The electric car battery maker A123, which received a $249 stimulus grant from the federal government and then filed for bankruptcy, has been bought by a Chinese car parts maker.
Wanxiang Group bid about $257 million for the company, and the sale will require the approval of the U.S. Committee on Foreign Investment.
The company had been a flagship of President Barack Obama’s attempt to stimulate new environmentally friendly industries but ran into trouble due to slower than expected sales of electric cars, the Financial Times reported.
Its bankruptcy filing in October follows the filing of other companies backed by U.S. government grants or loan guarantees, including Solyndra, a manufacturer of solar modules.
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