Unit of Wanxiang Group gets US approval to acquire A123 Systems

Article by Christian A., on January 30, 2013

The U.S. government gave its approval to China's largest auto parts maker to acquire A123 Systems Inc, a manufacturer of electric car batteries. Lawmakers have warned that this deal will permit the transfer of sensitive technology, which were developed using U.S. government funds. Several members of Congress and retired military leaders asked the U.S. committee to halt the sale since it endangers U.S. energy security.

A U.S. government committee on foreign investment had approved the sale of A123 to a U.S. unit of Wanxiang Group, the Chinese firm confirmed. Last December, Wanxiang agreed to pay $257 million for A123's automotive battery business and related assets in a bankruptcy auction where it beat out the U.S.-based company Johnson Controls Inc of Milwaukee.

However, the Committee on Foreign Investment in the U.S., a government body headed by the Treasury secretary, would still need to approve it before it can proceed. Wanxiang has now confirmed that the deal was approved by the CFIUS on Monday. Pin Ni, the president of Wanxiang America Corp, said that Wanxiang America is looking forward to finalizing the transaction and to continuing to cultivating the technologies that A123 has been developing.

The U.S. government had given A123 a $249 million grant as part of a stimulus program to support clean energy. Half of this money was not released. Last October, A123 filed for bankruptcy because of lower-than-expected demand for hybrid vehicles and technical problems.

Topics: a123

If you liked the article, share on:

Comments

Recommended

Kia is taking things a step further with the new Kia Stinger, which they first introduced at the 2017 Detroit Auto Show. With the specs given to us by the...
by - June 25, 2017
Earlier this week, Nissan revealed a teaser of the new 2018 LEAF’s interior, giving us an idea of what the electric vehicle has to offer. The company released a video...
by - June 25, 2017
The primary suggestion of a 4x4 ute from French company Peugeot was first revealed in 2016. Fifteen months later, the production version is launched. Now, Peugeot is not shying away...
by - June 24, 2017
The new Jaguar E-Pace crossover will soon hold its official launch on July 13 and is expected to arrive at the showrooms by early next year. It couldn’t have come...
by - June 24, 2017
As prices of the original Shelby Cobra have skyrocketed into astronomical proportions, there are firms like Superformance that serve replicas to consumers who demand the same levels of performance at...
by - June 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries