'Intelligent' EV Maker Agrees to Buy AM General Plant

Posted: Updated:
(Image of the commercial assembly plant courtesy of AM General) (Image of the commercial assembly plant courtesy of AM General)
MISHAWAKA -

A Chinese-owned, Silicon Valley-headquartered company has announced an agreement to acquire the Mishawaka commercial assembly plant of South Bend-based AM General LLC. SF Motors says it plans to produce "environmentally-friendly, intelligent" electronic vehicles in St. Joseph County. The company is a subsidiary of Chongqing Sokon Industry Group and says it intends to retain the facility's full current work force and invest $30 million into upgrades.

The plant, which employs around 430 in Mishawaka, is operated independently of AM General's military assembly plant in the area. MAP operations will not be affected. SF Motors says it is not releasing financial details of the acquisition, but says the only current customer contract at the CAP is slated to expire at year's end, which would result in the shutdown of a production line. AM General's website says its commercial operations have assembled more than 1.5 million vehicles in more than 50 years, including the Hummer H1 and H2, Ford Transit Connect Electric, MV-1 paratransit vehicles and Mercedes-Benz R-Class.

SF Motors Chief Executive Officer John Zhang "this transaction represents a unique opportunity to grow our intelligent electric vehicle business through the addition of an existing production facility and a skilled work force. We are excited to work closely with our new Indiana-based team to produce SF Motors' next-generation electric vehicle in South Bend, Indiana, and we look forward to becoming a part of the local community and a strong contributor to Indiana's economic growth."

SF Motors recently set up its North American headquarters in the Silicon Valley and a research and development operation in Ann Arbor, Michigan. The company has ambitious plans in the U.S., which include establishing an EV clean mobility brand based on the West Coast that will source its parts primarily in the U.S. and create a supply chain in the country.

AM General CEO Andy Hove calls SF Motors "the right long-term owner to support the CAP, as well as the South Bend community and the State of Indiana." He adds "this transaction puts the CAP on solid ground to keep the assembly lines running, providing our tremendously talented and dedicated employees new opportunities as part of SF Motors and its plans to produce next-generation electric vehicles. South Bend has been AM General's home for nearly 30 years, and following the sale of the CAP, we will maintain our deep ties to the region as we continue to operate our military business, which is profitable, strong, and growing."

The acquisition is expected to close in the fourth quarter. It is awaiting industry approvals, as well as clearance from regulators in the Unites States and China.

  • Perspectives

    • Is Your Enterprise Ready For Digital Transformation?

      We are living in a historic era with accelerating market and technology disruptions that impact our lives and rapidly change how we do business. Cloud computing, advanced analytics, and digital technologies have the potential to transform how every company interacts with its customer. So, how do businesses keep up and (better yet) stay ahead? Enter the digital CIO. A new breed of CIO is emerging to lead companies through technology changes happening at record pace.

    More

Subscribe

Name:
Company Name:
Email:
Confirm Email:
HTML
INside Edge
Morning Briefing
BigWigs & New Gigs
Life Sciences Indiana
Indiana Connections
INPower
Subscribe
Unsubscribe

Events



  • Most Popular Stories

    • Big Military Diesel Engine Contract Goes to Cummins

      Columbus-based Cummins Inc. has secured a more than quarter-billion dollar U.S. Department of Defense contract. The deal involves new and remanufactured engines for the U.S. Army. The DOD says locations of where the work will be performed will be determined with each order. The contract is for procurement of new commercial, remanufactured and remanufactured conversion V903 Cummins series 600 and 675 horsepower diesel engines. Cummins bills itself as...

    • 'Best Places' in Indiana Reaches Record

      The Indiana Chamber of Commerce has released the 2018 list of Best Places to Work in Indiana. A record 125 companies are being honored this year and more than 50 are first-timers or returning after a year or more off the list. Employers in over two dozen communities are represented and the chamber will unveil the rankings of the Best Places honorees during a May 3 awards dinner at the Indiana Convention Center in downtown Indianapolis.

    • IDOE Names 'Four Star Schools'

      The Indiana Department of Education has released its list of Four Star Schools for the 2016-2017 academic year. The designation, which has been awarded for the past 30 years, aims to recognize great schools throughout the state. 

    • Cummins to Design Combat Engines That Elude the Enemy

      The monstrous, larger-than-life military tanks of tomorrow could be powered by Hoosier ingenuity. A recent $47 million defense contract delivers marching orders for Columbus-based Cummins Inc.: develop the next-generation engine to power U.S. combat vehicles, and it must be stronger, but smaller, and elusive to enemies’ efforts to spot it. 

    • On-Air

      Find out when and where you can watch and listen to our reports.