Court Documents Reveal More About The Potential Apple EV

Earlier this year it came out that Apple was being sued by battery maker A123 Systems for poaching one of its top electric vehicle battery engineers. While A123 has said it is getting out of the EV business, the lawsuit also alleges that Apple has lured away other big battery builders, lending credence to rumors that it is building its own electric car division.

VentureBeat reports that one of the employees in question was one Mujeeb Ijaz the CTO of A123 Systems, who was paid nearly $300,000 per month to develop batteries for Formula 1 race cars. That’s top-of-the-line battery tech, making him an ideal candidate for Apple’s own battery program. The lawsuit alleges that Ijaz and other A123 employees, as well as employees from the battery divisions of Toshiba, Samsung, Panasonic, and LG, were poached via an “aggressive campaign” by Apple to populate its own large battery division.

The suit says that Ijaz and Apple knowingly broke a contract, and Apple is reportedly settling with A123 out of court, most likely in order to put this little episode behind them and not let out any more information on the so-called “Project Titan” electric car. The mounting evidence of an Apple electric car is increasingly impossible to ignore though. Apple has been accused of targeting employees from Tesla with quarter-million dollar signing bonuses, and a suspicious facility near Apple’s Cupertino, California headquarters seems to be dedicated to in-house car research. For a company that mostly makes phones and computers, adding an on-site garage is a strange move indeed. There are also rumors of a massive factory complex that Apple is building in Ireland, but who knows what that could be for? We probably won’t know until much closer to 2020.

The only thing I know for sure is that I should have taken engineering courses, instead of devoting whole semesters to parsing through Tolstoy and Milton.

Apple Sued For Poaching Battery Engineers From A123 Systems

The rumors that Apple is working on an electric car codenamed Project Titan just got a lot stronger with a lawsuit by A123 Systems that accuses the iPhone maker of stealing key EV battery engineers.

Reuters reports that beginning in June of 2014, Apple began approaching key employees of A123 Systems, including several in leadership positions on critical projects. These engineers were so key to some projects that without them, the projects had to be put on hold or scrapped altogether.

A123 Systems is still going through a 2012 bankruptcy and buyout, including the sale of assets and the conclusion of several longterm research projects. A123 Systems was purchased by China’s Wanxiang Automotive, which also owns Fisker and intends to bring the plug-in hybrid back into production. Presumably, everything A123 knows or owns that is of value to Wanxiang will be folded into the larger company, as its owner has every intention of building an electric car empire to rival Elon Musk’s. Apple has also been accused of trying to poach talent from Tesla, though it’s met with limited success.

Apple apparently has similar plans though, with the A123 lawsuit accusing the tech giant of “…developing a large-scale battery division to compete in the very same field as A123.” A123 Systems specializes in larger batteries meant for transportation purposes, and was the sole provider of batteries for the Fisker Karma, as well as the Chevy Spark EV until GM brought battery production in-house.

Can Apple build a true Tesla rival and navigate a notoriously difficult industry? It certainly has the cash to do so, and the evidence that Apple is building an electric car is all but undeniable at this point. I for one can’t wait to see the iCar, with its proprietary windshield wipers and mediocre motor.

Wanxiang Will Relaunch Fisker In America, Then China

With failed hybrid carmaker Fisker in one corner, and battery maker A123 Systems in the other, China’s Wanxiang is poised to take on Tesla. For Wanxiang’s CEO Lu Guanqiu though, this is about more than business, it’s about a lifelong dream that may play out over generations.

But as Forbes reports, Wanxiang is going to fight Tesla using the same tactics as Elon Musk. Mr. Lu will be starting his electric car ambitions in America before coming home to China, which is expected to be the largest market for EVs by 2020. With Tesla’s roll out of the Model S in China running into roadblocks that include a lack of charging infrastructure and customers irate over delivery delays. It’s far from the smooth rollout that Tesla had in Europe, and it will take years to cover the country in Superchargers the way America is now connected.

That leaves the door open for Wanxiang to restart Fisker production at a factory in Delaware, bringing the brand back to life here in the U.S. Once production is restarted, development of the Fisker Atlantic can be finished and the cheaper plug-in hybrid can be brought to market.

