A123 Replacing Batteries That Led to Fisker Karma Shutdown - lifepo4 battery pack 12v

A123 Systems
The company said it would replace defective battery packs and modules for customers including Fisk Motors
, The defect caused Fisker Karma to close in the consumer report Test.
The company said in a statement that A123 has started building replacement modules and is expected to start shipping to customers this week.
The company estimates that replacing batteries and systems shipped to the world from the livornia a123 plant in Michigan will cost about $55 million and will receive funding in the coming quarters.
David Vieau, the company's chief executive, told reporters in a conference call today that five customers may be affected by defects.
Vieau said the root cause of the shutdown of the $107,000 Fisker Karma model tested in this month's Consumer Report was related to a123's defective battery and did not name other customers.
"When the initial fast ramp --
In order to meet the needs of our customers, our business in Michigan is close
"We are confident in our ability to overcome these problems," he said in a conference call . ".
A123 expects that the cost of replacing the battery system will "require us to adjust our fundraising strategy," Vieau said, without details.
He said the company will provide the latest prospects at its next quarterly earnings call.
A123 fell 12% to $1.
At the close of New York, it was the lowest closing price since the IPO on September 2009. Fisker’s plug-
Closed after consumers reported the purchase of assessed luxury cars after only 180 miles (290), Yonkers, New York-
According to the magazine reported on March 8.
Fisker will update its "VIP customer service insurance", including free battery replacement for affected Karma owners in Anaheim, California
The US-based company said in a statement today.
The program will also provide customers in North America with a 10-month and 10,000-mile warranty extended to 60 months and 60,000 miles.
A123 is a shareholder of Fisker.
The automaker recalled 239 Karmas in December to repair a hose card in the A123 battery pack, potentially causing a coolant leak, which the company said could cause a fire.
Vieau said today that the reason for the defect described today is a calibration error in one of the four welding machines in the Michigan plant, resulting in the misplacement of components in some batteries.
This defect could lead to electrical short-circuit, leading to premature battery failure or performance degradation, and reduce battery life, he said.
While the total battery rate for faulty machine welding is a "small fraction" of A123 products produced at the Michigan plant, vieau says the possibility of modules or packages containing defects is "very high ", because the number of units entering them.
"We feel that almost all the products we produce in this factory are effectively contaminated with this particular defect," he said . ".
A123 received $249.
Doe received a 1 million grant from a project starting in February 2009 that supports the construction of the United StatesS.
A factory that manufactures batteries for hybrid and electric vehicles.
The company also applied for loans under the Department of Energy's plan to support manufacturing expansion.
In its annual report submitted in March 12, A123 estimated that it may be allowed to borrow up to $0. 233 billion from the project.
A123 also used $8.
According to the document, 3 million of Michigan's $10 million grant was used to support its plant expansion in livornia and Romulus, Michigan.
Fisk said this month that it has set up a team of more than 50 engineers to solve Karma's quality problems.
Fisker said in a statement today that the organization traced the reason why the car owned by the consumer was reported to have been shut down was the A123 battery pack.
The carmaker said both companies had set up a group to "look for the real root cause ".
The battery maker said in November that Fisk reduced A123's packaging orders in the fourth quarter of last year to balance parts inventory. 4 statement. A123’s full-
The annual loss expanded to $257.
7 million, or $2.
$152 per share last year.
6 million, or $1.
According to a statement of 2010, March 8 was 46 years.
Vieau said that the cylindrical battery made by A123 in China, used by Bayerische Motoren Werke AG and other customers, is not affected by defects.
A123 also provides batteries for GM. and Daimler AG.