Houston-based Spruce Power, formerly known as XL Fleet and a distributor of solar energy assets across the U.S., today announced completion of its strategic transformation to a clean energy solutions business and will cease operations of its hybrid and drivetrain-related business lines, including all product development and commercial activities.
The Shyft Group USA Inc., a wholly owned subsidiary of The Shyft Group Inc. based in Novi, will assume completion of a pilot development agreement with the Department of Defense related to vehicle hybridization. Spruce will retain rights to potential future royalties from the program. Terms of the transaction were not disclosed.
“These actions transform our business into a pure-play provider of clean energy solutions to residences and small businesses,” says Eric Tech, CEO of Spruce Power. “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.”
Related to the development opportunity, Shyft will acquire from XL Fleet certain technical equipment and assume a lease in Wixom related to the initiative. Shyft is also expected to offer jobs to engineers and others currently employed by XL Fleet.
In a separate transaction, Spruce has sold certain battery inventory and its legacy hybrid technology to RMA Group, an automotive and equipment supplier in Southeast Asia.
The company anticipates that these actions will be completed by Jan. 1, 2023 and should reduce future operating cash use. Additionally, Spruce officials state that the previously disclosed warranty reserve is sufficient to meet probable claims covering those vehicles currently under warranty.
“With these steps, our business transformation is complete, and we enter 2023 in a strong position, able to unlock the value of Spruce Power as a streamlined and refocused company,” Tech says.
