This video is part of our "Motley Fool Conversations" series, in which industrials editor/analyst Brendan Byrnes and technology and media editor/analyst Andrew Tonner discuss topics across the investing world.
In today's edition, Brendan and Andrew discuss A123 Systems, which has been struggling lately. The company announced it will be replacing the battery packs and modules that it supplies to customers after the battery caused the $107,000 Fisker Karma to shut down completely in a Consumer Reports test. Replacing the batteries will cost the company about $55 million, a significant number for a company that only carries $187 million in cash on its balance sheet, and the company could have trouble securing funding for larger-scale operations in the future. A123 hopes that its military battery and tie-ups with automotive heavyweights such as GM and BMW can help drive the company forward.
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