A123 Systems' Cell Family

Johnson Controls changes tack in A123 Systems bankruptcy after Wanxiang opposition

The plan for A123 Systems to sell its assets to Johnson Controls met opposition from Wanxiang and Fisker Automotive, and now JCI is changing its approach and is offering to buy even more of A123's business.

Battery maker A123 Systems has had a rough year of battery pack failures that affected customers such as Fisker Automotive. That led to an expensive recall campaign, derailing the company's financial position, and subsequently a bankruptcy filing two weeks ago. On Friday, Fisker Automotive filed a motion seeking to delay the bankruptcy of A123 Systems, and the assets auction. Following that filing, according to the Associated Press, Johnson Controls has agreed to step away from its position as debtor-in-possession of A123 Systems.

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