WIXOM—Spruce Power Holding Corp. (NYSE: SPRU) has announced final plans to exit its legacy business in fleet electric and hybrid vehicle powertrain development to concentrate on solar energy operations.
In the deal, Spruce will cease operations of its hybrid and drivetrain-related business lines. Spruce now has an agreement for Novi-based Shyft Group USA Inc. (Nasdaq: SHYF) to take over a pilot development agreement with the Department of Defense related to vehicle hybridization. Spruce will retain rights to potential future royalties from the program. Shyft will also receive technical equipment and leased space in Wixom under the agreement.
Shyft also announced that it had sold battery inventory and its hybrid technology to Thailand-based RMA Group, an auto supplier.
In a news release, Spruce officials said the deals will be complete by Jan. 1 and “should significantly reduce future operating cash use. Additionally, Spruce believes that the previously disclosed warranty reserve is sufficient to meet probable claims covering those vehicles currently under warranty.”
“These actions transform our business into a pure-play provider of clean energy solutions to residences and small businesses,” Spruce CEO Eric Tech said in the release. “We are excited that our former colleagues will have a new opportunity with Shyft to bring EV solutions to specialty commercial vehicle manufacturing, assembly, and upfit. We wish them well in the transition.”
Going forward, Spruce’s business will be to own and operate distributed solar energy assets, providing subscription-based services that make it easy for homeowners and small businesses to own and maintain rooftop solar power generation and battery power storage. The company currently has more than 51,000 subscribers across the United States. For additional information, visit www.sprucepower.com.