Fisker Automotive
is accusing battery maker and former vendor A123 Systems of funny math after the latter company filed documents of its debt levels with the US Bankruptcy Court, Reuters says.

The California-based maker of the extended-range plug-in Karma says A123 owes it more than $212 million, much of that coming from warranty breaches (and ensuing production delays) stemming from defective batteries supplied to Fisker. A123 disagrees, and says it owes Fisker just $124 million. Fisker also says A123 "may be overstating how much, and when, creditors would get money," Reuters writes. An A123 attorney didn't respond to a request for comment from Reuters.

Massachusetts-based A123 filed for bankruptcy last October and in late January received government approval to be bought out by China-based Wanxiang Group for about $257 million.


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    • 1 Second Ago
  • 18 Comments
      Giza Plateau
      • 1 Year Ago
      I have been pressuring A123 to sell their batteries (which they foolishly refuse) by contacting Wanxiang and telling them about the foolish practice. The thinking is that a new owner of a bankrupt company wouldn't stand for such foolish attitude in marketing. I have actually gotten several replies from CEO of Wanxiang America Pin Ni, but he's not exactly the brightest of take charge lights himself. First he was sure that of course A123 would sell me batteries, why wouldn't they. Then after a "sorry we can't help you on your request" from A123 he started talking about prices of A123 cells having gone up by factor 2-3, if that was ok? I said of course it wasn't ok but it would be nice to know what price we are talking about in any case since I have never gotten a real price from them. He said he would look into it but so far nothing. Incredible that such big dollar companies are governed by such lax incompetence. I would actually think that even if you picked a CEO at random in the general population it would be very unlikely that you would get someone stupid enough to refuse sales in general. Most people have a better sense of business viability than that.. But refusing sales is actually surprisingly common among big companies. It's bizarre. Fisker is of course dead in any case but A123 disappearing will certainly not make it easier. I could point to one or two companies that could provide a reasonable alternatives (DLG or CALB) but would always require a significant redesign.
        brotherkenny4
        • 1 Year Ago
        @Giza Plateau
        I think DF makes a good point. A company that makes a product, and that will not sell to any customer no matter how large or small is moronic. Now, you can buy A123 cells on the internet, they just aren't the EV cells. So how are the EV cells any different than the 18650s? Are they dangerous? I can buy all the gasoline I want. I doubt EV cells are more dangerous than gasoline and guns. I have heard excuses like warranty issues, but that's BS. Sell them at a profit without warranty. Oh, yes, the lawyers and judges need to determine if they can do that in a free market. A123 should sell the EV cells alongside their other consumer cells on the internet. You know, unless the car companies require they only sell to them.
        Doug
        • 1 Year Ago
        @Giza Plateau
        How many cells did you tell them you wanted buy?
        Marcopolo
        • 1 Year Ago
        @Giza Plateau
        @ Giza /DF, Well, in all the tense negotiations that have involved Wanxiang and the A 123 bankruptcy administrator, your ludicrous enquiry must have provided some welcome comedy relief !
          Giza Plateau
          • 1 Year Ago
          @Marcopolo
          Marco, even if we say for the sake of argument that I'm a wannabe that would never actually buy any cells, then your point is obviously wrong in that they deny sales to everyone. Even startups with real money and intent to make a small series production of cars. The phone is just off the hook when people inquire. If you actually get a price it's just a 3-4x go away price. You are wrong, I am right. As usual.
          Giza Plateau
          • 1 Year Ago
          @Marcopolo
          Yeah, customers must be a real joke to them.
          Marco Polo
          • 1 Year Ago
          @Marcopolo
          @ Giza /DF, Wanxiang, are interested in real customers, not pretenders building imaginary danmobiles.
      dlubeck_mbz
      • 1 Year Ago
      At this rate, will Fisker ever build a car again? Can they get another vendor to supply their batteries? This all sounds like the end of business is approaching soon.
        Letstakeawalk
        • 1 Year Ago
        @dlubeck_mbz
        Wanxiang has said that they will honor A123's responsibility to provide the batteries that Fisker has a contract for. There's no reason why Wanxiang wouldn't want to keep a current client happy.
          Letstakeawalk
          • 1 Year Ago
          @Letstakeawalk
          It looks promising: "Wanxiang Group Co. said it wants to support struggling luxury plug-in hybrid manufacturer Fisker Automotive Inc. that’s the main customer of a bankrupt battery supplier China’s biggest auto-parts maker is acquiring. “It’s in our interest if we can help Fisker, in any way we could,” Wanxiang America Corp. President Pin Ni said in a phone interview late yesterday." http://www.bloomberg.com/news/2013-01-31/wanxiang-interested-in-aiding-carmaker-fisker-after-123-purchase.html "Wanxiang America Corp. is interested in investing in electric car maker Fisker Automotive Inc. According to Wanxiang, an Elgin-based subsidiary of China's Wanxiang Group, it is looking into how it can help the Anaheim, Calif.-based automaker as a key supplier, strategic partner or investor." http://www.chicagobusiness.com/article/20130129/NEWS05/130129776/chinas-wanxiang-looking-to-invest-in-fisker-automotive#ixzz2NQqIm03Z
          Marcopolo
          • 1 Year Ago
          @Letstakeawalk
          @ Letstakeawalk It will depend on the terms of the bankruptcy, and how viable Wanxiang regards Fisker as a client.
      Spiffster
      • 1 Year Ago
      OMG Fisker... when will the bad luck end? Im starting to think that it just wasnt ment to be. I do hope they succeed though.
      Spec
      • 1 Year Ago
      It is sad to see dead and near dead companies fighting.
        Marcopolo
        • 1 Year Ago
        @Spec
        @ Spec Fisker Automotive, is a long way form being dead. But issues like these are important as they go to solvency issues. FA, is in talks with several European and PRC firms about JVC or equity investment. FA's corporate advisor Huron Consulting, would be very remiss if they didn't look closely at the possibility of Wanxiang playing a role in pushing FA toward a PRC investor. The US bankruptcy system must be monitored very closely if creditors, especially warranty creditors, are to receive full payout. ( Bankrupt US EV maker Vectrix Inc, is a good example)
          Giza Plateau
          • 1 Year Ago
          @Marcopolo
          Unfortunate timing of your comment Marco : )
          Giza Plateau
          • 1 Year Ago
          @Marcopolo
          Since custom T-shirt productions are so easy now maybe I should get some made with: "Fisker Automotive, is a long way form being dead" -Marcopolo : )
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