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Shields Falsely Accuses O'Bannon Of Rewriting History Displays His Ignorance Of Qimonda And High Tech

It would seem that Democrat candidate for the 73rd House Seat Tom Shields is accusing Incumbent Delegate John O’Bannon, MD of rewriting history. One would think that Shields would at least check his facts before throwing such an accusation at his opponent. Delegate Joe Morrissey, in arguing for accelerated grant payments said the plant might close without the $14 million grant advance. Morrisey failed to mention that 2 months before his attempt to give money to Qimonda, they sold off a large piece of their 200mm chip equipment for $289 million. He also failed to mention that this money went to the parent company in Germany, who was struggling due to the sharp fall in computer memory prices.
Morrissey mentioned that the Qimonda plant investment in Henrico County was $3.2 billion. The money Morrissey was requesting for 2009 was a $5.4 million payment scheduled to be paid to Qimonda by the State in 2011. That payout would amount to around .1% – one-tenth of 1 percent of the investment. The equivalent of a shot glass of water to the Titanic. IF the $5.4 million were equally divided between the 2700 employees, each worker would get $38.46 extra each week in 2009.

The question we should be asking is, do Tom Shields and Joe Morrissey really think $38 per employee was going to save Qimonda? That alone is reason enough to keep Tom Shields at University of Richmond and replace Joe Morrissey with his opponent Michael Gage. Obviously math is not their strong suit.

Shields also failed to mention that Qimonda was desperately seeking a $418 million bailout from the EU in December, 2008 which failed because, as a Reuters report put it:

“Nobody can save a company whose owner does not want to save it,” he told Saechsische Zeitung, a daily published in the Saxony state capital Dresden, where Qimonda’s main European site is located.

In mid January, 2009, after being denied the $418 million bailout, Oimonda Germany, the parent company of the Henrico plant, filed for insolvency. Since the payment Morrissey was seeking would not have been paid until 2009, and the company needed $418 million, the payment, even if the Morrissey backed Amendment had passed, would have not even been made prior to the bankruptcy filing in January, 2009.

Sorry Tom, sorry, Joe. This is a poor attempt to create a false and dishonest issue for your own political gain. I would urge everyone to show your disapproval of these false attacks and send a $38 donation to Michael Gage and John O’Bannon.

If you want to know the real reason Qimonda failed, I suggest you research the falling prices of RAM, the old technology at Qimonda – Joe wanted to save the 200mm chips, which the factory was making. They were trying to “upgrade” to 300mm production, which costs billions of dollars, and already the 450mm chips are the latest and greatest. Falling chip prices and a bad economy along with management that didn’t care doomed Qimonda. Add in a plant in need of constant upgrades as technology advances, and the Qimonda plant was doomed.

Shields also failed to mention the main reason Morrissey’s money give away was turned down. Oimonda was not the only company scheduled to receive millions in payouts. Do you think the others would not go to the State wanting the same treatment?

And if Morrissey and Shields were concerned with jobs in the Commonwealth, wouldn’t it be better to condemn Governor Kaine for letting the Apple Computers plant get away and go to North Carolina?

If you would like further information on the facts of this post, please feel free to visit the following links:

Morrissey and Cox speak on amendment to accelerate grants.

Plant Shutdown

Qimonda Revenue expected to fall 40.7% in 2008, making Morrissey’s tax revenue expectations incorrect.

Qimonda sells 200mm manufacturing equipment in 2007, sign of financial problems.

Nobody can save a company whose owner does not want to save it.

About Tom White

Tom is a US Navy Veteran, owns an Insurance Agency and is currently an IT Manager for a Virginia Distributor. He has been published in American Thinker, currently writes for the Richmond Examiner as well as Virginia Right! Blog. Tom lives in Hanover County, Va and is involved in politics at every level and is a Recovering Republican who has finally had enough of the War on Conservatives in progress with the Leadership of the GOP on a National Level.

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Tom White Says:

Nothing is more conservative than a republican wanting to get their majority back. And nothing is more liberal than a republican WITH a majority.

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