Chinese Auto Parts Maker Buys A123 Systems

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After A123 Systems filed for bankruptcy in October a number of companies looked to buy its assets. Now a sale to Wanxiang Group, a Chinese auto parts manufacturer, has been confirmed by the bankruptcy courts despite some concerns in Congress. According to the president of Wanxiang’s fast-growing American subsidiary, Pin Ni, the Chinese company plans to invest heavily in A123 Systems, “We are committed to making the long-term investments necessary for A123 to be successful.” To allay any national security concerns, the government division, was sold to Navitas Systems, an American company. Navitas' purchase includes: acquiring the  A123 Systems Ann Arbor facility, its employees, plus another 11 engineers from A123's automotive business; patents held by A123 Systems' government unit; an undisclosed value of government contracts; and the ability to source cells and components from A123. Customers include the Department of Defense, Department of Energy and Department of Homeland Security.

Topics:  A123 Systems, China, National Security

Published In: Bankruptcy Updates, General Business Updates, International Trade Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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