US battery maker A123 goes bankrupt – Johnson Controls to buy its automotive assets for US125 mil

US battery maker A123 goes bankrupt – Johnson Controls to buy its automotive assets for US125 mil

Having filed for bankruptcy protection, US electric-car battery manufacturer A123 Systems is set to sell its automotive assets off to auto parts maker Johnson Controls, which will buy A123’s auto business for US$125 million.

The sale includes A123’s lithium-ion battery technology, two factories in Michigan, cathode ray factories in China and an equity interest in a Chinese battery company, according to news reports.

A123 supplies batteries for the Fisker Karma, and its power units were also set to feature in the upcoming Chevrolet Spark EV, which arrives in the market next year. The company also has contracts to make batteries for BMW.

The battery maker has been struggling for several years, with lackluster sales of EVs in the US translating into huge losses for the company. It also ran into more trouble earlier this year after a costly recall of its batteries, the reports add.

The company had earlier said that it might not be able to stay in business unless it received additional financing. Only two months ago, it announced a US$450 million lifeline from Chinese auto parts maker Wanxiang Group, but the deal didn’t materialise.

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Anthony Lim

Anthony Lim believes that nothing is better than a good smoke and a car with character, with good handling aspects being top of the prize heap. Having spent more than a decade and a half with an English tabloid daily never being able to grasp the meaning of brevity or being succinct, he wags his tail furiously at the idea of waffling - in greater detail - about cars and all their intrinsic peculiarities here.

 

Comments

  • Pumpkins on Oct 17, 2012 at 4:21 pm

    Apa tunggu lagi Protong? Go buy this company…Good prospect long-term investment…tarik itu EPF join sekali hantam duit rakyat…lots of banks willing to give loan also…pinjam jangan tak pinjam…

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