If this country were serious about green energy, we'd be putting cheap, easily built windmills on top of every house in any area with at least low moderate wind speeds. Free trade as interpreted by the government isn't. We open our markets to goods from protectionist countries like India and China. Then we turn around and enforce - or even expand - on their anti-competitive laws. This week the US government nailed Gibson guitars for using imported rosewood and ebony from India - although the Indian government does NOT interpret their export law in a fashion to restrain Gibson from making guitars. (India requires that finished goods made from lumber may be shipped, but not raw materials, for the furniture industry.) Your next Gibson will probably be made in Mumbai or Delhi.
jerry September 1, 2011 at 06:15 pm
Thatsthe socialist government that the social democrats voted in under Obama and his so called appointed czars
Fran September 1, 2011 at 08:31 pm
Meanwhile at the ranch...at least $31,000,000,000 and possibly up to $60 BILLION has been lost in Iraq and Afghanistan over the past decade due to waste and fraud. Hmmm.
Nadja Adolf September 1, 2011 at 08:42 pm
And don't forget all of the new opportunities for corruption opening up in the new third war, Libya. It's past time to bring the troops back, cut off foreign aid, and let the people in those countries decide what to do on their own. One reason that the US is so hated is that the locals see foreign aid being to enriched and arm their corrupt dictators and secret police. We should take care of our own business here before we decided to determine how other people live and who rules them.
Nadja Adolf September 1, 2011 at 08:44 pm
Don't blame me - I voted for Ron Paul in the primary because he was the only candidate in 2008 who suggested simply bringing the troops home. I'll vote for him again, and for the same reason. The only candidate who isn't either a religious nut job or a proven economic incompetent from any party. The only candidate who understands that Iranians hate us because we overthrew their democratically elected government in the 1950s, inflicted the Shah on them, and funded his secret police so that the religious extremists wound up running the country.
Nadja Adolf September 1, 2011 at 08:45 pm
I guess the only thing one can say about government waste, mismanagement, and corruption is that the US provides equal opportunities at all levels of government. From public service to self service.
Michael McClary September 1, 2011 at 08:59 pm
Actually solar panel prices are getting down to where they DO make economic sense in two situations:
- New construction on sites where the price of running grid power is in the tens of thousands of dollars. - Small loads where the price of panels and related stuff (batteries, controllers) is lower than that of running grid power. (Examples: Yard lights, road signs and billboards, emergency telephones.) IMHO Solyndra made a big error: They priced their product slightly HIGHER than the competition they were trying to displace. (If they HAD to price that high they shouldn't have started up in the first place. If they could have amortized over a longer period and gone for fast nickels rather than slow dimes, they would have been fine.)
David September 2, 2011 at 01:04 am
$6B/year. Which is 0.15% of the bloated Pelosi/Obama/Reid (i.e. POR) budget. Or 0.85% of just the increase they put into the budget in the name of "stimulus." Meanwhile at the ranch, indeed.
David September 2, 2011 at 01:05 am
There is no such thing as a waste-free government. Therefore, government should be kept as small as possible to minimize that waste, which is after all, our money.
Fran September 2, 2011 at 01:26 am
So if $60 billion lost to unscrupulous contractors is a mere pittance, then why is everyone so upset about this particular $500 million loan to solyndra? And we are spending a total of $206 billion on contracts and grants in Iraq and Afghanistan. This doesn't bother you?
David September 2, 2011 at 10:29 am
Fran, 1) the article is about Solyndra. 2) if you want to make it a larger discussion about "government waste" you'll find more waste in 1 year due to Medicare/Medicaid fraud than you'll find waste in gov't contracts in Iraq/Afghanistan over the past 10. 3) P-O-R has increased the discretionary federal budget by 100X the annual Iraq/Afghan "fraud amount" in one year for the "stimulus" - for projects like Solyndra which has (predictably) turned out to be a complete waste. 4) I've never stated that Iraq/Afghan "didn't bother me"--I've stated numerous times that Afghanistan is a complete waste, Iraq marginally less so (only because I think Iraq can be a relatively normal, middle class country and a good example to the less-crazy citizens of neighboring countries).
Dave September 11, 2011 at 10:00 pm
More cowbell! That's priceless, Paul! And so tuned in to what the Obama regime will most likely do in the face of this disaster. "What, the first stimulus didn't work!? Well, let's just spend MORE good money after bad and make our FIRST mistake all the more worse than before!"
Note Article
Just a short thought to get the word out quickly about anything in your neighborhood.
