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Amp Buying Workhorse: $5m

March 7, 2013 in Companies, Electric Drive, EVs by Rich Piellisch  |  No Comments

Amp Trucks to Be First with Full Factory Alt Fuel Range

Amp Holding, parent of Amp Electric Vehicles in Ohio, is purchasing Navistar’s Workhorse assets through a new Amp Trucks subsidiary – and says it will be the first to offer a full line of factory alternative fuel vehicles. “If it’s alternatively powered we’ll make it,” says Amp founder and CEO Steve Burns. (this March 4 item re-posted on March 7)

Amp Trucks will recommence Workhorse production at Union City, Ind. as demand warrants – with a decided emphasis on battery electrics. 'The delivery truck itself can be re-invented right here," says Amp CEO Steve Burns.

Amp Trucks will recommence Workhorse production at Union City, Ind. as demand warrants – with a decided emphasis on battery electrics. ‘The delivery truck itself can be re-invented right here,” says Amp CEO Steve Burns.

“The purchase price to be paid by Amp Trucks is $2,750,000 in cash and the delivery of a Secured Debenture in the principal amount of $2,250,000,” states a Thursday 8-K filing by Amp Holding  (OTCBB and OTCQB:AMPD).

“If someone’s thinking of non-traditional power,” Burns told F&F Monday, “we want it to be Workhorse, from a factory point of view.” The definitive agreement, for a price Burns says will be disclosed later in the week, covers the Workhorse brand, logo, intellectual property, patents, assembly plant assembly plant in Union City, Ind. – and a network of some 440 Workhorse dealers.

The deal is expected to close by March 13.

Amp Trucks will maintain the Workhorse name. “We want to be known as a horse of a different color – green,” Burns says.

‘The Main Thrust Is Electric’

The Union City plant closed down in October, and will re-open according to demand. “The orders will drive everything,” Burns says. Amp will initially concentrate on battery electric vehicles, but will also offer gasoline trucks, and will pick up propane and compressed natural gas when customers ask for it.

“The main thrust is electric,” Burns says.

“With this acquisition,” the company said Monday, “Amp will be positioned to be the first truck OEM in the United States to offer a range of alternative fuel vehicles produced in an automated assembly plant.

“By offering an all-electric Workhorse chassis along with gasoline-powered, and alternative-fuel powered models, Amp will become a premier OEM capable of building alternative fuel vehicles for the commercial market.”

All-Electric, All In-House

Burns notes that the chief Workhorse competitor in the walk-in van market, Freightliner Custom Chassis Corp, offers electric vehicles with drivelines installed by Electric Vehicles International in Stockton. Amp will do its own factory installations.

Workhorse walk-in

Workhorse walk-in

Dealer training will be relatively easy, Burns says, as Amp has designed its driveline for repowers, which means it is effectively in kit form already. Amp is using Remy motors and (F&F, February 2) and large format prismatic lithium iron phosphate battery cells primarily from China Aviation. Amp builds its own battery packs using a commercially available BMS (battery management system).

Quick Payback

“We can pay back in four to five years and then it’s gravy for another 16,” Burns says – or gravy in as little as two years in states with strong EV incentives, which will be his first target markets. The payback is fast because the walk-in van is a gas guzzler. “These things weigh 20,000 pounds and they go through the air like a brick,” Burns says.

“Our acquisition of the Workhorse assets will enable us to continue producing the premium-quality chassis that Workhorse is known for while giving us the perfect platform for our battery-electric power-train technology,” he says in the Amp acquisition announcement. “It makes good strategic sense for us and we expect to be well positioned to meet the ever increasing demands of the market.”

“The delivery truck itself can be re-invented right here,” Burns told F&F.

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Source: Amp Holding with Fleets & Fuels follow-up

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