At a bid of $250 million, Wanxiang purchased battery maker A123 out of bankruptcy. Wanxiang outbid other companies including Johnson Controls, Inc. and NEC Corp. A123’s government and military contracts were a major concern for many close to the auction; however, Wanxiang did not purchase those items as part of its bankruptcy bid. Those contracts were purchased by another company in a separate bid. Wanxiang has said that it will not lay off workers.
A123 is the second American battery company to be sold to a foreign purchaser. For more about this sale see “Wanxiang wins auction for assets of battery maker A123.”