Sometime back, A123 Systems, Inc.(NASDAQ:AONE) was
favorably viewed as a company that was going to change the face of the auto
industry by providing Americans with battery-powered cars. However, after the
initial, hullabaloo over electric cars died down, several factors surfaced such
as development slowing down due to unexpected issues with battery technology,
concerns about vehicles that might leave consumers stranded after the battery
runs out, and astronomical expenses of electric cars.
The company filed for Chapter 11 bankruptcy on
Tuesday. It had begun well by manufacturing lithium-ion batteries for power
tools, and using this leverage had tried to generate large packs of batteries
for vehicles. Big players like General Electric were interested and a grant
from the US Government to build a plant in Michigan was also approved in 2009.
The Obama administration, about 3 years back, had
set a target that one million electric or plug-in vehicles will be out on
American roads by 2015. The goal was way too optimistic to be achieved, given
the financial and other types of constraints. Nissan and General Motors have
sold 9,674 Leaf electric cars and 7,671 rechargeable Volt compacts, which is a
drop in the bucket comprising 12.8 million light vehicles.
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