A123 Systems: 'No assurance' it can continue to operate

e-beach said:
The bankruptcy filings do not include A123's subsidiaries outside of the U.S. But those assets also will be sold.
Click to expand...

Presumably this means that China will now effectively wholly own A123, as predicted in another thread a while ago........................
 
The Solyndra of the week is A123 Systems, an electric vehicle battery company based in Massachusetts. The firm also has battery plants in Michigan, where former Democratic Gov. Jennifer Granholm once heralded A123 as a federal stimulus “success story.” Former House Speaker Nancy Pelosi visited the company headquarters and hailed it as a “great example of how Recovery Act funding is helping American companies.” In addition to $249 million in Obama Recovery Act funds, Granholm kicked in another $135 million in tax credits and subsidies to bribe the company to keep jobs in her state. The company also received a $465 million lifeline from Chinese auto-parts maker Wanxiang Group Corp earlier this year.

http://www.bloomberg.com/news/2012-10-16/electric-car-battery-maker-a123-systems-files-bankruptcy.html

http://michaelgraham.com/archives/another-ldquo-green-jobs-rdquo-fiasco-for-obama-patrick/
 
e-beach said:
A123 Systems filed for bankruptcy protection and its automotive assets are being acquired by Johnson Controls for $125 million.
Click to expand...

So who is Johnson Controls?
http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=JCI
Company Description
5757 North Green Bay Avenue
P O Box 591
Milwaukee, WI 53209 USA
http://www.johnsoncontrols.com

Johnson Controls, Inc. engages in building efficiency, automotive experience, and power solutions businesses worldwide. Products/Systems and Services Building Efficiency The company’s Building Efficiency business engages in designing, producing, marketing, and installing integrated heating, ventilating and air conditioning (HVAC) systems, building management systems, controls, security and mechanical equipment. In addition, the Building Efficiency business provides technical services, energy management consulting and operations of entire real estate portfolios for the non-residential buildings market. The company also provides residential air conditioning and heating systems and industrial refrigeration products. The Building Efficiency business sells its control systems, mechanical equipment, and services primarily through the company’s global network of sales and service offices. The building controls and mechanical systems are sold to distributors of air-conditioning, refrigeration, and commercial heating systems worldwide. The company’s systems include York chillers, industrial refrigeration products, air handlers, and other HVAC mechanical equipment that provide heating and cooling in non-residential buildings. The Metasys control system monitors and integrates HVAC equipment with other critical building systems. The company offers a range of solutions, such as performance contracting under which guaranteed energy savings are used by the customer to fund project costs. In addition, it provides full-time on-site operations staff and real estate and energy consulting services. The company’s on-site staff typically performs tasks related to the comfort and reliability of the facility, and manages subcontractors for functions, such as foodservice, cleaning, maintenance and landscaping. Automotive Experience The company’s Automotive Experience business designs and manufactures interior products and systems for passenger cars and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The business produces automotive interior systems for original equipment manufacturers (OEMs) and operates approximately 230 wholly- and majority-owned manufacturing or assembly plants in 33 countries worldwide. Additionally, the business has partially-owned affiliates in Asia, Europe, North America, and South America. The Automotive Experience business’ products and systems include seating systems and components; cockpit systems, including instrument panels and clusters, information displays and body controllers; overhead systems, including headliners and electronic convenience features; floor consoles; and door systems. Power Solutions The company’s Power Solutions business supplies lead-acid automotive batteries for various types of passenger car, light truck, and utility vehicle. The company serves both automotive OEMs and the general vehicle battery aftermarket. The company produces lead-acid automotive batteries by producing approximately 130 million lead-acid batteries annually in approximately 70 wholly- and majority-owned manufacturing or assembly plants in 20 countries worldwide. Its product offerings also include absorbent glass mat (AGM) technology that powers start-stop vehicles, as well as lithium-ion battery technology for certain hybrid and electric vehicles. The Power Solutions business supplies batteries to various merchants in the battery aftermarket, including Advance Auto Parts, AutoZone, Robert Bosch GmbH, Costco, NAPA, O’Reilly/CSK, Interstate Battery System of America, Pep Boys, Sears, Roebuck & Co., and Wal-Mart stores. Automotive batteries are sold worldwide under private labels and under the company’s brand names (Optima, Varta, LTH, and Heliar) to automotive replacement battery retailers and distributors and to automobile manufacturers as original equipment. Strategic Alliances In January 2012, Johnson Controls Inc. announced that it has formed a development relationship with Harrison Spinks Beds Ltd. to integrate pocketed coil spring mattress technology into an automotive seat concept called ComfortThin. Competition Building efficiency: The company's competitors include Honeywell International, Inc.; Siemens Building Technologies, an operating group of Siemens AG; Schneider Electric SA; Carrier Corporation, a subsidiary of United Technologies Corporation; Trane Incorporated, a subsidiary of Ingersoll-Rand Company Limited; Daikin Industries, Ltd.; Lennox International, Inc.; Goodman Global, Inc; CBRE, Inc.; and Jones Lang LaSalle, Inc. Automotive experience: The company's competitors include Lear Corporation, Faurecia SA, and Magna International Inc. Power solutions: The company competes with Exide Technologies, GS Yuasa Corporation, East Penn Manufacturing Company, and Fiamm Group. History The company was founded in 1885. It was formerly known as Johnson Electric Service Company and changed its name to Johnson Controls, Inc. in 1974.
Click to expand...

