By Chris Wack
Spruce Power Holding Corp. said it is exiting its drivetrain business and taking other steps to become a pure-play clean energy solutions business.
The Wixom, Mich., solar energy company said it will cease operations of its hybrid and drivetrain-related business lines, including all product development and commercial activities.
The Shyft Group USA, a wholly owned subsidiary of The Shyft Group Inc., will assume completion of a pilot development agreement with the Department of Defense related to vehicle hybridization, Spruce Power said. Spruce will retain rights to potential future royalties from the program.
Shyft will buy certain technical equipment and assume a lease in Wixom related to the initiative. Shyft is also expected to offer employment to engineers and others employed by Spruce.
Spruce has also sold certain battery inventory and its legacy hybrid technology to RMA Group, an automotive and equipment supplier in Southeast Asia.
The company believes that these actions will be completed by Jan. 1 and should significantly reduce future operating cash use.
Write to Chris Wack at chris.wack@wsj.com
