Chinese investment in US battery maker meets criticism

David Vieau, president and CEO of US auto-part maker A123 Systems (AONE.NASDAQ), countered criticism from congressional Republicans by saying that Chinese Wanxiang Group’s US$450 million investment in his company will save American jobs, Bloomberg reported. The deal would give Wanxiang Group an 80% stake in A123 Systems, which makes lithium-ion batteries. Florida Republican Cliff Stearns has criticized the investment, in part because A123 Systems received a US$249 million federal grant for US factory construction. “[The federal funds] can only be used for building factories in North America and the creation of jobs, and that’s what’s been done,” Vieau said. “This is a step toward financing the company so we can continue on that mission.” Following a recall of batteries for luxury carmaker Fisker, A123 has struggled financially, posting at least 12 consecutive quarterly losses.