Does this mean that we will be able to purchase (formerly) A123 cells in any neighborhood auto-parts store?
 
Jeremy Harris said:
Presumably this means that China will now effectively wholly own A123, as predicted in another thread a while ago........................
Click to expand...

That probably depends on the profit / loss / political landscape ratio's of manufacturing in China by a USA conglomerate versus manufacturing some where else where the Chinese government has no say in the matter.

In other words, it is still "up in the air."
 
But my curiosity still prevails. What happened? Did they invest in growth and demand didn't follow? Is excessive spending in R&D the issue? The numbers tossed around in this thing are not lunch money, we are talking some serious cash that was somehow mishandled.
 
That totally sucks.

My tax money going down the drain.

Upside is, the bankrupt A123 is being purchased by Johnson Controls. Johnson Controls makes Walmart lead acid batteries and Optima batteries. I think Johnson Controls is OK financially. Maybe we will see A123 NXT technology in another reincarnation.
 
scphantm said:
But my curiosity still prevails. What happened?
Click to expand...

Two components to the failure were the expense of the Fisker battery recall and the sluggish sales of electric vehicle.
 
Holy Smokes!

http://autos.yahoo.com/blogs/motoramic/battery-builder-a123-won-249-million-federal-grant-143806554.html
 
Richard Muller's book on energy convinces me that cars powered primarily via lithium battery will not be economical in the foreseeable future, so you could say that your tax money was wasted long ago.
 
http://www.autonews.com/apps/pbcs.dll/article?AID=/20121016/OEM10/121019885/a123-files-for-bankruptcy-plans-to-sell-automotive-battery-business&cciid=email-autonews-blast

Lithium-ion battery maker A123 Systems Inc. filed for Chapter 11 bankruptcy protection today in U.S. Bankruptcy Court in Delaware and said Johnson Controls Inc. has agreed to acquire its automotive battery business.

To facilitate the purchase, JCI is providing A123 $72.5 million in post-bankruptcy financing to continue operations through the court process, the companies said in a statement. The total transaction price is $125 million, the statement said.

A123 said an earlier deal to sell an 80 percent stake in the company to China's Wanxiang Group had fallen through.

The JCI deal includes A123's two battery plants in suburban Detroit. The company employs 700 people in Michigan. Johnson Controls already operates a lithium-ion plant in Holland, Mich.

