A Chinese deep-pocket investor could be the solution to big problems faced by lithium ion battery maker A123 Systems (much connected to Fisker Karma recalls), at least for now. A123 Systems signed an agreement on August 8th with Wanxiang Group Corp. that could bring in a $450 million investment and give the large Chinese automotive components manufacturer an 80% ownership stake. The deal brings in the needed cash flow and places A123 Systems in the Chinese market with ample opportunities for vehicle electrification and energy storage. There are a few critics, though. Bob Lutz, the ex-vice chairman at GM who shepherded the Chevy Volt and who is now an investor in plug-in hybrid pickup maker Via Motors, had a few jabs to throw at the deal in a Forbes commentary, including this one: “There will be no need for a military conflict against an overwhelmingly superior force: the Chinese will simply buy the country, a little piece at a time.”
