Fisker’s battery supplier, A123, has hit troubled times recently. Things were looking up after it secured a $450 million deal with Wanxiang Group Corp, however, that fell through and the company has since filed for bankruptcy protection. It seems to have got off to a promising start though, having sold off its automotive business to Johnson Controls, another well known battery manufacturer.
For the price of around $125 million it appears that Johnson Controls has bought A123’s Fisker, GM, and BMW contracts. The deal includes a $72.5 million advance to A123 just to keep the company afloat. No timetable for completion has been set although we’re sure that A123 and Fisker will want this to proceed as soon as possible.
Fisker already announced that the upcoming Atlantic has been delayed, expect this to impact further upon the company’s ability to acquire battery units. Hopefully by the end of the transition period, Fisker and their battery supplier will be in a better position!