When I first heard the rumor (I live in Chgo area) called friends in Detroit, NYC & Boston & got confirmations in several different ways. Price to be between 5 & 6 dollars a share. Complicated because of heavy Govt. involvement in both cos.
For accting purposes, cost above book value will be applied to patents so there will be little "good Will" costs. Further complications arise from MIT's
know how (in the form of patent applications) on how to reduce size & cost of batteries while increasing charge density & life.
Feeling is that all cars worldwide in the future will have batteries just like carburetors (which are being changed to use compressed natural gas) so that these specially patented batteries will be standard equipment just like existing batteries are.
Many bureaucratic Govt. committees & regs involved with both cos. severely complicate all aspects of a complicated deal. GM heavily involved in future battery design which caused the explosion.
IPO & early investors will never get even. While I'm always glad to take a profit, am somewhat disappointed because I thought this would be a $20
stock & be a growth co. for years like McDonalds, Walmart & Microsoft.
Inflection point in history IMO because cost of automobile transportation will be going down.
Active Hybrid uses cylindrical cells, not the prismatics which had the issue with the welding machine. Nothing wrong with the cylindricals - which the grid trailers also have been using. The next move is (was?) to use prismatics in Grid trailers for higher density.
yeah, we already said the BMW cells aren't the bad ones. Wouldn't say everything is "fine" tho. Active Hybrid will fizzle, A123 will lose more money and the pattern will continue. Nothing new there.
i like bumping this thread tho, cause it has all the pumpers in one place and is a nice showcase of delusion.
Kinda like this:
3 years later the projections seem absurd. Major OEM using 32113 in 2009.. high volume production! ha, only 3 years late and counting. Looks good in a powerpoint, not so much in reality.
I only mention this because hindsight gives a pretty good indication of the months ahead. As we watch A123 going thru it's last painful gasps, punctuated by severe spasms of pain for shareholders. I'm just wondering at what point all the Pollyannas will finally look back and say, yeah, it was doomed all along.
BMW Active does NOT use the 20Ah Livonia "faulty" cells. it uses cylindrical cells which are fine. BMW contract is "fine". Fisker is also saying that the Atlantic model will use A123 cells (big whoop for Fisker who is themselves a really wild risk).
Their business plan didn't account for a lot of things: profit, customers, shareholders, etc. CEO perks got covered tho.
Livonia has 500MW of capacity, of which around 100 is used? What good is redundant production susceptible to the same negligent errors?
They have supply agreements for pre-purchased materials. A123 is in no hurry to replace it's own $15M in defective surplus inventory. Sales are below the worst predictions.
"Supply contraint" is bull.
Active 5 uses 32113 cells, no prob there. Not that BMW sales will help A123 recover. BMW has already joined with Toyota for their next battery.
Active Hybrid 5 is a scam anyway.
"But how is any of this really better than the 4,145-pound, diesel-powered 535d with its 308 hp and 465 lb-ft of torque? The 535d averages equal or better real world mileage per gallon, emits a bit less CO2 per mile and, by our math, costs what would be around $5,000 less. Is this simply the finest efficient alternative for markets that by and large reject diesel?"
ICEs will keep pace with hybrids, now that there is some reason to do so.
Livonia has 500MW of capacity, about 100 of which was being used. They have supply agreements for pre-purchased materials. Expected sales have been lower than any prediction. A123 has no immediate requirement to replace their own defective $15M in defective inventory.
"supply contraints" is bull.
Active 5 hybrid uses 32113 cells , I believe. Its sales won't be affected, but also won't help A123 recover. BMW actually joined with competitor Toyota to develop their next battery.