The next step? Take Fisker (or whatever it ends up being called) to China, where sales of electric and plug-in cars are expected to explode. Tesla has done the same thing, though Wanxiang’s CEO  seems determined to make-it-or-break-it, saying he will spend “every cent” into making electric cars. Could the Fisker Karma and Atlantic end up as electric cars instead of hybrids?

With the plan to relaunch the brand within the next year, we don’t have long to wait.

Source: Gas 2.

Fisker May Change Name Before 2015 Relaunch

Under new management, Fisker is readying a relaunch for the middle of 2015, though it might not be called Fisker anymore, according to its interim president. A name change might help the automaker get a fresh start, but can it really shake all the associated baggage with a new badge?

Purchased by China’s Wanxiang in a last minute bid for $149 million, Fisker owes its new masters a hefty sum already. According to Fisker’s temporary chief Roger Brown, the automaker will restart Karma production by the middle of next year, followed by a shooting brake model called the Karma Surf in 2016. If that all goes well enough, the half-finished Fisker Atlantic could hit dealers by 2017, the same year the Tesla Model E is slated to launch.

But one thing Brown isn’t sure on is whether or not to keep the Fisker name. That still belongs to Henrik Fisker, who hasexpressed interest in selling it. So far, Wanxiang has moved to scoop up all Fisker-related assets, including the Delaware factory and battery maker A123 Systems. As far as the next Karma goes though, the hybrid drivetrain will probably be ditched in favor of a supercharged Chevy V8.

Irony? You betcha.

According to Brown, Wanxiang is super serious about building “a great car company” here in America, and to be sure, all the pieces are in place. Wanxiang paid cash for Fisker, and employees are apparently beating down the doors in a bid to come back to the automaker. Fisker is definitely coming back it seems, it just might not be called Fisker anymore. Meanwhile, the man who founded the billion-dollar boondoggle is back to designing motorcycles.

That’s probably for the best, but what do you lot think?

Source: Detroit News

Chevy starts Spark EV motor production in Baltimore

While the Chevy Spark EV will be made in Korea, two important parts –motor and battery pack – are built in the US. Today, General Motors proudly highlighted the start of motor production at its White Marsh plant outside of Baltimore, MD. GM says this move makes it the first domestic automaker to build electric motors and drive units in US.

The compact, lightweight 100-kW motor offers 130 horsepower and 400 pound-feet of torque, which is enough to move the electric Spark to 60 miles per hour in under eight seconds. GM isn't saying what the annual Spark EV motor capacity of the Baltimore plant is, just that it will be able to build them to suit customer demand.

Aside from the motor, A123 (now owned by Wanxiang Group) is making Spark EV cells and battery packs in Livonia, MI. The two components are shipped to Korea for installation and the finished cars will then be exported back to the Western US (the Spark EV's initial US markets are California and Oregon) starting this summer, with shipments to Canada, Europe and South Korea taking place later.

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Fiskers Claims Against A123 Systems Cut By 89%

Fisker Automotive made claims of $140 million against A123 Systems (now called B456  Systems. They moved onto the next letter in the alphabet and used the three numbers after 123) because of the rejection of its supply agreement and alleged breach of warranty obligations. The claims were $91.2 million for damages caused by rejection of its supply agreement, and $48.7 million for a breach of warranty obligations.

Alas, the $91.2 million supply agreement claim was struck down, and the $48.7 million warranty breach claim reduced to $15 million, according to court documents. A123’s disclosure statement was approved by a U.S. Bankruptcy Judge: Kevin Carey.

It is an outline of A123 Systems‘ liquidation plan which will be used by creditors to decide how to vote on the plan, according to court documents that were filed on the 14th of March. A123 Systems’ bankruptcy is saddening, and, to opponents of alternative energy research and development funding, it is another reason to lobby against it.

In any new industry, there will always be failures. It is impossible for there to be no failures in any new industry. That would be unrealistic. This should be kept in mind.

Source: Bloomberg 

Bankrupt A123 changes name to B456 PDQ

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. 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.



Source: Autoblog

New A123 Systems LLC emerges

Li-ion battery maker A123 Systems LLC, a newly formed, wholly owned subsidiary of Wanxiang America Corporation, has acquired substantially all of the non-government business assets of bankrupt A123 Systems, Inc.

