U.S. Battery Company is Sold to China ( Archived) (38)

The Detroit News reports that China’s Wanxiang Group Corporation will acquire almost all of bankrupt A123 Systems Inc. for $256 million. The deal includes all of the American battery manufacturer’s grid and commercial business assets as well as the company’s facilities in Michigan, Massachusetts and Missouri. Meanwhile, Woodridge, Illinois-based Navitas Systems will purchase all of A123 Systems’ government contracts for $2.25 million.

Previously, Johnson Controls (An American owned company) was a leading bidder for the bankrupt EV battery manufacturer, but that company withdrew its bids from the bankruptcy auction after declining to match Wanxiang’s highest bid (Johnsons bid was $5 Million below Wanxiang's). But the final sale will be subject to approval by the bankruptcy court handling the case in Delaware, and some members of Congress have reportedly raised concerns over the sale.

Rep. Bill Huizenga, R-Michigan, said he was concerned about Wanxiang taking over A123 Systems because of the battery maker’s close ties with the US Defense Department. Huizenga has been quoted as saying, “I am concerned about the government of China having access to sensitive technologies being used by our military forces.”

This isn’t the first time we’ve heard those rumblings. Back in August, several US automotive executives said Wanxiang’s purchase of A123 Systems could put industry trade secrets at risk, including cutting-edge lithium-ion battery technology. Likewise, November saw US senators John Thune, R-South Dakota, and Chuck Grassley, R-Iowa, raise concerns over the Chinese company’s interest in the bankrupt battery maker.


Prior to A123's bankruptcy filing, Wanxiang attempted to purchase an 80 percent stake in the battery maker for $465 million.


A123 Systems received bailout money from U.S. Taxpayers, 24 months ago. Now they are being bought by China. The above offer of $465 Million is $200 Million more dollars that was offered prior to the bankrupcy filing. Why was the offer refused??? Now they will most likely own the company and Americans will be working for the Chinese! I wonder, do these Americans want to work for the Chinese?
Why was China even allowed to bid? Will the jobs remain here or shut down and moved to China where labor is cheaper?? This does not settle well with me.

How do YOU feel about it?

HL

may be the army will be the next item in the auction

They have probably already been auctioned off to the U.N. in the Patriot Act.

HL

If It can be outsourced it will be outsourced. Generally, White people are just not worth employing unless you absolutely HAVE to.

Look at it from the view of business; you have the modern White westerner, who is on average arguably the laziest, most impractical and silliest person to ever grace the Earth, then you have the Orientals in the East who work hard, are thrifty, sensible and study all the right things.

Which side would you invest in?

It's simple free market economics which the USA has always championed. I wonder how many of the people who share these sentiments bought Japanese cars and electronic goods in the past.

I shouldn't worry too much, it's a drop in the ocean.
The biggest owner of America's business in the UK and Europe

Despite the notoriety of Japanese investors, the British have the largest U.S. direct investment holding—with the Dutch not far behind—as has been the case since colonial times. In 1990 the United Kingdom held about 27 percent of foreign direct investment in the United States, significantly greater than Japan's 21 percent. The European Economic Community (EC) collectively holds about 57 percent. Moreover, according to research by Eric Rosengren, between 1978 and 1987, Japanese investors acquired only 94 U.S. companies, putting them fifth behind the British (640), Canadians (435), Germans (150), and French (113).

No guarrantees at all Guz.

There is more for these American workers to consider at this buyout.
I had a friend working for one of the Cola companies in Chicago for over 30 years. He was up in the ranks. The company was bought out by the Japanese. His workload was increased beyond measure, so much that he could no longer keep up with the demand. They FIRED him so they would not have to pay him his retirement benefits!!! They did this to many.

HL