Auto/Economy
10:31 am
Mon March 26, 2012

Michigan battery maker to spend $55 million replacing defective parts

A123 Systems Inc. has announced it will replace battery modules and packs that could contain defective parts made at the company's Livonia manufacturing facility.

In a press release, the company said they began making replacement modules and packs and expect to ship them to affected customers this week.

The company said the defective parts are not a safety concern.

From their press release:

"Recently, A123 has discovered that some prismatic cells made in our Livonia facility may contain a defect which can result in premature failure of a battery pack or module that includes a defective cell. We have isolated the root cause of the defective cells and we are confident that we have pinpointed the source of the defect and corrected it..." said David Vieau, CEO of A123 Systems. 

MLive.com reports:

A123 most recently made headlines for its nearly $260 million loss in 2011 and a Fisker Karma, which the company supplies the battery for, dying during testing by Consumer Reports.

Company officials say prismatic cells made at another A123 facility are not impacted, and "the cylindrical cells we make at our facilities in China for a number of other transportation programs, as well as the majority of our grid energy storage systems and commercial applications, are also not affected by this defect."

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