Jump to content
Forums Gone... but not forgotten!
Pontiac of the Month

2 Firebirdz's 1968 Firebird

2024 July
of the Month

  • Rev up your passion for Pontiacs and join our vibrant community of enthusiasts!

    Whether you're a die-hard fan of classic muscle cars or you've got a soft spot for sleek modern models, you've found your home here at Forever Pontiac. Our community is dedicated to celebrating everything Pontiac, from the iconic GTO to the legendary Firebird and everything in between.

    Unlock access to expert advice, stunning photo galleries, engaging discussions, exclusive events, and more!

    Start your Pontiac journey with us today!

    Sign up now! 🏁

RSS Report: Battery maker A123 systems defaults on loan, files for bankruptcy


Recommended Posts

  • Founders

Filed under: Hybrid, Government/Legal, Hirings/Firings/Layoffs, Technology, BMW, Earnings/Financials, Fisker, Electrica123systems-issue-idusl3e8i62zm20120706.jpeg

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.

In a press release issued this morning, A123 announced that it will sell off all automotive assets to Johnson Controls. A123 will file Chapter 11, while Johnson Controls will provide $72.5 million in debtor-in-possession financing. The aim of the financing is to support A123 while it attempts to pursue alternative business operations.

To anyone following the battery maker closely, this news should not come as a shock. It was estimated that A123 lost about $67 million dealing with a battery recall for the Fisker Karma. In May of this year, the company posted a $125 million net loss. Shares for A123 have fallen 85 percent this year as the company has posted 14 straight quarterly losses.

With news of the bankruptcy, it wouldn't be surprising if A123 were be brought up in tonight's presidential debate. A123 received $249 million in federal grant money in 2009. The company also received $100,000 in 2006 under the Bush Administration, and additional tax exemptions and credits during Mitt Romney's time as a Massachusetts governor, so this issue has many sides.

For Fisker, the issue at hand is finding a new battery supplier. Johnson Controls has had previous hybrid ventures and continues to explore lithium-ion batteries. This could be an opportunity for the Milwaukee-based company to expand that part of its business, perhaps replacing A123 as Fisker's battery supplier.

Continue reading Battery maker A123 systems defaults on loan, files for bankruptcy

Battery maker A123 systems defaults on loan, files for bankruptcy originally appeared on Autoblog on Tue, 16 Oct 2012 13:29:00 EST. Please see our terms for use of feeds.<h6 style="clear: both; padding: 8px 0 0 0; height: 2px; font-size: 1px; border: 0; margin: 0; padding: 0;"></h6>Permalink | Email this | Comments



autoblog?i=QFcfBJYfWpE:ho7lHCNnFoc:wF9xT3WuBAs</img> autoblog?i=QFcfBJYfWpE:ho7lHCNnFoc:V_sGLiPBpWU</img>QFcfBJYfWpE


Link to comment
Share on other sites

Tired of these Ads? Register Today!

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Tired of these Ads? Purchase Enhanced Membership today to remove them!
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.