Chinese Firm Wins Bid For US-Backed Battery Maker 183
theodp writes "On September 13, 2010, President Obama called A123 Systems from the Oval Office to congratulate them on opening the nation's first manufacturing facility to mass-produce electric vehicle batteries, which the White House noted was made possible by a $249 million Recovery Act grant the company received the prior August. 'When folks lift up their hoods on the cars of the future,' the President said, 'I want them to see engines and batteries that are stamped: Made in America. And that's what you guys are helping to make happen.' But on Saturday, the assets of A123 Systems were auctioned off to the Wanxiang Group, a large Chinese auto parts maker. Wanxiang agreed to pay $256 million for A123's automotive and commercial operations, including its three factories in the United States. Forbes reports that A123's stock, which closed at 7 cents a share on Friday, is now worthless."
How could they go out of business? (Score:4, Interesting)
Re:And? (Score:5, Interesting)
Re:News for nerds (Score:5, Interesting)
If we add that A123 is the sole provider of batteries for the Fisker Karma [dowjones.com], would you start to care? That A123 is a provider of MW-scale batteries to AES Corp, [aesenergystorage.com] for use in windfarm smoothing and grid services?
I would have preferred that the government not gotten in the business of payouts to its campaign contributors [washingtonguardian.com], but elections have consequences. Usually corrupt consequences, but what can you do.
Re:And? (Score:3, Interesting)
You never know, this might be part of the trend in manufacturing returning to US soil; with ultra-cheap material from China sailed in through the great lakes, they can slap the stuff together with the help of minimum wage machine operators, keep the "Made in USA" label, and stick them in $100,000 cars with the profit sailing back to China (and probably some fresh water out of the lake while they are at it).
Free market advocates will be filling this thread with more vitriol about how it always backfires when the government picks winners or losers, but the Chinese will basically be the only source of battery technology in a future where everything relies on electricity... Are you OK with the free market picking the US as the loser?
Re:News for nerds (Score:5, Interesting)
There was an engineering professor in California named Terman who taught his students that they shouldn't just study the technology, they should also look at how to start a business, and keep their eyes out for opportunities.
Two of his students were Hewlett and Packard.
Re:And? (Score:4, Interesting)
What goes around... comes around. Let the Chinese and the Chinese government do all the R&D to stay competitive in the market and after they've suck billions into it, then let's reverse engineer it and make it here on the cheap.
Works both ways.