Autoblog

Bankrupt A123 changes name to B456 PDQ

Jonathon Ramsey — Fri, 29 Mar 2013 16:30:00 EST

Filed under: Government/Legal, Earnings/Financials

Ok, so we made the "PDQ" part up, but battery maker A123 Systems, Inc. has changed its name to B456 Systems, Inc. - and no, this is not an early April Fool's Day joke. As part of A123's bankruptcy proceedings dating to last October, it was required to change its name in order to be purchased by Chinese company Wanxiang. According to the Detroit Free Press, as part of a March 22, 2013 filing with the US Securities and Exchange Commission, A123 declared that ~~its new name is B456~~ the name of the old assets to be liquidated is B456, akin to the way the post-bankruptcy General Motors was broken into GM and Motors Liquidation Company. The ongoing concern owned by Wanxiang is still called A123 Systems, Inc. We're not sure if anyone at A123 realized the irony - B456 is also the model number for a fire extinguisher made by Amerex that happens to be good for "energized electrical equipment."

Wanxiang completed its purchase of ~~A123~~ B456 earlier this year. The company formerly known as A123 had received hundreds of millions of dollars in loans, tax credits and grants from the federal government and the states of Michigan and Massachusetts. Part of the funds from the Wanxiang purchase repaid the $2.8 million it received from Massachusetts, but it looks like the other monies will go unrepaid. The Chinese company has said it will keep the Michigan plants open, but Michigan is trying to keep Wanxiang from collecting the rest of its unused incentives.

Bankrupt A123 changes name to B456 PDQ originally appeared on Autoblog on Fri, 29 Mar 2013 16:30:00 EST. Please see our terms for use of feeds.

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Can the Chinese rescue Fisker?

David Kiley — Mon, 14 Jan 2013 16:00:00 EST

Filed under: Hybrid, Sedan, Earnings/Financials, Fisker, Electric, Luxury

Fisker Automotive is aggressively courting Chinese automakers to bail it out of its financial problems.

Executives with knowledge of the discussions told Autoblog that Fisker representatives have made recent trips to China to discuss deals that include capital investment and outright acquisition scenarios. Those discussions are continuing this week at the Detroit Auto Show. Reuters first reported discussions between Fisker and Chinese companies.

While Fisker was once favored by many auto industry analysts and executives to get the better of rival Tesla Motors in the premium/luxury EV market, Fisker has had several setbacks to its operations. The launch of the Fisker Karma, the company's first model, has been beset with problems, as is often the case with a new car company. Its lithium-ion battery supplier, A123 Systems, went bankrupt. And the company lost hundreds of cars at its Newark port when Hurricane Sandy devastated the New Jersey-New York coastline last fall.

In addition to needing investors, Fisker is also seeking strategic partners. Tesla, which had a successful initial public offering, for example, has both Toyota and Mercedes-Benz as investors and strategic partners.

Continue reading Can the Chinese rescue Fisker?

Can the Chinese rescue Fisker? originally appeared on Autoblog on Mon, 14 Jan 2013 16:00:00 EST. Please see our terms for use of feeds.

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China's Wanxiang looking to diffuse political fears over A123 purchase

Zach Bowman — Mon, 24 Dec 2012 09:01:00 EST

Filed under: China, Government/Legal, Earnings/Financials

Wanxiang Group has insisted A123 Systems will remain an American company operationally following intense scrutiny from US lawmakers. China's largest parts manufacturer purchased A123 Systems at auction after the company fell into insolvency, but the battery maker holds a number of defense contracts with the US government. Pin Ni, head of Wanxiang's US operations, told Reuters that A123 will not be folded into the group's lithium-ion battery unit and will instead remain an American company. The $257 million Wanxiang bid excludes the A123 defense contracts.

David Vieau, A123 CEO, said many of the concerns are overblown since his company has been manufacturing batteries in China for the past six years. The company has also worked to develop battery technology with SAIC Motor Corporation, a Chinese-state owned entity. Even so, insiders close to the deal say the battery maker hasn't shared some of its more important advancements with its partners, including tech that helps increase a battery's power density.

Meanwhile, Johnson Controls, the company that lost the bid to acquire A123 Systems by $6 million, has said it continues to be interested in the bankrupt company should the US government not approve Wanxiang's purchase.

China's Wanxiang looking to diffuse political fears over A123 purchase originally appeared on Autoblog on Mon, 24 Dec 2012 09:01:00 EST. Please see our terms for use of feeds.

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A123 winning bid from China's Wanxiang prompts concern in Congress

Zach Bowman — Mon, 10 Dec 2012 10:00:00 EST

Filed under: Government/Legal, Technology

The Detroit News reports that China's Wanxiang Group Corporation will acquire almost all of bankrupt A123 Systems Inc. for $256 million. The deal includes all of the American battery manufacturer's grid and commercial business assets as well as the company's facilities in Michigan, Massachusetts and Missouri. Meanwhile, Woodridge, Illinois-based Navitas Systems will purchase all of A123 Systems' government contracts for $2.25 million.

Previously, Johnson Controls was a leading bidder for the bankrupt EV battery manufacturer, but that company withdrew its bids from the bankruptcy auction after declining to match Wanxiang's highest bid. But the final sale will be subject to approval by the bankruptcy court handling the case in Delaware, and some members of Congress have reportedly raised concerns over the sale.

Rep. Bill Huizenga, R-Michigan, said he was concerned about Wanxiang taking over A123 Systems because of the battery maker's close ties with the US Defense Department. Huizenga has been quoted as saying, "I am concerned about the government of China having access to sensitive technologies being used by our military forces."

This isn't the first time we've heard those rumblings. Back in August, several US automotive executives said Wanxiang's purchase of A123 Systems could put industry trade secrets at risk, including cutting-edge lithium-ion battery technology. Likewise, November saw US senators John Thune, R-South Dakota, and Chuck Grassley, R-Iowa, raise concerns over the Chinese company's interest in the bankrupt battery maker.

A123 winning bid from China's Wanxiang prompts concern in Congress originally appeared on Autoblog on Mon, 10 Dec 2012 10:00:00 EST. Please see our terms for use of feeds.

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