Monday, October 28, 2013

AM General Acquires Vehicle Production Group’s Assets

AM General has reached an agreement with the United States Department of Energy (DOE) to purchase the DOE’s secured loan to The Vehicle Production Group. VPG, which closed its doors in March of this year, was the Miami-based company that originally developed and manufactured the acclaimed MV-1 (featured on our Dec. 2012 cover), the only American-built vehicle specifically designed from the ground up to meet or exceed the needs of wheelchair passengers and the guidelines of the Americans with Disabilities Act. Previously, AM General acted solely as the vehicle assembler for VPG. Following this transaction, AM General will own and operate the reborn MV-1 business.

The agreement will result in a new company called Mobility Ventures, which will acquire the assets of VPG. AM General will control VPG’s MV-1 business unit, and will resume the assembly of the MV-1 vehicles at its world-class, 675,000 square-foot Commercial Assembly Plant in Mishawaka, IN, which is fully tooled for the MV-1 and ready to resume vehicle assembly. AM General has also begun planning with the more than 100 suppliers of the MV-1 to support the accelerated restart of production and sales. It is anticipated that resumption of MV-1 production and sales will stimulate the creation of hundreds of new jobs.

While this transaction is being finalized, AM General will continue to provide service, parts and technical support to the network of more than 80 MV-1 dealers and distributors throughout the U.S. and Canada. For more information, visit www.amgeneral.com.

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