Green Automotive Company Restructures Its Electric Vehicle Business
September 02 2014 - 10:24AM
Business Wire
And realigns its operations to focus on its
Californian business
As part of the company’s plan to focus on its major growth
opportunities led by Newport Coachworks, Green Automotive Company
(OTCQB: GACR) announced today that it will sell the assets of its
GoinGreen and LEC2 businesses to former GoinGreen staff members,
led by Clive Southwell, former director of the UK business. At the
same time, it will transfer the majority of the knowledge in its
electric vehicle technology centre, known as Liberty E-Tech, to a
new facility to be opened in Riverside, California, where its main
manufacturing business is located. As a consequence, the company
will cease its electric vehicle retailing, engineering, development
and support operations in the UK. The re-organisation of the UK
business will take place as a Creditors Voluntary Liquidation under
the U.K.’s Insolvency Act of 1986, Section 98. As a result, all
liabilities in the companies will be eliminated, including an
outstanding tax payable of $622,697, outstanding trade payables of
$689,481 and outstanding lease payments of $40,000.
GAC’s goal is to make Newport Coachworks the focus of the
company’s efforts to create a successful and sustainable business
whose key priorities are: the production of high quality diesel,
gas and CNG shuttle buses; the development and launch of a
profitable and environmentally friendly range of electric shuttle
buses, and the development of EV technology catering to the
commercial vehicle sector. This will enable us to exploit the
tremendous opportunities that exist worldwide, as government
incentives spur growth in EV development to encourage penetration
within the overall light duty (LD) vehicle market. According to
MarketResearchReports.com, industrial and commercial electric
vehicles today represent 60% of the value of the electric vehicle
market. Indeed, this sector is set to grow 4.2 times in the next
decade.
(http://www.redorbit.com/news/technology/1113174464/industrial-and-commercial-hybrid-and-pure-electric-vehicles-20142024-forecast/)
Ian Hobday, CEO of GAC: “We are reorganizing our global
businesses to focus our support on Newport Coachworks, exiting
those operations which require too much funding or have little
short term opportunity for growth. Parallel with the creation of a
new R&D center in Riverside CA, we will also be expanding our
existing manufacturing facilities to cope with demand for our range
of shuttle buses. The reality is that, most of our electric vehicle
development is already taking place in California, one of the most
dynamic regions in that field with a highly skilled workforce and
reliable and innovative suppliers. GAC’s main focus in the near
future is to strengthen its Newport Coachworks operation – this is
where all our Know how and expertise has to be located. By bringing
together R&D and production, GAC will make some important cost
savings that should help our company to achieve its goal of
building a profitable business.”
About Green Automotive Company
visit www.thegreenautomotivecompany.com.
Forward Looking Statements - This release includes
forward-looking statements. For a copy of the Company’s full
statements regarding forward-looking statements, please click here
Safe Harbor Statement Green Automotive Company.
Green Automotive CompanyPublic RelationsPetra Beitl,
+447791601666petra.beitl@the-gac.com
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