Federally Funded Battery Maker On The Auction Block - Should The Chinese Be Allowed To Bid?

The auction of battery-maker A123 Systems Inc., scheduled for Thursday, is expected to draw both U.S. and foreign bidders against the backdrop of growing pressure from military leaders and politicians to block U.S.-funded technology from being transferred outside the country — especially to a Chinese-affiliated company.

Two of the major players keen on acquiring A123's assets are Johnson Controls Inc. of Milwaukee, and Wanxiang Group Corp., a Chinese auto parts maker whose North American headquarters is in Elgin, Ill.

Johnson Controls, which was awarded $299 million in federal grants, has said A123's technology is in its early stages and will require further funding but that the company is committed to adding jobs in the U.S. It describes itself as "one of the last standing American companies competing in and building this U.S. advanced battery industry."

 

TheDepressingTruth - 12/7/2012 1:16:31 AM

+1 Boost

And how much Federal Money has A123 been given by the Obama Administration? Only 249.1 million.. (the last million 3 days before filling for bankruptcy) but still cheap compared to Solyndra...
So Wanxiang Group wants to buy it...so does Siemens AG of Germany and Tokyo- based NEC Corp.
This is more posturing, by the Republicans, than anything else...It won't go to the "High Bidder" as much as the "Best Connected"

vdiv - 12/7/2012 11:47:39 AM

+1 Boost

A123 drew only $132 million of the $249 million grant. Maybe if they drew all of it they could have survived the Karma battery fiasco.

You wonder by any chance why there are so many suitors lining up to gobble up A123? You don't think there is any value in it?! Is this why the suitors are willing to pay up a multiple of that grant (as in $450 million for an 80% stake)?

http://gigaom.com/cleantech/a123-auction-exposes-fears-of-china-and-politicization-of-electric-vehicles/

HughJass - 12/7/2012 4:39:31 PM

+1 Boost

Just as soon as ExxonMobil is allowed to purchase CNOOC since China is wide open for business and not a one way street.

We all know you can't buy Chinese companies so why should they be allowed to buy ours. They shouldn't even be allowed to trade with us.