Green Automotive Co. shedding businesses, focusing on shuttle bus subsidiary

Riverside, California – The Green Automotive Co. will sell the assets of its GoinGreen conversion business that transforms traditional vehicles into electric ones and LEC2 businesses, makers of electric vehicles such as the British G-Whiz, 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 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, a maker shuttle busses powered by natural gas or electricity, the focus of the company’s efforts to create a successful and sustainable business.

Newport will focus on the production of high quality diesel, gas, and compressed natural gas (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.

The company hopes to benefit from 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.

Ian Hobday, CEO of GAC, says, “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.”

Source: Green Automotive Co.