Bankrupt lithium-ion battery maker A123 Systems may have gained a new owner, but will lose a lot of money in the pending sale to China-based Wanxiang Group, Reuters reports, citing an unidentified US Energy Department official.
And in the "one hand didn't know what the other hand was doing" department, we have this. Lithium-ion battery-pack maker A123 Systems received almost $1 million in federal funding the day it filed for bankruptcy, Reuters reports, citing a letter the company sent to Republican Senators John Thune and Chuck Grassley.
A123 System's bankruptcy created a quite a stir in the plug-in vehicle industry. Now, Fisker is asking the judge that the bankruptcy auction be delayed by a minimum of 30 days so that creditors' value "may be realized through higher and better offers." Fisker is involved in A123 because the battery maker is the sole supplier of battery packs to the Fisker Karma. The deal now means that A123 has $100 million worth of obligations that "give rise to substantial unsecured claims" in Fisker's favor,
Something interesting happened after A123 Systems filed for bankruptcy last week: the plug-in vehicle industry circled the wagons. AutoblogGreen received press releases and statements from a variety of electric vehicle (EV) players that, when taken as a whole, seem to indicate this particular bankruptcy filing hit a little closer to home than when, say, Think exited stage right. The main message would make Douglas Adams proud: Don't panic. Fisker, for example, gets all of its batteries from A123
After a long and bumpy road, battery-producer A123 Systems has officially filed for bankruptcy. This news comes immediately after word that the Waltham, Massachusetts-based company may not have enough cash to fund operations, or even seek bankruptcy protection. This news has ramifications elsewhere in the industry, as A123 had contracts with Fisker Automotive as well as with BMW.
A message to Bob Lutz, former General Motors vice chairman, and proponent of the Chevrolet Volt and Via Motors' plug-in electric vehicles. Regarding your guest column in Forbes lambasting the federal government for granting battery maker A123 Systems a Department of Energy grant and allowing a Chinese company to step in as an A123 investor/owner: Get over it!
If you're lithium-ion battery maker A123 Systems and have been through the public image ringer with the Fisker Karma battery pack recalls and an explosion at General Motors' Warren Tech Center, what do you do? After all, getting U.S. Dept. of Energy Grants, rolling out a resilient Nanophosphate EXT phosphate battery and signing a deal with Smith Electric Vehicles, can only get you so far. So, how about bringing in a Chinese investor? That is working pretty well for Volvo.
According to a report from Reuters, lithium ion battery maker A123 Systems is dangerously low on cash. The company filed a report just before the weekend with the U.S. Securities and Exchange Commission indicating that it "expects to have approximately four to five months of cash to support its ongoing operations."
What does "Nanophosphate EXT" sound like to you? If you're David Vieau, the CEO of A123 Systems, releasing a PR statement, it's "a game-changing breakthrough that overcomes one of the key limitations of lead acid, standard lithium ion and other advanced batteries." If you're Vieau talking to the New York Times, it's "a hedge against the market for electric vehicles."
A123 Systems may have expressed doubt in its ability to continue as a going concern in a recent financial filing, but that doesn't mean the company has given up. Indeed, due to increases in its power-grid and commercial transportation portfolios, it has announced it will be hiring an additional 400 workers over the next few months to boost production at its Livonia and Romulus, MI plants. The additional hires would more than reverse the cuts made last November and bring staffing levels to an all
The Detroit News reports lithium-ion battery manufacturer A123 Systems is set to post a net loss of $125 million on revenue of $10.9 million for the first quarter of 2012. Official results will be released later this week. The loss includes $51.6 million tied to replacing battery packs produced at the company's Lavonia, Michigan facility. Some of those packs could have been manufactured with defective cells. The figure also includes $15.2 million to increase inventory reserves.
The Detroit News reports lithium-ion battery manufacturer A123 Systems is set to post a net loss of $125 million on revenue of $10.9 million for the first quarter of 2012. Official results will be released later this week. The loss includes $51.6 million tied to replacing battery packs produced at the company's Livonia, Michigan facility. Some of those packs could have been manufactured with defective cells. The figure also includes $15.2 million to increase inventory reserves.
Last week, a fire broke out at the General Motors Technical Center battery research lab in Warren, Michigan. General Motors has since said the fire was caused by a battery that was being tested under "extreme stress." Engineers were trying to get the pack to fail, which it did, but not to ignite, which it also did when gases leaked out and somehow caught fire.