A123 Files For Bankruptcy, Johnson Controls To Take Over

Derek Kreindler
by Derek Kreindler
a123 files for bankruptcy johnson controls to take over

Reuters reports that battery maker A123 Systems is filing to bankruptcy protection in Delaware.

The company has received cash infusions from China earlier this summer, and its financial situation has been precarious, to say the least. Political controversies were also part and parcel of the story, as with any green energy project today, and A123 received a $249 million dollar grant from the Obama administration in 2009. A123 supplied battery technology to Fisker and General Motors.


Johnson Controls will be purchasing the remnants of A123, while providing $72.5 million in funding to help A123 continue operations as it goes through bankruptcy proceedings.

Crain’s Detroit Business is reporting that

Under the deal, the Waltham, Mass-based A123 will pay to license technology its own grid, commercial and government technologies from JCI.

Presumably, A123’s brand will carry on under the JCI empire. That won’t do much for the beleaguered battery company, which apparently posted 14 consecutive losing quarters, and has $376 million in debt versus $459.8 million in assets. In the filing, A123 noted

“The company may not have sufficient cash to fund operations and may need to seek the protections provided under the U.S. Bankruptcy Code…No assurance can be given that the company will be able to avoid restructuring, reorganization, or a bankruptcy filing.”

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  • SCE to AUX SCE to AUX on Oct 16, 2012

    Good thing Johnson Controls is there to keep the lights on at A123, but it probably won't be the same company once the dust settles.

  • Cheezeweggie Cheezeweggie on Oct 17, 2012

    this is a political rant pretending to be a car blog.

  • Sooper Toyota already has no new vehicles on their lots; they are just another used car dealership now. So why introduce another model when Toyota appears to be going out of the new vehicle business?
  • Tassos There is nothing 'weird' about Finland's fine system. A few other nations have it too. Switzerland maybe, I am not sure.But you do not specify WHAT was that clown's income that required him to pay $120k for a speeding ticket?I am sure that for somebody like ELon Musk, $100k will barely operate his megayacht ONE LOUSY Day.
  • Bkojote On paper, GMC is supposed to be the understated, more sophisticated member of the GM truck family.In actuality, GMC is total garbage in the truck world - by the time they're on their second owner they're decked out with amazon wheel spacers, pizza dish wheels, punisher stickers, and really angry opinions about any president who's won the popular vote in the past two decades. And man, these things are ugly as sin too.That's because GM trucks as a whole are kinda the also-rans in the truck category. Yeah, they do sales, but they aren't anyone's first choice. Not as extreme as the Ram, not as category defining as the Raptor, not as well engineered as a Toyota, so you end up with owners who compensate big time to distract others from the endless repair bills. The only owners I know who are worse are the rollin' coal lifted Super Duty drivers. Like you bought a GMC because the guy who sold you your wife's acadia is less scary than having to grovel for a Raptor and you take the Ford guys making fun of you personally.
  • Tassos The rich get richer and the poor get poorer. I have mentioned this before, and it applies here again.Go to the U of Michigan College of Engineering parking lot. How can you say what car the $300,000 a year (ACADEMIC year of 9 months, mind you, summer pay is extra, and consulting a whole lot on top of that) and what does the $50,000 a year secretary drive?Hint: Teresa was out chair's secretary, started a year ago. She had to resign in just a few months because her 75 mile EACH WAY from her home in Lapeer MI to ANn Arbor MI just KILLED HER when gas prices rose.What car did Teresa drive? Take a wild guess. An F150? A Ram pickup? A Silverado? One of these. In a fee months she had to resign and find a lesser job in the whole lot lesser U of M Flint (but why would she care? she's just a secretary), which halved her commuting distance to a still significant 75 mile round trip every damned day.So the poor keep buying pickups and get poorer, and the rich keep NOT buying them and get richer.
  • Cprescott It is ugly enough. But why? You refuse to build enough of your products for your consumers.