In addition to those trying to buy the company in toto there are also reported to be a number of interests looking to salvage individual pieces of the battery company, like its brand new but well underutilized factory in Holland, Michigan. If either NEC, Siemens or Wangxiang wins the auction they would probably still need the approbation of the Committee on Foreign Investment in the United States. The U.S. government has also indicated that it will have to approve any purchase that involves transferring the $249 million Dept. of Energy grant that A123 was given. All of the bodies that have to give their approval are in the executive branch, so politics may enter into the decision. The Pope is also a Roman Catholic and bears indeed defecate in the woods. National security is a part of the equation as well because A123 has at least one contract for the Pentagon that is classified. All of that seems to favor the one domestic bidder, Johnson Controls.

When we reported that battery maker A123 had filed for bankruptcy, a lot of people thought that Johnson Controls is in control, and that Chinese Wanxiang is out. No and no, writes Reuters star car reporter Norihiko Shirouzu. Wanxiang still wants A123, and Johnson Controls is just one bidder in a Chapter 11 process, says Reuters.

China’s Wanxing had offered $465 million for all of A123. A123  agreed to sell its automotive operations, including two factories in Michigan, for $125 million to Johnson Controls. That “deal could be countered by other offers that would be more beneficial to A123′s creditors,” Jefferies analyst Peter Nesvold said in a research note. “Wanxiang is the most likely other participant in this process, and we are not aware of other suitors at this time.” A123’s creditors most likely would prefer someone who pays $465 million for all of A123 instead of someone who pays $125 million for a part of the company, with no takers for the rest.

In August, Wanxiang had announced its intentions to take over A123. The Chinese company immediately gave A123 a $22.5 million loan, including a cash advance of $12.5 million. Wanxiang offered more money, based on a list of requirements, including approval from the Committee of Foreign Investment and the Chinese government, as well as the absence of any default. “Shortly before filing for bankruptcy, it became apparent that A123 would fall short of some of those conditions,” Reuters remarks dryly. The bankruptcy tripped another circuit breaker.

Reuters also remarks that “A123 Systems, which won a $249 million U.S. government grant in 2009 for jump-starting its business” wanted to sell to Johnson Controls, which is “another recipient of federal green subsidies.”

Want a small electric car that looks like a movie theater or even a stadium inside?  Johnson Controls shows the ie.3 concept car at NAIAS. Sure, it has a battery. But it also has spring loaded flip-up seats, just like at the movies. Or at he ballpark.

Johnson Controls says the flip-up seats create something that is sorely needed in small cars: Space. You can put some suitcases on the floor when the seats are flipped up. Johnson Controls produces batteries and interiors for vehicles. But they don’t make cars. “The ie:3 could be an attractive model for electric car buyers, although unfortunately it won’t go on sale,” writes an impressed Independent.

Maybe some other automaker will take them up on the idea. Flip a coin?