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Battery company bankruptcy prompts political criticism

Johnson Controls logo
Johnson Controls logo

DETROIT (WKZO) -- Tuesday's announcement that battery manufacturer A123 Systems will file for bankruptcy is prompting criticism from Republicans.  The Massachusetts based company that has workers in three Michigan locations will sell off its auto based assets to Johnson Controls for 125-million dollars.

The company has lost one billion dollars since 2001 despite  governmental support. That included a 249-million dollar federal grant in 2009.

Raising the GOP's ire is the fact that A123 is being allowed to bail out under the same set of rules that the General Motors and Chrysler were allowed, meaning they can sell off their good assets and write off the bad.

As part of the filing, A123 still has 120 million dollars of the federal grant money.