Wanxiang buys bankrupt battery maker A123

Chinese auto parts maker Wanxiang Group Corp. on Sunday bought A123 Systems, the bankrupt battery maker which supplies Fisker Automotive and others. 

By , Guest blogger

  • close
    In this August 2009 file photo, an A123 Systems Inc. high power Nanophospate Lithium Ion Cell for Hybrid Electric Vehicles battery is displayed in Livonia, Mich. Chinese auto parts maker Wanxiang Group Corp. fought off a joint bid from US parts company Johnson Controls Inc. and Japan's NEC Corp, to buy A123.
    View Caption

A123 Systems, the bankrupt battery maker which supplies Fisker Automotive and others, has finally found a buyer.

Chinese auto parts maker Wanxiang Group Corp. fought off a joint bid from U.S. parts company Johnson Controls Inc. and Japan's NEC Corp, with a bid of $256.6 million.

Reuters reports that A123's government business arm, which works with the U.S. Defense Department, has been separately sold to Navitas Systems for $2.25 million.

Recommended: Top 10 cars with the best resale value

The sale to Wanxiang must now be approved by Delaware Bankruptcy Court judge Kevin Carey, at a hearing on Tuesday. 

Opposition to the sale may focus on approval from the Committee on Foreign Investment in the United States--and some politicians and retired military leaders have already vocalized their concerns about the sale.

If the sale is approved, it will draw to a close a long sale process which has been ongoing since August. A bailout from the Chinese firm initially stalled when A123 couldn't meet certain criteria imposed by Wanxiang, which eventually led to the company's bankruptcy.

If A123 is in safer hands, electric automaker Fisker Automotive will be hoping production and supply quickly re-starts.

The luxury automaker has had to stall its own production due to short supply of battery packs--and the firm describes its inventory as "getting low".

Other vehicles supplied by A123 Systems include the Via Motors electric truck, the 2014 Chevrolet Spark EV, and BMW ActiveHybrid 3 and 5 models.

The Christian Science Monitor has assembled a diverse group of the best auto bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link in the blog description box above.

Share this story:
 
 
Make a Difference
Inspired? Here are some ways to make a difference on this issue.
Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.
 

We want to hear, did we miss an angle we should have covered? Should we come back to this topic? Or just give us a rating for this story. We want to hear from you.

Loading...

Loading...

Loading...