Green Automotive Company Restructures Its Electric Vehicle Business

published: 2014-09-03 18:01 | editor: | category: News

Green Automotive Company (GAC) plans to 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 center, 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 move is part of GAC’s plan to focus on its major growth opportunities led by Newport Coachworks. The re-organiation 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.

Ian Hobday, CEO of GAC, commented: “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.”

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