Included in the acquisition, which has received approval from the Committee on Foreign Investment in the United States (CFIUS), are A123’s automotive, grid and commercial business assets, including technology, products, customer contracts and U.S. facilities in Michigan, Massachusetts and Missouri; its manufacturing operations in China; and its equity interest in Shanghai Advanced Traction Battery Systems Co., A123’s joint venture with Shanghai Automotive. Excluded from the acquisition is A123’s Ann Arbor, Mich.-based government business, including contracts with the US military, which were acquired by Navitas Systems LLC.

We are excited to add A123 Systems to our growing portfolio of companies as we continue to expand on our strategy of investing in the automotive and cleantech industries in the US. A123 will continue to offer cutting-edge technology for vehicle electrification and grid-scale energy storage, strong manufacturing and systems engineering capabilities and a world-class R&D team. Wanxiang America will continue to foster the technologies A123 has worked so hard to develop, and we believe this combination positions A123 for long-term success. We’d also like to thank Dave Vieau for his years of dedication and service to A123.

—Pin Ni, president of Wanxiang America

A123 Systems LLC is targeting three core business areas: transportation, electric grid and lead-acid replacement. In addition, A123 will continue operating its existing manufacturing facilities in China.

• Transportation. In addition to its position in commercial vehicles and its presence in passenger car high-voltage systems, A123 Systems LLC will seek to capitalize on the increasing market opportunity for its technology in low-voltage applications, including start-stop micro-hybrid battery systems.
  The new company is also committed to continue executing on previously announced customer agreements introducing next-generation vehicles to market, including the ActiveHybrid 3 and ActiveHybrid 5 HEVs from BMW, the Chevrolet Spark EV from General Motors, and the Roewe 550 plug-in HEV and Roewe E50 EV from Shanghai Automotive, China’s largest automaker.
• Electric Grid. A123 Systems LLC will continue providing energy storage solutions and services designed to significantly improve the operational reliability, economic viability and efficiency of electric power grids.
• Lead-Acid Replacement. A123 Systems LLC will continue to service key strategic customers by supplying lithium-ion battery solutions designed to deliver higher performance, longer life and lower total cost of ownership as compared with traditional battery chemistries for industrial, commercial and consumer applications.

Distributions to creditors of the old bankrupt A123 Systems will be made pursuant to a liquidating plan or other process, in either case under the supervision and with the approval of the Bankruptcy Court.

The old A123 Systems stock is continuing to trade, despite the fact that the common stock is not expected to have value after the asset sales. After the sales close and the bankruptcy process is complete, the common stock will be cancelled and A123 will “go dark” by making a filing with the SEC that will officially terminate the registration of the stock.

A123 Systems reaches agreement to sell substantially all assets to Wanxiang for $256.6M

A123 Systems, Inc. reached agreement on the terms of an asset purchase agreement with Wanxiang America Corporation through which Wanxiang would acquire substantially all of A123’s assets for $256.6 million. (Earlier post.) Wanxiang outbid a joint Johnson Controls and NEC offer and a bid from Siemens in an auction held on 6 December for the assets of the bankrupt Li-ion battery maker.

According to the terms of the asset purchase agreement, Wanxiang would acquire A123’s automotive, grid and commercial business assets, including all technology, products, customer contracts and US facilities in Michigan, Massachusetts and Missouri; its cathode powder manufacturing operations in China; and its equity interest in Shanghai Advanced Traction Battery Systems Co., A123’s joint venture with Shanghai Automotive.

Excluded from the asset purchase agreement with Wanxiang is A123’s Ann Arbor, Mich.-based government business, including all US military contracts, which would be acquired for $2.25 million by Navitas Systems, a Woodridge, Ill.-based provider of energy-enabled system solutions and energy storage products for commercial, industrial and government agency customers.

The completion of the sale to Wanxiang is subject to certain closing conditions, including approval from the Court as well as from the Committee for Foreign Investment in the United States (CIFIUS). Because the total purchase price for A123’s assets would be less than the total amount owed to creditors, the Company does not anticipate any recoveries for its current shareholders and believes its stock to have no value.

The agreement was reached following an auction conducted under the supervision of the United States Bankruptcy Court for the District of Delaware. A hearing at which A123 and Wanxiang will seek the required Court approval of the sale is scheduled for Tuesday, 11 December 2012.

As we had hoped, the auction process for A123’s assets was robust and competitive. We are pleased with the result of the auction and believe that the selected bids from Wanxiang and Navitas maximize the value of A123’s assets for the benefit of our stakeholders. We expect that the sale will be approved by the Court, at which time we plan to execute the separate asset purchase agreements with Wanxiang and Navitas.

