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Jason Forcier, vice president and general manager of the A123 Automotive Systems Solutions Business Unit, said that the main reason for the decline in orders was the decline in Fisker's production of the hybrid model, Kama, which is the exclusive supplier of Kama lithium-ion batteries.
Ray Lane chairman Fiske said that before the company expected to produce 7,000 cars this year, but due to the delay of production failure of the wiring harness, so this year's production will be reduced by 1,500, next year's production will reach 15,000.
Forcier added that these employees are only temporarily dismissed and will return to their respective jobs four to six months later.
Since Fisker announced its production cuts, A123 reduced its sales for the current fiscal year from 210 million to 225 million U.S. dollars to 165 million to 180 million U.S. dollars.
A123’s Michigan plant currently has 21 ongoing or upcoming projects, including the BMW 5 Series High-Efficiency Hybrid Concept Vehicle and the GM Chevrolet Spark Electric Vehicle.
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As a result of the decline in lithium-ion battery orders, A123 Systems intends to temporarily dismiss 125 employees from its two Michigan plants.