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

Here are some things that potential buyers of the Ford F-150 and Ford Expedition could look forward to for the 2018 model year. The 2018 models of the F-150 pickup...
by - August 15, 2017
We first saw the McLaren 720S earlier this year when it made its debut at the Geneva Motor Show, and we all agree that it is a beautiful car. But...
by - August 15, 2017
It has been six years since Lexus introduced the current generation of the CT 200h hybrid. For the 2018 model year, the current CT 200h lives through with some minor...
by - August 15, 2017
What happens when an auto company finds that a certain offering is not selling enough to make a good business case? Continuing to build and sell such vehicle would only...
by - August 14, 2017
It looks like that Audi is in the final stages of finalizing its new Audi Q8 sports utility vehicle. While the German premium carmaker has yet to reveal the looks...
by - August 14, 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