We think we have structured this transaction to address potential national security concerns expressed during the review of our previous investment agreement with Wanxiang announced in August as well as to address concerns raised by the Department of Energy. We believe this transaction balances those risks with A123’s obligation to act in the best interest of our creditors.

—Dave Vieau, CEO of A123

Based in Chicago, Wanxiang America has been in the automotive and industrial markets in the US since 1994 and currently has more than 3,000 employees in the US. It is a subsidiary of Wanxiang Group, China’s largest automotive components manufacturer and one of China’s largest non-state-owned companies. A123 is Wanxiang’s fifth clean energy investment in the US in 2012.

We believe that A123’s industry-leading technology for vehicle electrification, grid energy storage and other industries complements Wanxiang’s strong R&D and manufacturing capabilities, so we think adding A123 to our portfolio of businesses strongly aligns with our strategy of investing in the automotive and cleantech industries in the US.

We plan to build on the engineering and manufacturing capabilities that A123 has established in the US and we are committed to making the long-term investments necessary for A123 to be successful.

—Pin Ni, president of Wanxiang America

Johnson Controls withdrew from A123 Systems bankruptcy auction

Following the announcement by A123 Systems that it that reached agreement to sell most of its assets to Wanxiang for $256.6 million (earlier post), Johnson Controls announced that it had officially withdrawn from the bankruptcy auction when it declined to match the higher bid submitted by Wanxiang. Johnson Controls and NEC had submitted complementary bids, Johnson Controls for the automotive and government assets and NEC for the grid and commercial assets.

Johnson Controls originally made a $125-million bid for A123’s automotive business. (Earlier post.)

The final sale to Wanxiang is subject to approval by the bankruptcy court. A hearing is currently scheduled for 11 December. Sale to Wanxiang is also subject to review by the Committee for Foreign Investment in the United States (CFIUS) and requires approval by the US government.

While A123’s automotive and government assets were complementary to Johnson Controls’ portfolio and aligned with our long-term goals, Wanxiang’s offer was beyond the value of those assets to Johnson Controls. Reports by other parties that our proposal involved an elimination of jobs in Michigan are inaccurate.

—Alex Molinaroli, president, Johnson Controls Power Solutions

Johnson Controls launched the first US facility to produce complete Li-ion battery cells and packs for hybrid and electric vehicles, in Holland, Mich. The company was recently named as one of the industry leaders in the Joint Center for Energy Storage Research $120-million energy research hub led by Argonne National Lab and funded by the US Department of Energy (DOE). (Earlier post.) In 2009, Johnson Controls was awarded a $299-million matching grant by the DOE under the American Recovery and Reinvestment Act (ARRA) to build domestic manufacturing capacity for advanced batteries for hybrid and electric vehicles.

A123 received $950k from feds on bankruptcy-filing day

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 got a $950,000 payment on October 16, the wire service said. In all, A123 received about half of the $249 million earmarked in a Department of Energy grant to the battery maker.

Many Republicans have criticized the federal government for its loans and grants to new-technology transportation companies like Tesla Motors and Fisker Automotive, and the A123 situation has appeared to have added fuel to such criticism. Such officials' claims have been further supported by relatively slow electric-vehicle sales in the US. The Energy Department has defended its decisions in the name of green-energy policy.

Early next month, A123 will likely receive acquisition bids from at least four companies, including China-based Wanxiang Group Corp. and US-based Johnson Controls. Grassley and Thune have both expressed concern that Wanxiang Group ownership may create security risks. Japan's NEC Corp. and Germany's Siemens AG may also make offers for A123, which recently received US Bankruptcy Court permission to borrow $50 million from Wanxiang.



Source: Autoblog Green

A123 Bankruptcy Auction Set For December 6th By Court

Ailing battery firm A123 Systems, which supplies batteries to Fisker, BMW and GM among others, could soon have a new owner after Delaware courts have imposed a deadline for bids.

Two companies vying for A123 and its assets are auto-parts maker Johnson Controls, and Chinese auto-parts maker Wanxiang Group.

Associated Press reports the new December 6 date has been set in place, in lieu of a November deadline, to allow more companies to compete for the bankrupt battery company.

