A123 Expects Wanxiang Sale to Finish by February
Bankrupt battery manufacturer A123 Systems expects its sale to Chinese firm Wangxiang to be complete in a little over a week.
The sale raised controversy late last year because the company received $249 million in federal grants – money some saw as lost tax dollars. Despite concerns voiced by politicians including Republican member of Congress, Marsha Blackburn, the sale moved forward. Sensitive military contracts were siphoned off to another U.S. company as part of the deal, but for the most part A123 is in Chinese hands.
Agreements regarding the sale are expected to be settled by February 1 according to a press release from A123.
SEE ALSO: Chinese Company Wins Auction for A123 Systems
That could be good news for Fisker, the struggling manufacturer of the Karma luxury plug-in hybrid. Production halted for the brand more than six months ago for Scandinavian summer break. Fisker decided to renegotiate its contract with the plant’s workers, but before trouble with A123 cropped up before production could resume.
Fisker said previously that it had conserved enough of a battery supply to last through the first quarter of 2013, but that it hoped to re-negotiate its battery supply with Wanxiang soon.
Discuss this story at FiskerBuzz.com
Luke is an energetic automotive journalist who spends his time covering industry news and crawling the internet for the latest breaking story. When he isn't in the office, Luke can be found obsessively browsing used car listings, drinking scotch at his favorite bar and dreaming of what to drive next, though the list grows a lot faster than his bank account. He's always on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> looking for a good car conversation. Find Luke on <A title="@lukevandezande on Twitter" href="http://twitter.com/lukevandezande">Twitter</A> and <A title="Luke on Google+" href="http://plus.google.com/112531385961538774338?rel=author">Google+</A>.
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