Johnson Controls Appeals Sales of Bankrupted Hybrid Battery Supplier
www.chinatrucks.com: Johnson Controls Inc. filed an appeal Monday of last week's court decision approving Wanxiang's purchase of A123 Systems, the bankrupt hybrid battery supplier that supplies batteries for Navistar's eStar and other electric vans.
A123 Systems was founded out of research at the Massachusetts Institute of Technology and $100,000 in federal seed money in 2001. It became a darling of the "green" industry movement, securing $249 million in federal loan commitments in 2009, when an initial stock offering sold quickly and at high prices.
Not all the stimulus money was given to the company, but enough was that Gov. Mitt Romney added it to his list of wasted expenditures on green causes by the Obama administration.
A bankruptcy judge gave approval last week for Wanxiang to buy most of A123's assets. Because of its government contracting business, the sale to a Chinese-based Wanxiang has prompted critics to urge the government block the sale on national security and other grounds. Wanxiang points out, however, that the failed battery maker's government contracting business would go to another company based in the U.S.
The sale still requires approval from the Committee on Foreign Investment.
Johnson Controls was the initial bidder for A123 during the bankruptcy proceedings, but Wanxiang outbid them by about $5 million, with a bid of more than $256 million.
Johnson Controls said it is entitled to receive a breakup fee that was previously approved by the bankruptcy court. Last week, the bankruptcy court held Johnson Controls' breakup fee and expense reimbursement in escrow after creditors complained that the company was lobbying Congress to try to get the Chinese deal scuttled.
As Crain's Detroit Business reports, But Pin Ni, president of Elgin, Ill.-based Wanxiang America Inc., said the company has no intentions of letting A123's intellectual property run loose in China.
"We have not done a good job of explaining who we are," Ni said. "It's not like we walked across the China Sea yesterday. We've been here for almost 20 years, and Wanxiang is also the victim of the IP issue in China, and we have a very restrictive policy to protect our own IP, and we want to protect our interest" in A123.
In an editorial, Crain's Detroit says, "A federal panel may have the final say. If the deal fails, it should fail because U.S. interests could be hurt by the deal -- and not because of a knee-jerk, anti-Chinese action."
- Johnson Controls and Bohai Piston to Build 4th Automotive Battery Plant in China 2017-09-15
- Johnson Controls Ready to Further Explore China’s Automobile Aftermarket 2015-11-16
- Scania to Deliver 75 Battery Electric Trucks to ASKO in Norway 2020-05-27
- BYD to Deliver First 20 Electric Trucks to Ecuador 2020-03-10
- 130 CAMC Battery Swapping Heavy-duty Trucks Delivered to Xi’an for Operation 2020-03-06
- 35 Units Electric Heavy Trucks for Coal Transportation Arrived in Tongchuan 2020-02-06
- Volvo Develops Heavy-duty Electric Concept Trucks 2019-12-11
- XCMG Delivered Electric Mining Dump Trucks to Southwest China 2019-12-04
- Amazon Orders 100,000 Electric Trucks from Rivian 2019-09-29
Submit Your Requirements, We Are Always At Your Service.
- FAW Jiefang Rolls Off Its 8 Millionth Vehicle
- A New Truck for a New Era: Mercedes-Benz eActros Celebrates Its World Premiere
- ZOOMLION Looks to Expand the EU Market with Its New Factory Inaugurated
- CIMC Teams up with Shaanxi Automobile to Make a Flagship High-end SPV
- JAC Exhibited In Kazakhstan Auto Show
- XCMG Makes Global Top Three on KHL’s Yellow Table 2021 for the First Time
- Volvo Trucks and DFDS Cooperate to Run Electric Supply Chain Transports
- Foreign Envoys Come to Shaanqi for a Visit
- Auto Shanghai 2021 to Showcase Latest Products And Technologies
- Auto Shanghai 2021 to Open Its Doors
C&C Trucks Co., Ltd.
C&C Trucks Co , Ltd (C&C Trucks), located in Sanshan Economic Development Zone, Wuhu, Anhui Province, a holding company under China International Marine Containers (Group) Co , Ltd (CIMC), is a large heavy truck enterprise integrating the research and development, production
- Geely Yuan Cheng Reports 626% Rise in H1, 2021
- Foton January to June Sales Volume 411,962 Units,YOY 28.67 %
- China Truck Export Jumped by 133% from January to May
- Foton Overseas Sales Volume Breaks 30,000 Units in H1, Up 67.7% YOY
- UP!UP!UP!JAC Group’s Export Makes a Sharp Growth of 125% YOY in H1
- China’s Sales Volume of New Energy Heavy-duty Truck Reached 378 Units in May
- SHACMAN Sold 31,400 Units Heavy-duty Self-dumping Trucks in China in May
- Jiefang’s Sales Volume Reached 298,826 Units from January to May
- GWM’s Sales Volume in Australia and New Zealand Ranks Top Ten, Hitting a New H
- China’s Sales Volume of Heavy-duty Trucks Reached 193,000 Units in April