Wangxiang Group is currently the leading bidder on A123. The company previously put forward a $465 million rescue deal for A123, which fell through when A123 was unable to meet some of the Chinese company's agreement criteria.

Johnson Controls then put in a debtor-in-possession loan, subsequently withdrawn to allow bidding from Wangxiang to go ahead. Johnson Controls still intends to acquire A123's automotive assets with a $125 million bid.

Wangxiang is currently seeking regulatory approval for its bid, from both the Committee of Foreign Investment in the U.S, and the Government of China.

The company is confident it will gain approval, but A123 had previously wanted an earlier bid deadline to guarantee Johnson Controls the sale--just in case the Chinese bid couldn't continue.

Meanwhile, a judge has approved a performance-based incentive plan at A123 for ten senior employees, and a retention plan of $2.4 million for 66 existing A123 employees.

Source: Green Car Reports

A123 Systems Wants To Void Fisker Contract: Fisker Says Not So Fast

The bankruptcy of American battery maker A123 Systems was another blow to President Obama’s green energy loan program. Yet as the consolidation of the battery industry continues, crucial questions are arising about the deals made between battery makers and electric car companies. While A123 wants to void a contract it made with Fisker Automotive, Fisker says that would disrupt the deployment of its plug-in hybrid Karma.

A123 is currently in legal limbo, with competing bids from both Johnson Controls and China’s Wanxiang Group. But the real battle is in bankruptcy court, where A123 wants a judge to void all of its current contracts…including one with Fisker. With 25% of its revenue coming solely from Fisker, it is not much of a leap to imagine that this contract helped usher A123 into bankruptcy.

No doubt, the failure of the electric car market to mature is hurting battery makers including A123, who were hoping for a lot more volume by this time. Fisker’s own sales numbers have been far off from their own projections, but the automaker argues that by voiding the current contract, production of the Karma plug-in hybrid would be stopped. Fisker could not find a replacement battery maker quickly enough to avoid a work stoppage.

That would further hurt the image of Fisker…but it sounds like if A123 Systems is to survive, it simply must void its contract with Fisker. A123 took a big hit when it had to recall and replace defective batteries to Fisker, and while it has contracts with other companies including Black & Decker and Navistar, Fisker was by far its most important client.

I’ll be keeping an eye on this story; it seems to me one company or another is about to get screwed though. Considering both Fisker and A123 Systems received taxpayer money, you can the howling about this bankruptcy is just beginning.

Source: The Truth About Cars

SAIC introducing Roewe E50 electric vehicle in China

SAIC Motor Corporation Limited (SAIC Motor) is launching the battery-electric Roewe E50 on the market in China. The company expects to sell 1,000 of them within the first year. The E50 is based on a newly developed electric vehicle platform.

Roewe E50. Click to enlarge.

With a 47 kW motor and a battery pack from A123 Systems , the E50 has a range of 180 km (112 miles) and a top speed of up to 120 km/h (75 mph). The EV supports either 220V charging or fast charging, which can bring the battery to an 80% state of charge in 30 minutes.

The E50 uses several lightweight materials from Evonik for various applications to support reduced energy consumption and lower emissions, such as PLEXIGLAS material for the side screens, rear window and rear lamp, as well as ROHACELL rigid core material and an epoxy resin formulation based on VESTAMIN hardener technology for the engine hood.

Source: Green Car Congress

Future Unclear For Bankrupt A123 Battery Firm As Rescuers Maneuver

Bankrupt battery maker A123 Systems could finally be on the verge of successfully securing a loan from a Chinese auto parts maker. The company will discuss with bankruptcy courts to secure approval for a loan from Wanxiang Group Corp.

A123 became bankrupt after a $465 million rescuedeal from the Chinese company fell through, with A123 unable to meet some of the terms of the companies' agreement. Wanxiang would have owned 80 percent of the struggling firm, which supplies batteries for Fisker, BMW, and the upcoming Chevrolet Spark EV.

As Reuters reports, an interim debtor-in-possession (DIP) loan from auto parts supplier Johnson Controls has been withdrawn to enable the Wanxiang loan to proceed. Johnson Controls has said it will still maintain its $125 million bid for A123's automotive assets. However, a replacement DIP loan from Wanxiang could put the Chinese company at an advantage over Johnson Controls.

