A123 Systems may not be able to survive much longer as an independent company 5

The lithium ion battery maker is facing some steep losses as a result of slow uptake of hybrid and electric vehicles using its batteries and a major recall of Fisker Karmas.

While A123's latest financial filing raises doubts about its ability to continue as a going concern, I doubt the company will go away completely since they have some solid technology and several high profile customers including +BMW +General Motors and +Fisker Automotive. My guess is that some other big supplier or battery maker will scoop up A123 at a fire sale price within the next few months. I'd look for companies including Bosch, Continental or perhaps even TRW as suitors.

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A123 sees 'going concern' risk due to steep losses
DETROIT (Reuters) — Lithium-ion battery maker A123 Systems Inc. said on Wednesday there was "substantial doubt" about its viability because the company expects to burn through cash and repo…

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5 thoughts on “A123 Systems may not be able to survive much longer as an independent company

  • Anton Wahlman

    General Motors may buy AONE out of bankruptcy, if it comes to that. Probably pick it up on the death bed right before bankruptcy. Reason? The new Chevy Spark is based on AONE. Would be a shame to see that project delayed or otherwise jeopardized because of AONE insolvency.

  • Sam Abuelsamid

    +Anton Wahlman That's possible, but I think GM would only buy A123 as a last resort to protect the Spark program. To date GM has been more interested in keeping the pack design, electronics and battery management systems in-house while remaining more neutral on the cell chemistry. The cells are evolving so quickly that GM most automakers are only committing to a given supplier on a program by program basis. I think GM might be more likely to delay the Spark and switch to another cell supplier than to buy A123, especially if as rumored the recent explosion at the battery lab in Warren involved a Spark pack.

  • Anton Wahlman

    Most likely scenario is still that someone else rescues/acquires AONE. I sure hope the Spark isn't delayed. The darn thing is almost ready, and would be the first car on the road with the new combo AC/DC charger. I thought the internal GM pricing target was $28,995 before the various tax adjustments. GM published a lot of details about the motor, but did you see how many kWh the battery is?