December 1, 2012

Unintended consequences

A123 company got a sweetheart 'loan' from the Obama administration and promptly declared bankruptcy. A123 made batteries for another Obama fave - Fisker. Now Fiskar has stopped production of it's electric car. From Popular Mechanics:
Fisker Suspends Production of the Karma
California-based Fisker Automotive has halted production of its plug-in hybrid Karma luxury sedan after battery provider A123 filed for Chapter 11 bankruptcy last month. The automaker says it is suspending production until a buyer is found for the failed battery manufacturer.

The news, first reported by Bloomberg yesterday, is yet another setback to the fledgling automaker, which lost 300 European-bound Karmas during Hurricane Sandy and continues to delay production of its mass-market mid-size Atlantic sedan.

Fisker will be waiting to see what happens when A123 is auctioned off on Dec. 6. Top suitors include U.S.-based JCI Industries and the Chinese Wangxing Group.
Just can't get a break. I'm surprised that Fiskar didn't have better oversight of A123's management -- if a vendor was that crucial, I'd be taking a close look at its books and business operations. Wonder if the auction is online -- would be interesting to see what is being sold off... Posted by DaveH at December 1, 2012 3:57 PM
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