Fisker, who objected to the $125 million bid from Johnson Controls, should also be better served should the Chinese bid succeed. The luxury carmaker was responsible for 26 percent of A123's income in 2011, and its battery recall over faulty cells has been partly responsible for A123's downfall. The main stumbling block to Wanxiang could be gaining approval from both the Committee of Foreign Investment in the U.S, and the Government of China, before the deal goes ahead.

If that goes well, then only a challenge from Johnson Controls over assets would stand in the way of the loan.

For A123 and its stakeholders, a resolution can't come too soon.

Source: Green Car Reports

Fisker asks bankruptcy judge to delay A123 asset transfer to Johnson Controls

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, according to court papers filed today, Bloomberg reports.

Fisker said it would also file an emergency motion to challenge "debtor-in-possession loan." Johnson Controls is set to take over A123's automotive assets, and Fisker said it is not trying to stand in the way of an asset sale in theory. It just wants the delay because "various protections" that Johnson Controls has "are unnecessary, excessive, and counterproductive to a successful sales process."

Fisker attorney Gregg Galardi said the bankruptcy process was "crafted" to benefit Johnson Controls and that, "The best interests of the estates, however, are not well served through a hasty and unfair sale process designed to ensure that JCI is the ultimate purchaser." In other words: don't let all this good stuff go cheaply.

RELATED GALLERY2012 Fisker Karma: Second Drive

News Source: Bloomberg

Johnson Controls acts to facilitate A123 bankruptcy process, avoid delays by threatened actions from Wanxiang

In collaboration with A123 Systems, Johnson Controls has chosen not to be the debtor-in-possession (DIP) lender during A123’s bankruptcy process to avoid potential delays posed by threatened legal actions from Wanxiang. The parties believe this move is in the best interest of the estate by ensuring an efficient process that will best preserve value for creditors, employees and customers.

We are concerned that back-and-forth posturing by other interested parties may lead to confusion and anxiety for A123’s employees and customers and thus destroy underlying value in the estate. We have agreed to step aside as the DIP funder in order to keep the process moving and allow it to conclude in the most efficient manner possible. We want to reassure employees, customers and other stakeholders that Johnson Controls remains committed to our acquisition of A123, which will keep a source of critical jobs, intellectual property and advanced battery technology in the United States.

—Alex Molinaroli, president, Johnson Controls Power Solutions

Johnson Controls maintains its $125 million offer for A123’s automotive assets as well as the stalking horse position in the bankruptcy process subject to Bankruptcy Court approval, expected on 5 November. The company also plans to expand its offer to include A123’s government business, including military contracts, during the bankruptcy process.

A123’s technology provides a combination of performance attributes that make it well suited for a range of applications, including certain automotive and military applications that are complementary to Johnson Controls’ existing portfolio.

—Alex Molinaroli

Why Bob Lutz is wrong about A123 Systems' new Chinese investor

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!

While A123 Systems is in a desperate situation with financial losses related to the Fisker Karma – whichkeeps having problems – when it comes to federal financial support and making deals with Chinese investors, there are a few things you left out. For example: your own management role at General Motors when the federal government executed a large ownership stake investment and required GM to strip down the dealership network. Whether or not the feds should stay out of corporate bailouts or grant DOE grants and loans to greentech companies may be worthwhile to debate, but it is unavoidably part of the landscape these days, for better or worse.

Another irony is your criticism of A123 for cutting a deal with Chinese auto parts company Wanxiang since you say doing business with the Chinese government and corporations is bad for U.S. business and autonomy. You write: "If we can't get our act together soon, the country will 'go Chinese' company by company, institution by institution, industry after industry. There will be no need for a military conflict against an overwhelmingly superior force: the Chinese will simply buy the country, a little piece at a time."

The U.S. is no longer the sole dominant force in global economics and military prowess. I think this is just another aspect of seeing the global auto industry, and the global economy, as it really is. Chinese automaker Geely Group stepped in when Ford stepped out in 2010, and Ford and General Motors have partnerships with Chinese manufacturers selling products to the rapidly growing China auto market. There's also the part about global automakers setting up production facilities in China and selling their own products in the market.

Whether or not A123 Systems survives, the federal grant and Chinese investment do seem to be pretty logical in the context of what's been happening lately. There might even be a few positives to this situation, such as accessing a larger investment pool and market for green vehicles and technologies, as well as forging more peaceful relations with China.



Source: Autoblog Green