In today’s market, due to the recent economic downturn, this translates into
buyers having an increased bargaining power, and as a result, companies like
Black & Decker and Gillette are unable to fully pass on its costs to homebuyers.
This impacts A123 by having these companies then try to lower materials cost,
meaning they can use this as leverage to get lower prices from AONE. This
problem is further impacted by the stagnant homebuilding industry which is a
primary consumer of the power tools A123’s batteries power.