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A123 Systems Case

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Strategic Audit – A123 Systems, Inc I. Current Situation A. Current Performance The transportation battery division of A123 Systems, Inc was purchased by Wanziang America Corporation, a division of China’s Wanziang Group. The government and military portions and contracts of A123 Systems, Inc was purchased separately by Navitas Systems, LLC. The vehicle battery division now operates under the name A123 Systems, LLC and is no longer traded publicly. The government and military components of the former A123 Systems now operates as Navitas Advanced Solutions Group. It was delisted from the SEC as of December 2012. The last financial data available through SEC filings is 3rd quarter 2012 and the last fiscal year annual report available publicly is for the year ended December 31, 2011. This Strategic Audit will be using the data available as of the last year of public reporting – 2011. For the year ended December 31, 2011, A123 Systems reported a $258,000,000 net loss and $296,365,000 in net worth resulting in negative ROI of 87%. B. Strategic Posture …show more content…

The corporation intended to use the license of MIT’s patent in nanotechnology, along with expertise from MIT’s nanotechnology development project to develop battery and battery systems that would give consumer product manufacturers a competitive advantage. A123 Systems also stated in its proxy statement that it would stay on the forefront of innovation of new battery and battery systems as well as reduce costs through innovation of the manufacturing process of its

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