JCI also will also acquire A123's cathode powder plant in China and its stake in Shanghai Advanced Traction Battery Systems Co., a joint venture with Shanghai Automotive.

In the Chapter 11 filing, A123 said it owes millions to hundreds of debtors, including the Michigan cities of Livonia, Novi and Romulus. A123 holds $376 million in debt with about $459.8 million in assets. Its largest debtor is U.S. Bank, which A123 owes $142.8 million.

"We believe the asset purchase agreement with Johnson Controls, coupled with a Chapter 11 filing, is in the best interests of A123 and its stakeholders at this time," A123 CEO David Vieau said in the statement.

"As we move through this transaction process, we expect to continue operating and working with customers and suppliers," he added.

JCI's vision

Johnson Controls' interest in A123 Systems dovetails with the company's "commitment to the development of the advanced battery industry," Alex Molinaroli, president of the company's power solutions unit, said in the statement.

"Requirements for more energy efficient vehicles continue to increase, which is driving automotive manufacturers to pursue new technologies across a broad spectrum of powertrains and associated energy storage solutions," the statement said. "We believe that A123's automotive capabilities are a good complement to our existing portfolio and will further advance Johnson Controls' position as a market leader in this industry."

Rich Kwas, an automotive analyst for Wells Fargo Securities, said the deal makes sense for JCI because it "will broaden the company's lithium-ion technology offering and enhances its scale."

"Longer-term, the transaction should further solidify JCI's position in advanced batteries," Kwas wrote in a statement today. "According to A123's investor presentation, the company has 22 transportation programs that were sourced for production or in production spread across both commercial and light vehicle OEMs."

A123's filing comes one day after the Waltham, Mass.-based company filed a document with U.S. Securities and Exchange Commission stating that it would default today on payment for $143.8 million of notes that expire in 2016.

"The company may not have sufficient cash to fund operations and may need to seek the protections provided under the U.S. Bankruptcy Code," A123 said in the filing. "No assurance can be given that the company will be able to avoid restructuring, reorganization, or a bankruptcy filing."

A123 received a $249.1 million federal grant in 2009 to build its Livonia plant, but has struggled since, posting 14 straight quarterly losses.

Wanxiang deal fails

In August, A123 announced a deal with China-based Wanxiang Group Corp. that would provide A123 $465 million in financing for an 80 percent stake. But the deal required approval from the U.S. and Chinese governments -- which had not happened.

"We determined not to move forward with the previously announced Wanxiang agreement as a result of unanticipated and significant challenges to its completion," Vieau said in the statement.

A123 reported a second-quarter loss of $83 million. In July, A123 said it had only five months of cash remaining.

Battery troubles

A123's troubles in part stem from the failure of its lithium-ion batteries -- a Fisker Karma plug-in hybrid fitted with an A123 battery failed during an April test by Consumer Reports. Replacing the defective batteries is expected to cost A123 $66.8 million, including a $15 million inventory charge. The announcement devastated A123's stock price, which as of Monday had fallen 85 percent this year.

The problem was linked to incorrect calibration of an automated welding machine in Livonia. The flaw could cause an electrical short, leading to battery failure, the company said.

The bankruptcy filing may fuel further political debate over government financing of alternative-energy and transportation businesses. Federal grants and loans to companies including A123, Fisker and Tesla Motors Inc. have drawn scrutiny from congressional Republicans following the September 2011 bankruptcy filing of solar-panel maker Solyndra LLC two years after it received a $535 million loan guarantee from the U.S. Energy Department.

President Barack Obama called A123 CEO David Vieau and then-Michigan Gov. Jennifer Granholm during a September 2010 event celebrating the opening of the plant in Livonia, west of Detroit, that the company received the U.S. grant to help build.

Obama's call

"This is about the birth of an entire new industry in America -- an industry that's going to be central to the next generation of cars," Obama said in the phone call, according to a transcript provided by the White House. "When folks lift up their hoods on the cars of the future, I want them to see engines and batteries that are stamped: Made in America."

