Tuesday, October 16, 2012
Fisker Battery Supplier A123 Files For Bankruptcy
A123 Systems, the electric battery supplier for Irvine-based electric auto firm Fisker Automotive, has filed for Chapter 11 bankruptcy, as A123's woes finally took down the company, and a failed rescue by a Chinese firm fell through. Fisker Automotive was the flagship customer for A123. Both firms suffered a huge black eye last year after defective cells in A123's batteries resulted in a huge recall on Fisker's Karma sedan. A123--which is based in Waltham, Mass.--said in a statement that the move came due to "unanticipated and significant challenges" in its deal with Chinese firm Wanxiang. Instead, A123 said that it will sell its assets to Johnson Controls in a deal worth $125M. It's unclear how the bankruptcy filing and sale will affect Fisker.