A123 Systems was supposed to be one the U.S. companies to propel the green energy revolution … by designing, making, and supplying batteries to hybrids and electric cars (think Volts).
A123 received more than $200 million from venture investors before raising $378 million in a 2009 initial public offering.
Also in 2009, it was awarded a $249 million green-technology grant under the Obama administration’s $2.4 billion Electric Drive Battery and Component Manufacturing Initiative.
But, things haven’t been going so good for electric cars and A123.
A123 said second-quarter revenue fell 53 percent to $17 million … the company’s second-quarter loss of was $82.9 million … and cash dwindled to the point that the company can only fund its operations for the next four to five months.
So, according Auto News, China’s largest automotive parts supplier is now poised to take control of A123.
China’s Wanxiang Group Corp. plans to invest up to $450 million in A123 Systems, taking an 80 percent stake in A123.
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Ken’s Take: So much for energy independence and government venture capitalism.