A123 Replacing $55M In Defective Product
A123 Systems, the Waltham battery maker with operations in Westborough and Hopkinton, is jumping to fix problems caused by defective prismatic cells.
The company said it is spending about $55 million to replace battery modules and packs that may contain defective cells produced at its plant in Livonia, Mich. It expects to spread the cost over the next several quarters.
A123 said the defective cells can cause premature battery failure, but are not believed to be a safety issue. It said cells made outside the Michigan plant, including those made in China for transportation purposes, are not affected.
The company said it's also taking action to improve its operations, including its recent hiring of a new chief operating officer, Ed Kopkowski, who has spent more than more than 25 years in global management and operation leadership positions in the manufacturing industry.
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