A123 to Replace Defective Batteries (AONE)
Lithium ion battery maker A123 Systems Inc. (NASDAQ: AONE) has announced a field campaign to replace modules and battery packs that may contain defective cells. The defect may result in premature failure of the module or pack, and is limited…
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The replacement program will cost A123 an estimated $55 million, a cost the company can barely afford given the recent cancellation of its supply deal with Fisker Automotive and the company’s poor performance last quarter. A123 recently announced a deal to supply battery cells to China’s Geely Automotive to be used in Geely’s plug-in hybrid electric vehicles slated for launch in 2014.
Shares of A123 are down nearly -11% this morning, at $1.52 after posting a new 52-week low of $1.48 earlier. The 52-week high is $7.87.
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.