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A123 in April received a two-year extension on its deadline to spend a $249.1 million grant from the federal government, originally received in 2009. The money was to be used for the construction of new lithium-ion battery manufacturing facilities in Michigan. A123's Livonia plant opened in 2010, and its Romulus plant opened last year. The company had $120 million left of the $249.1 million grant.
The hiring announcement comes after the company has hit financial problems. In March, A123 said it would spend about $55 million to replace defective battery packs in five battery packages that were assembled at its plant in Livonia.
In addition, financial losses have accelerated. In its 2011 earnings, A123's loss grew 69 percent to $257.7 million from the year earlier. And in April the company reported a first-quarter loss of $125 million -- a 133 percent increase from the $53.6 million loss during the same quarter in 2011.
