U.S. government funded and nonetheless bankrupt battery maker A123 will be Chinese. China’s Wanxiang emerged as the successful bidder in December. All the deal needed was U.S. government approval. The deal has been approved, says Reuters.
According to the report, the U.S. government committee on foreign investment approved the sale. Some members of Congress and retired military leaders warned against transfer of sensitive technology to China. In blogging circles, the deal was pronounced as good as dead. It wasn’t.
Battery maker A123, hailed by Michigan Governor Jennifer Granholm as a contributor to “63,000 jobs,” praised by Senator Levin for hiring “thousands of employees by next year,” praised again by Senator Stabenow for creating “thousands of jobs for us in Michigan,” will power the creation of thousands of jobs in China instead.
A123 had received a $249 million grant from the U.S. government. Wanxiang did bid a similar amount, $257 million, and won against Johnson Controls.