Electric-vehicle sales since 2011 totaled fewer than 50,000 through September, just 5 percent of Obama's target to have 1 million such vehicles on U.S. roads by 2015.

Republican presidential candidate Mitt Romney said last month that Obama has picked "losers" for alternative-energy loans and grants. His running mate, Paul Ryan, has called for all green-energy subsidies to be eliminated.

Read more: http://www.autonews.com/article/20121016/OEM10/121019885#ixzz29TsNNGN8
Click to expand...


Personally I am pretty bummed, A123 was always the most robust battery I have had a chance of dealing with!
 
A123 Filed for bankruptcy:

http://endless-sphere.com/forums/viewtopic.php?f=15&t=44721

Lithium-ion battery maker A123 Systems Inc. filed for Chapter 11 bankruptcy protection today in U.S. Bankruptcy Court in Delaware and said Johnson Controls Inc. has agreed to acquire its automotive battery business.

To facilitate the purchase, JCI is providing A123 $72.5 million in post-bankruptcy financing to continue operations through the court process, the companies said in a statement. The total transaction price is $125 million, the statement said.

A123 said an earlier deal to sell an 80 percent stake in the company to China's Wanxiang Group had fallen through.

The JCI deal includes A123's two battery plants in suburban Detroit. The company employs 700 people in Michigan. Johnson Controls already operates a lithium-ion plant in Holland, Mich.

JCI also will also acquire A123's cathode powder plant in China and its stake in Shanghai Advanced Traction Battery Systems Co., a joint venture with Shanghai Automotive.

In the Chapter 11 filing, A123 said it owes millions to hundreds of debtors, including the Michigan cities of Livonia, Novi and Romulus. A123 holds $376 million in debt with about $459.8 million in assets. Its largest debtor is U.S. Bank, which A123 owes $142.8 million.

"We believe the asset purchase agreement with Johnson Controls, coupled with a Chapter 11 filing, is in the best interests of A123 and its stakeholders at this time," A123 CEO David Vieau said in the statement.

"As we move through this transaction process, we expect to continue operating and working with customers and suppliers," he added.

JCI's vision

Johnson Controls' interest in A123 Systems dovetails with the company's "commitment to the development of the advanced battery industry," Alex Molinaroli, president of the company's power solutions unit, said in the statement.

"Requirements for more energy efficient vehicles continue to increase, which is driving automotive manufacturers to pursue new technologies across a broad spectrum of powertrains and associated energy storage solutions," the statement said. "We believe that A123's automotive capabilities are a good complement to our existing portfolio and will further advance Johnson Controls' position as a market leader in this industry."

Rich Kwas, an automotive analyst for Wells Fargo Securities, said the deal makes sense for JCI because it "will broaden the company's lithium-ion technology offering and enhances its scale."

"Longer-term, the transaction should further solidify JCI's position in advanced batteries," Kwas wrote in a statement today. "According to A123's investor presentation, the company has 22 transportation programs that were sourced for production or in production spread across both commercial and light vehicle OEMs."

A123's filing comes one day after the Waltham, Mass.-based company filed a document with U.S. Securities and Exchange Commission stating that it would default today on payment for $143.8 million of notes that expire in 2016.

"The company may not have sufficient cash to fund operations and may need to seek the protections provided under the U.S. Bankruptcy Code," A123 said in the filing. "No assurance can be given that the company will be able to avoid restructuring, reorganization, or a bankruptcy filing."

A123 received a $249.1 million federal grant in 2009 to build its Livonia plant, but has struggled since, posting 14 straight quarterly losses.

Wanxiang deal fails

In August, A123 announced a deal with China-based Wanxiang Group Corp. that would provide A123 $465 million in financing for an 80 percent stake. But the deal required approval from the U.S. and Chinese governments -- which had not happened.

"We determined not to move forward with the previously announced Wanxiang agreement as a result of unanticipated and significant challenges to its completion," Vieau said in the statement.

