New Life for a Troubled Natural Gas Vehicle OEM

Specialized vehicle maker AM General is buying Vehicle Production Group LLC (VPG), the former OEM of the MV-1 handicap-accessible compressed natural gas (CNG) vehicle.

VPG had ceased production and laid off its workforce in early May. AM General will assume VPG's $50 million federal loan through the U.S. Department of Energy's Advanced Technology Vehicle Manufacturing program, which will result in the company owning and operating VPG.

According to AM General, a new company called Mobility Ventures LLC will acquire VPG's assets, and production, sales and product development of the MV-1 will resume in less than two months. Production will be carried out at AM General's plant in Mishawaka, Ind.

While VPG was in business, AM General served as its sole vehicle assembler. And now, while the transaction is being finalized, AM General will be providing parts and technical support to the network of more than 80 MV-1 dealers and distributors.

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