Other units also struggled during the quarter, with weakness in power adapters leading accessory sales down 6%, while sluggish battery sales had the power platform category up just 1%.

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Despite the slow sales of battery-powered cars, the head-start they have over fuel-cell cars gives them a definitive advantage in terms of price.

CNN: Hydrogen fuel-cell cars look to overtake electric autos

Tim Urquhart of IHS Global Insight, a research firm, reckons that purely battery-powered cars will command only about 0.6% of world sales in 2020, with plug-in hybrids accounting for a further 0.7%.

ECONOMIST: Renault's electric-car gamble

Preliminary battery life testing shows all-day productivity with a single battery charge1, an advantage for road warriors and always on-the-go sales executives.

ENGADGET: blogger-avatar

With the Chevrolet Volt, Chevrolet accounts for more than 50 percent of all plug-in electric vehicle sales in the United States and Spark EV builds on Chevrolet's proven electric motor and battery development programs.

ENGADGET: Chevy details 2014 Spark EV: under $25,000, 0-60 in 8 seconds and a 20-minute fast charge

The sales to Wanxiang and Navitas will not generate enough money for A123 to pay its creditors, the battery maker said.

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The battery and car manufacturer, backed by United States billionaire Warren Buffett, plans to cut the workforce at the sales unit to 800 from 2, 600, according to a post from an unidentified laid-off employee on the Weibo.com microblogging site.

FORBES: Significant Layoffs Coming At Buffett's China Auto Co BYD