Bad business partner or scapegoat? When it comes to battery maker A123 Systems and its role in Fisker Automotive's troubles, one conveniently anonymous source says its the former, alleging that the extended-range plug-in vehicle maker had plenty of problems of its own, Fox Business says.
Executives at Fisker, which made the high-end Karma, started blaming A123 for its production issues late last year, noting that Fisker had a hard time meeting inventory needs after A123 declared bankruptcy last October. Fisker further laid blame on A123 after the disclosure of a number of battery defects. Late last year, the US bankruptcy court OK'd Wanxiang's acquisition of 80 percent of A123 for $256.6 million. Earlier this year, Fisker and A123 reached a settlement in which Fisker's financial claims against A123's successor company were slashed to $15 million from $140 million.
Fisker, however, stopped making cars last July and sales of the Karma were far lower than expected, Fox Business says, citing the unnamed source. Fox Business says Fisker didn't respond to a request for comment, and A123 declined to comment.
Posted Jun 9th 2013 8:29AM