A123 looking for new auto business following Chryslers EV pull out

Lithium-ion battery maker A123 Systems is increasing its focus on the automotive market, creating a new business unit led by a former auto parts executive.

A123 said on Friday it has created two business units, one called the automotive solutions group which will focus on the transportation market, and another that will work on cell design and development.

The auto group will work with automakers and major suppliers to provide battery systems for hybrid, plug-in hybrid and electric vehicle technology, the company said.

The two new units will operate alongside A123's Energy Solutions Group, which develops battery systems for the electric grid and consumer product markets.

A123, founded by scientists linked to the Massachusetts Institute of Technology (MIT), is working with German luxury carmaker BMW and France-based Renault. It also has relationships with suppliers like Delphi and Magna Steyr.