A123 Mass.-based company said on Wednesday that Wanxiang Group Corp., a Chinese conglomerate, agreed to acquire up to an 80% stake in return for an up to $450 million investment.http://online.wsj.com/article/SB1000087 ... 08486.html
This is not surprising to me, since the USA is "married" to China for so many export products that are more and more becoming higher tech manufactured products too. It's probable we will get continued lower pricing to A123 tech with more product shipping from China, and the USA plant can continue to wait/idle "grow slow" for a volume business to finally take hold here. This investment is good, imo, since A123 products will expand even faster in volume sales in China.
China's more planned and "command & control" directed economy can "mandate" & "subsidize" more growth in EV products and already is The Leader by far in volume and production vs USA, so A123's main business will continue to be in China. EV tech in the USA will continue to be for the wealthy & upper middle class in 4 wheel transport, unless quality foreign imports in volume drive prices down here. We no longer have the industrial base to rapidly drive prices lower vs China.
Learn to speak Chinese, have your children learn Chinese, realize China is the manufacturing giant that will win out in volume production. China is our strategic partner, and China will be the greatest powerhouse of manufacturing in our lifetime. It's in both our interests to be on friendly terms & share peaceful goals to help each other become better nations. The USA can still be great for R&D and production of products that depend on continued R&D, but once that tech can be transferred to China for volume production it will be. Even Japan has transferred a large percentage of its manufacturing to China, though the Japanese were traditional enemies/rivals of the Chinese for centuries.
Apple Computer anyone?
This has nothing to do with Labor Unions or high labor cost. Germany is a perfect example. It has everything to do with Wall Street, Foreign Investment vs USA Investment, and your "wonderful" politicians in DC controlled by this ideology that won't invest in its own population to expand the middle class. The wealthy class in the USA is far too powerful politically, and has already redistributed far too much wealth & power into their hands of control by destroying our own middle class and changing the rules/laws in their extreme favor to perpetuate their ruling class. Wall Street says they do "God's work"; they call it "creative destruction"... quiet arrogant and sociopathic, imo.
Imo, until the political climate changes in the USA to focus on reversing its rapidly shrinking middle class & preventing by active law enforcement the insane "criminal" greed of Wall Street's "legalized" financial rapes of the middle class & the corrupting power of far too much wealth in too few hands, then only the military industrial complex & aerospace & transportation favoritism that have the "political protectionism" will be decent manufacturing jobs for middle class "stability" that is already in far too limited numbers vs other worse options.
Maybe EV can expand enough to gain a permanent foothold of growth if fuel costs remain higher for other transport... but the cost performance ratio of EV batteries needs to double capacity for the same weight/volume & price we have now too.