Wanxiang Group will finance money, as much as $450 million to the A123. A manufacturer of the batteries made up of lithium ion used in the electric cars.
In an interview given by the CEO A123, David Vieau “the funds gather from the federal can be used only for the purpose of creating job opportunities as well as used in the constructing factories in the North part of the Americas. And this is only the first step to achieve our mission by lending money to the company”.
As A123 get the possibilities for USA from the Chinese company this may lead to the disputes on the political ground, as the financing of alternative power along with the transportation businesses over the government.
The financing agreement of the the A123 with Wanxiang will possibly give rise to the concerns related to the security, said by the Stearns writer of the pending bill with the intention to avoid the condition’s like in Solyndra’s.
In a statement trough e-mail, Stearns said; “It seems that the Department of Energy as well as the government of the Obama has failed to maintain the security of the sensitive taxpayer funds intellectual assets to get transferred to the adversary of the foreign department.
Stearns said “there is surely a concern needed regarding the foreign-controlled or the companies that are owned by the foreign companies that are trying to attempt the profit from the supply chain of the country”. He also said ” all of us also required to be alert that the federal government should not be an ignorant assistant to thrift the secret of our nation by giving them loans and grants of multimillion-dollar.
As 12 direct quarterly losses were shown by the A123company. And all what a company wants a financial lifeline after having a long fight with the price of batteries recollection of the Fisker (a luxury carmaker) for plug-in hybrid.
“There is an unpredictable debate by the politicians on the issue of the Wanxiang agreement” In the view of a market analyst at Needham & Co Mr. Michael Lew in the New York.
“If the lawmakers are already talking about this topic, then you can assume from itself that how this all would come out” revealed by Lew who recommends holding shares of the company A123.
“May be this company is owned by a Chinese company, but what actually matters is that all the manufacturing of the products are in US and more often the jobs are in hand of our people” Lew said.
” And the last goal of the job creation or even a manufacturing fostering as well as laying a hand in the economic atmosphere of the states”, also said by the Lew in the statement.