VL Automotive and GreenTech Automotive form a merger

Article by Christian Andrei, on May 8, 2014

Sport car startup VL Automotive and electric vehicle GreenTech Automotive have merged. VL has been purchasing Karmas since Fisker went bankrupt, using the vehicle as a base for its 638 hp V8-powered Destino car. Founder Bob Lutz has already partnered with American unit of Wanxiang Group that has acquired Fisker’s remaining assets this year.

With the merger, VL can have access to an assembly site that GreenTech has been building in Tunica, Miss. Lutz’s partner Gilbert Villarreal remarked that the merger will allow GreenTech to ramp up Destino production while boosting its EV division.

The merger will see Villarreal becoming COO of GreenTech, has developed a two-seat electric “neighborhood vehicle” called the MyCar. GreenTech was co-founded by Virginia Gov. Terry McAuliffe in 2009 during his hiatus from national politics.

McAuliffe exited from GreenTech ahead of his 2013 gubernatorial bid. In 2013, the Washington Post reported that the United States Securities and Exchange Commission is probing GreenTech over its use of the EB-5 visa program.

The EB-5 visa program allows an investor to receive a green card for every $500,000 invested in an economically distressed area. Both VL and GreenTech are linked to companies in China.

GreenTech reached an agreement in April 2013 with the JAC Motors to develop an electric sedan that will be built in the US. While the merger suggests that GreenTech’s Tunica site could build the Destino, the newly merged company has indicated signaled that it still plans to sell the MyCar.

"Leveraging more than a half-century of combined experience in the automotive industry by its founders, VL Automotive has produced a world class luxury sedan in record time. We see great synergies between the two companies and we are extremely excited for the merger to be complete. I believe that this merger will enable WMGTA to take a leap forward in engineering capability, product development and manufacturing standards, as well as production capacity," said Charles Wang, WMGTA President and CEO. [source: Green Autoblog]

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