[Skibum]

A123, Fisker's battery supplier, is apparently having a rough go of it and "is seeking strategic alternatives."

http://www.nytimes.com/2012/05/16/business/a123-a-battery-maker-explores-market-alternatives.html?partner=yahoofinance

So...what does this mean for Fisker?

 

[drliu]

Good question... Hopefully A123 won't default on their obligation to replace all the defective Karma batteries before something 'strategic' happens to the company.

 

[doug]

Their fates are certainly intertwined. Problems with one causes problems with the other, making an unfortunate feedback loop.

 

[Sparky168]

Their fates are certainly intertwined. Problems with one causes problems with the other, making an unfortunate feedback loop.

There is nothing to worry about for A123, business wise.

A123 has $774M of tax loss reserve for a potential buyer. Now it is a question of how much is the company worth with their plants, patents, customer relationship and customer business prospect.

A123 will honor their contract, so much so, they had built too much capacity based on customer's projection and jumped to the first chance to replace battery pack for the $4 coolant clamps and the possible faulty battery. Give A123 the credit for that.

A123 has a great product (power density, life and safety) but unfortunately it was mismanaged. Shareholders are taking multiple hits. Business wise, no problem.

At the end, Fisker and A123 will resolve their problems. Shareholders not so much. :s

 

[matrix]

Good question... Hopefully A123 won't default on their obligation to replace all the defective Karma batteries before something 'strategic' happens to the company.

Sounds like it might be wise to go ahead and get that new battery now, rather than waiting?? :huh: