Next Autoworks to restructure operations after failing to secure $320M loan

Article by Christian A., on December 22, 2011

After failing to secure a $320 million government loan in November, fledgling vehicle manufacturer Next Autoworks will reduce its number of employees, shut down its San Diego headquarters and consolidate into its suburban Detroit technical center, Kathleen Ligocki, CEO of Next Autoworks, discloses.

The automaker had sought financing from the a U.S. Department of Energy loan program in order to start manufacturing a low-cost, efficient small vehicle at a facility in Monroe, La., previously owned by General Motors. In a company statement published in November, the automaker revealed that it withdrew its application after knowing that it would not be approved due to "political and credit-risk concerns" that involve startup companies.

The government agency has previously denied an earlier loan application from Next Autoworks in March 2010. With the decline of its loan application, the automaker found it necessary to restructure its operations and evaluate strategic alternatives, Ligocki told Automotive News in a statement.

The automaker had successfully secured funds earlier from major players in the venture capital industry such as Google Ventures, T. Boone Pickens and Kleiner Perkins Caufield & Byers. Next Autoworks is the second startup vehicle manufacturer to publicize that its business plans were impeded by a lack of funding. On December 2, Carlsbad, Calif.-based Aptera Motors disclosed that it would liquidate after it was unable to obtain private-sector funding to manufacture a midsized electric sedan. It had also sought a Department of Energy loan. [source: Autonews]

Topics: united states

If you liked the article, share on:

Comments

Recommended

McLaren has already shown some interest in electrifying their models. And initially, we thought that they will just use hybrid systems to use across their current lineup. Nevertheless, we have...
by - August 19, 2017
Fifty years after its glorious victory at the 24 Hours of Le Mans, Ford launches the 2018 Ford GT ’67 Heritage Edition at the 2017 Monterey Car Week. The red...
by - August 18, 2017
Hyundai has recently unveiled an unnamed pre-production model of its new fuel cell SUV. We don’t know what to call this model just yet, but sources say that this model...
by - August 18, 2017
This weekend at the 2017 Pebble Beach Concours d’Elegance, the BMW Z4 Concept will make its first public appearance. The good news is that we will finally have a real...
by - August 18, 2017
While Honda’s new 2018 HR-V will be rolling out at the dealerships with just a few updates, the company is certainly not giving up its spot as the best-selling vehicle...
by - August 18, 2017
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