Share something with your neighbors. Write a new post... What's up? Make an announcement, speak your mind, or sell something
James Nelson June 16, 2013 at 09:03 pm
Geoff, I did not know that Fathers could be part of the PTA, too. Just did some research about theRead More PTA and am now a little wiser on the Subject. Since your a member of the PTA, have you thought about registering your School with the Coke Rewards program? They allow members to donate points to Schools and out of every school in Newark the only one registered with them is St Edwards. Basically people go to the MyCokeRewards website and input the codes found on the caps and receive points then can use those points to redeem rewards or donate supplies to Schools. It's an interesting Program, if you have some time you should check it out! It's a way to lessen the burden of limited funds for the next school year.
Rob Sorensen June 16, 2013 at 09:28 pm
I'd suggest working thru the Principal at NMHS with less speculation. I too was involved with PTA,Read More Newark Schools Fdn, Jaycees and other non-profits. Best practices are that the one handling, depositing money not also be the one keeping books. A great volunteer shouldnt be put under suspicion without there being group neglect. By-laws and an active Board can cleanup this miscommunication. The school Principal is the MOD.
Dan June 17, 2013 at 07:40 am
I agree 100% with CT
Mona Taplin June 15, 2013 at 06:23 pm
Good response Teddy, and truth.
Bong Sativa June 17, 2013 at 05:57 am
The more likely explanation is that the vast majority of Newark Police officers lack the requisiteRead More aptitude & agility necessary to fill shopping bags with groceries & didn't want to do anything to further embarrass themselves while under the scrutiny of the bewildered shoppers like James.
Teddy June 17, 2013 at 12:12 pm
Bong Sativa maybe you can meet Officer Indica.
Shimadog June 15, 2013 at 10:10 am
Could it be that, because busloads of inner city non resident children jam the place, someone wiselyRead More decided to make the hours available to Newark taxpayers first?
Audrey June 15, 2013 at 10:27 am
Yes they are walking as I write this! but it is not to late to sponsor them! please!!!
Mona Taplin June 13, 2013 at 04:03 am
This probably sounds heartless, but it sounds like this house should be condemned before a tragedyRead More occurs. I doubt if any organization can bring it up to code because of the cost. It's really sad to see this happening to a working person in this country.
Adam Moe June 13, 2013 at 09:47 am
I'm not sure if your mom will qualify but there are lines of credit out there that she can get as aRead More home owner. It will require her to have the income to pay back small portions at a time. Not trying to make it harder just trying to help. See about it online or let me know more and I'll see what I can do to help.
Teddy June 16, 2013 at 07:00 am
Mona Taplin you are right on re: all your remarks.
Mona Taplin June 16, 2013 at 02:33 pm
Whether or not he runs doesn't run has nothing to do with this either. Just letting him know heRead More will have my support.
James Nelson June 16, 2013 at 03:27 pm
Mona, Why do you have to keep bringing up Politics? Gah! I was just asking Mike a question, it'sRead More called Conversation. If you MUST know, I have a rousing suspicion that our paths have crossed in the past and if he's the same Mike Bucci who lived on Toulouse back in the 90's, then it would confirm that he is indeed the same guy I suspect he is.
Tony June 16, 2013 at 05:33 pm
Thanks James!, You know it's amazing when somebody puts their own personal time to learn andRead More understand something and then you share it... I would have been more then glad to explained myself in more detail face-to-face because I may learn something myself but like a marriage you don't get on here and start posting every little detail about you and your wife and I'm not going to get on here and start posting every little detail about my past employer`s. So to whoever flagged me you could have simply posted a disagreement and I'm open-minded and can admit when I make a mistake...I would've simply deleted my post if you could've proved it wrong.
James Nelson June 5, 2013 at 09:11 pm
Landline? That's like so 15 years ago! People still do home telephone services? Wow!
Dina Murtaza June 9, 2013 at 08:41 am
Yes I have a cell phone and a landline when I am working. Lots of people have it as a 2nd phone.Read More Found out the people working on the lines accidently cut off the phone lines.
Audrey June 6, 2013 at 05:36 pm
have they been claimed yet anyone know??
Anna Locke June 7, 2013 at 09:17 am
UPDATE! Just got a call this morning from a neighbor of the man who owned them. The gentleman diedRead More Mon or Tues and the poor dogs hadn't been well taken care of for years - slept outside, no affection, etc. Long story short - the neighbor wants to adopt them! YAY! <3
Anna Locke June 5, 2013 at 01:35 pm
Make sure to post on Facebook. He may have a microchip...hopefully. You can take him to CentralRead More Vet to check. Good luck! I just found two at the Lake Monday evening.