A123 reported a second-quarter loss of $83 million. In July, A123 said it had only five months of cash remaining.

Battery troubles

A123's troubles in part stem from the failure of its lithium-ion batteries -- a Fisker Karma plug-in hybrid fitted with an A123 battery failed during an April test by Consumer Reports. Replacing the defective batteries is expected to cost A123 $66.8 million, including a $15 million inventory charge. The announcement devastated A123's stock price, which as of Monday had fallen 85 percent this year.

The problem was linked to incorrect calibration of an automated welding machine in Livonia. The flaw could cause an electrical short, leading to battery failure, the company said.

The bankruptcy filing may fuel further political debate over government financing of alternative-energy and transportation businesses. Federal grants and loans to companies including A123, Fisker and Tesla Motors Inc. have drawn scrutiny from congressional Republicans following the September 2011 bankruptcy filing of solar-panel maker Solyndra LLC two years after it received a $535 million loan guarantee from the U.S. Energy Department.

President Barack Obama called A123 CEO David Vieau and then-Michigan Gov. Jennifer Granholm during a September 2010 event celebrating the opening of the plant in Livonia, west of Detroit, that the company received the U.S. grant to help build.

Obama's call

"This is about the birth of an entire new industry in America -- an industry that's going to be central to the next generation of cars," Obama said in the phone call, according to a transcript provided by the White House. "When folks lift up their hoods on the cars of the future, I want them to see engines and batteries that are stamped: Made in America."

Electric-vehicle sales since 2011 totaled fewer than 50,000 through September, just 5 percent of Obama's target to have 1 million such vehicles on U.S. roads by 2015.

Republican presidential candidate Mitt Romney said last month that Obama has picked "losers" for alternative-energy loans and grants. His running mate, Paul Ryan, has called for all green-energy subsidies to be eliminated.

Read more: http://www.autonews.com/article/20121016/OEM10/121019885#ixzz29TsNNGN8
Click to expand...
 
Wow. I know I have no fallback for batteries.

Who else makes small cells that have big power density? Is there anything out there alike the 26650, small'ish, yet being able to pull 70a continuous, charge at 4C? There are batteries with better energy density now, but in terms of rugged reliable lithium-* batteries, it seems like A123's nanoscale has always been leaps and bounds better than what everyone else is doing.
 
And here: http://endless-sphere.com/forums/viewtopic.php?f=1&t=44714

AND here: http://endless-sphere.com/forums/viewtopic.php?f=14&t=44719

AND HERE: http://endless-sphere.com/forums/viewtopic.php?f=14&t=44717 .................................................
 
Do we need all these threads about this? We now have four threads running on the same topic..................
 
ohzee said:
quick someone make a new post regarding this topic
Click to expand...

No, I reckon repeating it four times is enough..................

Sorry, miscounted, there are now FIVE bloody threads running on this!
 
rektide said:
Wow. I know I have no fallback for batteries.

Who else makes small cells that have big power density? Is there anything out there alike the 26650, small'ish, yet being able to pull 70a continuous, charge at 4C? There are batteries with better energy density now, but in terms of rugged reliable lithium-* batteries, it seems like A123's nanoscale has always been leaps and bounds better than what everyone else is doing.
Click to expand...

Dow-Kokam?
 
rektide said:
Wow. I know I have no fallback for batteries.

Who else makes small cells that have big power density? Is there anything out there alike the 26650, small'ish, yet being able to pull 70a continuous, charge at 4C? There are batteries with better energy density now, but in terms of rugged reliable lithium-* batteries, it seems like A123's nanoscale has always been leaps and bounds better than what everyone
else is doing.
Click to expand...

http://peakbattery.com/, ????????
 
They first sold all the invintory to China so all that left is the heavy equment that they can't get in a car or thru the back door. If it's Mich. those guys aready piss in the machines. probaly all froze up. Then sold all the stock to china. For victpower vendors. Hay where's a good place for full tab pouches 20ah ?
 
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