Battery Maker A123 Systems Acquired by Chinese Firm for $260M
December 10, 2012 8:10 AM
comment(s) - last by
Congress isn't too sure about the outcome
finally has a new owner after its auction this past weekend, but Congress isn't too happy about the outcome.
Chinese firm Wanxiang Group won the auction for A123 Systems on Saturday for about $260 million. This has concerned certain members of Congress, who said that A123's contracts with the U.S. Department of Defense are at stake.
"I am very concerned by Wanxiang's acquisition of A123," said Rep. Bill Huizenga (R-Zeeland). "A123 maintains several contracts with the Department of Defense and given the thin line between Wanxiang and the Chinese Government, I am concerned about the Government of China having access to sensitive technologies being used by our military forces."
However, Wanxiang doesn't have full access to A123's technology. Part of A123 was also sold to Illinois-based Navitas Systems LLC, which will hold the DOD contracts for $2.2 million.
Back in mid-October,
A123 Systems officially filed for bankruptcy
and agreed to sell its automotive business assets to Johnson Controls -- a company that optimizes energy efficiencies in car batteries, buildings and electronics.
Before that, A123 was missing its loan payments. It had received $249.1 million in grants from the U.S. government in 2009 to develop green, electric car batteries. It was discovered that the U.S. government gave A123
a $1 million grant
the day it filed for bankruptcy.
A123 Systems suffered a huge kick earlier this year when it announced a $55 million battery replacement program for Fisker Automotive's Karma. The vehicle had issues with the batteries' hose clamps.
A123 Systems joins a list of other green companies that filed for bankruptcy after receiving government loans and grants. Back in September 2011, solar panel company
Solyndra filed for bankruptcy
after receiving a $535 million loan from the U.S. Department of Energy (DOE). In November,
(maker of flywheels for grid efficiency) filed after receiving a $43 million loan guarantee from DOE in 2010.
In January 2012, EV battery maker
Ener1 filed for bankruptcy
after its subsidiary, EnerDel, won a $118.5 million grant from DOE in 2009.
The U.S. Bankruptcy Court in Delaware will hold a hearing on the result of the A123 Systems auction on Tuesday, December 11.
The Detroit News
This article is over a month old, voting and posting comments is disabled
12/10/2012 10:14:40 AM
Yup. We just financed yet more of China's technological and manufacturing superiority.
12/10/2012 1:31:10 PM
At this point China is neither technologically superior nor more efficient in manufacturing. Yes, the manufacture more volume than us (though not by a lot).
12/11/2012 9:53:04 AM
This is Dailytech. Take your Vulcan logic elsewhere. Here we listen to our guts, and our intestines do not digest well when contemplating China taking advantage of Laissez-Faire economics free from US Government manipulation. Wait, I though we conservatives stood for free markets and globalization?
It's unlikely that the A123 purchase has any security impact since batteries are slowly becoming a commodity. They already ensured that the DOD contracts stayed with a US company. It's a pity the taxpayer funded Chinese R&D but that's what you get for being careless when playing venture capitalist.
Who was monitoring their financials and writing grant reclamation clauses? The Windows paperclip man would have more sense.
"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser
U.S. Gov Gave A123 Systems $1M Grant the Day It Filed for Bankruptcy
November 19, 2012, 10:05 AM
Official: A123 Systems Files for Bankruptcy
October 16, 2012, 4:44 PM
Battery Maker EnerDel/Ener1 Received $118M DOE Grant, Now Filing for Bankruptcy
January 27, 2012, 10:01 AM
DOE Deals Another Bad Energy Loan as Beacon Power Files for Bankruptcy
November 1, 2011, 10:03 AM
$500 Million Wasted on Bankrupt Solar Panel Company; White House was Warned
September 14, 2011, 4:22 PM
Study Predicts Self-Driving Vehicles Could Rake in Billions
March 6, 2015, 8:34 AM
Dual-Motor Tesla Model S P85D's "Insane Mode" Shocks Passengers
January 28, 2015, 11:18 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
BMW Testing Tech to Allow Users to Auto-Park, Summon Cars Via Smartwatch
December 16, 2014, 9:30 AM
Lamborghini Offers Up $6,000 Leather-Bound Android Smartphone
December 12, 2014, 3:12 PM
Quick Note: GM Teases Next Generation Chevrolet Volt
November 20, 2014, 3:26 PM
Most Popular Articles
Windows 10 Build 10061: A Quick Review
April 27, 2015, 10:57 AM
Ding Dong the Deal is Dead: What's Next After Failed Comcast/TWC Merger
April 28, 2015, 2:06 PM
Report: Apple Pulls the Plug on Apple Watch Store Launch
April 16, 2015, 3:18 PM
Leather-Bound LG G4 Shuffles Out, "Specially Designed" Snapdragon 808 SoC
April 28, 2015, 4:00 PM
Microsoft "Welcomes Developers" to Its New "Edge Browser" (Codename: Spartan)
April 29, 2015, 7:25 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information