Chinese firm approved to buy U.S. electric car battery company
Share Now on:
After months of deliberation by the U.S., China’s largest auto parts maker has won government approval to buy A123 Systems, an American manufacturer of electric car batteries. The result might be a huge loss of potential jobs in America.
For Chinese auto parts maker Wanxiang, the timing of this deal was perfect. The U.S. government had just given A123 $129 million to develop top-of-the line electric car batteries — and that’s when the Chinese company swooped in.
“In the auto industry, you build it where you sell it,” says Asia auto analyst Michael Dunne. “Demand for the short term, at least, looks to be bigger in China than the United States. That looks like production for A123 may very well shift over to China.”
Along with production will probably go American jobs, all lost because China’s government is offering attractive incentives to people who want to buy electric vehicles. The central government gives electric car buyers a check worth $9,500. Last week, amidst a public outcry over hazardous air pollution, the city of Beijing matched that sum resulting in a whopping $19,000 subsidy for people who buy electric cars.
We’re here to help you navigate this changed world and economy.
Our mission at Marketplace is to raise the economic intelligence of the country. It’s a tough task, but it’s never been more important.
In the past year, we’ve seen record unemployment, stimulus bills, and reddit users influencing the stock market. Marketplace helps you understand it all, will fact-based, approachable, and unbiased reporting.
Generous support from listeners and readers is what powers our nonprofit news—and your donation today will help provide this essential service. For just $5/month, you can sustain independent journalism that keeps you and thousands of others informed.