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:

Comments

Login or Create new account to add a comment!

Recommended

More positive news has been pouring in before the year ends. For those who have been waiting to hear the latest word on Toyota 86, we have some great news....
by - December 10, 2016
Hyundai is making the green vehicle race more competitive by offering three powertrain types -- pure electric (EV), hybrid (EV plus combustion engine) and plug-in hybrid (PHEV) – in one...
by - December 9, 2016
Although specs for the new Renault Megane had already surfaced several weeks ago, we didn’t know that the company has cooked up something new. Aside from the 200hp gasoline, Renault‘s...
by - December 9, 2016
For the first time in fifty-eight years, Infiniti registers its first US-Spec Q60 Coupe in Cuba. American products have not been allowed entry into Cuba for six decades. But it...
by - December 9, 2016
Chevrolet has already given out the pricing for some of its 2018 Equinox models. Not only will the new Equinox be available in both the US and Canada, it is...
by - December 9, 2016
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries