Products & Solutions

Johnson Controls comments on A123 auction process

December 13, 2012 - While Johnson Controls withdrew from the auction process for A123 Systems, the company remains committed to its advanced battery business. The company appreciates the opportunity to have provided significant value to the A123 estate and creditors as the stalking horse bidder and believes it is fully entitled to the break up fees approved by the Bankruptcy Court on November 8, 2012.

Separately, the significant issue of U.S. regulatory approval required for any sale of A123 Systems to Wanxiang has been a constant challenge dating back to their original failed attempt at an agreement earlier in 2012 prior to bankruptcy. Johnson Controls has consistently maintained that national security questions tied to the core technology used in all of A123's businesses represent a risk to the sale which cannot be dismissed until resolved by the government review process. Johnson Controls shares concerns that have been voiced by members of Congress and other interested parties and therefore will continue to monitor this process, consistent with the bankruptcy rules. Should the sale of A123 Systems to Wanxiang not be completed for any reason, Johnson Controls will remain open to considering future opportunities to acquire relevant portions of A123’s assets as they may develop.

“Johnson Controls was founded in Milwaukee, Wisconsin more than 125 years ago. We have employees and operations in all fifty states and across all four of our businesses,” said Alex Molinaroli, president, Johnson Controls Power Solutions. “We want to reassure employees, customers and other stakeholders that we are committed to the creation of vital jobs, intellectual property and advanced battery technology in the United States.”

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Johnson Controls comments on A123 auction process
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