Cash-strapped Vehicle Production Group now up for sale

Article by Anita Panait, on May 10, 2013

Vehicle Production Group (VPG) has suspended its operations and is currently up for sale, according to former chief executive John Walsh. VPG, which builds MV-1 vans for the disabled, terminated around 100 workers and shut down its offices in February. In an interview with Automotive News, Walsh said that the two parties in the "automotive space" have expressed interest in acquiring VPG, adding that one of them is a current partner that "has a lot to do with building the car." Walsh’s statement may refer to AM General, which builds specialized military and commercial vehicles like the Humvee.

AM General was contracted to build the MV-1 in Mishawaka, Indiana. Walsh told Automotive News that once VPG's assets were frozen after falling below the threshold set by the United States government, shutting down operations “was the best move.” According to him, it was the right thing to do for the employees, since they continued to work without being paid. The U.S. Department of Energy granted VPG a $50-million loan in 2010 under the Advanced Technology Vehicles Manufacturing loan program. The van maker was able to hire some of the most senior talents in the U.S. auto industry after its creation in 2006, including CEOs Dave Schembri, from Mitsubishi and Smart USA, and Mark Hogan from General Motors.

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016