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Wanxiang Acquisition Makes A123 Lose $116-Million US Grant

The acquisition of bankrupt US battery manufacturer A123 Systems Inc. by Chinese company Wanxiang is not all good news. Apparently, they will be losing a huge amount of money, according to official sources in the US Department of Energy (DOE), which had granted the company some $249 million, prior to its filing for bankruptcy, in October.
A123 1 photo
A123 has used up less than half of the grant, yet they now have to return the remaining $116 million back to the DOE. The new Chinese owners were apparently aware of this situation, and so was the other major bidder, Johnson Controls, yet both tried to close the deal.

In the end, the $256.6 million offered by Wanxiang were deemed sufficient, while the $251 million bid from Johnson Controls was not deemed as satisfactory. Still, following the closing of the deal, officials from China made very optimistic statements about where they want to take the company, and what they want to do.
Still, they need to get production rolling again, as automakers like Fisker are dependent on a steady supply of lithium-ion battery packs, which they manufacture.

Story via autoblog.com


 
 
 
 
 

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