A123 Bankrupt - $0.25 Billion Loss - More Ammo for Romney
I actually own 20ah A123 cells on my ebike so this kind of sucks.
Did the Chinese company turn down the deal?
I thought A123 was going to be bought and avoid this...-
Slow down .. don't have to focus on the negativizers ..
Assets to be sold to Johnson Controls
This means the technology is not going to the Chinese.
It probably also means that hobbyists like us will be locked out of getting A123 cells in the future.
I've just started putting together a news article to cover this. I posted a list of links to my prior news articles on the events that led up to this here: http://visforvoltage.org/forum/13139-a123-waltham-ma
Well maybe if the company sold cells to hobby people like us then they might actually make money.
The government did not start A123 Systems. It was MIT researchers who started the company, just like a zillion other companies get started by university researchers looking to capitalize on their findings.
Read it carefully .. the deal with Johnson is only for the automotive batteries business. A123 also has a line of business selling grid energy storage systems. A123 is maintaining control over that part of the business, and looking to sell it to other companies.
The way I see it there are two parts to this failure - http://blog.longtailpipe.com/2012/10/why-did-a123-systems-go-to-bankruptcy.html
- A123 made a couple expensive business mistakes -- quality control wasn't good enough, and problematic batteries made it out to OEM vehicles -- overly dependent on a primary customer, Fisker Automotive
- Fisker Automotive did not start Karma production when expected, and then when the DoE froze Fisker's loans that halted plans for Fisker to start production of the Atlantic this year. If Fisker had started Atlantic production when expected, A123 would instead be ramping up production right now.