AMP Electric Vehicles Inc. to Buy Workhorse from Navistar RV

[DriVer]

AMP Electric Vehicles Inc. Enters Into Agreement to Acquire Assets of Workhorse® Brand From Navistar International Affiliate

Positioned to Become First Truck OEM to Offer Array of Alternative-Fuel Vehicles

Cincinnati, Ohio, March 4, 2013

March 4, 2013 -- AMP Holding Inc. (OTCBB and OTCQB: AMPD), through a newly formed subsidiary, Amp Trucks, Inc., has entered into a definitive agreement to acquire the Workhorse® brand, logo, IP, patents, and assembly plant from Workhorse Custom Chassis, LLC, a wholly owned affiliate of Navistar International Corporation (NYSE: NAV). The parties expect to close the acquisition on or about March 13, 2013.

AMP plans to produce Step-Vans and other vehicle types using the former Workhorse Custom Chassis plant in Union City, Indiana. A specific timetable to re-open the Workhorse® plant will be announced as the transition occurs and order backlogs are established.

With this acquisition AMP will be positioned to be the first truck OEM in the United States to offer a range of alternative fuel vehicles produced in an automated assembly plant. By offering an all-electric Workhorse® chassis along with gasoline-powered, and alternative-fuel powered models, AMP will become a premier OEM capable of building alternative fuel vehicles for the commercial market. AMP’s vehicles will be sold and supported through the existing Workhorse® network of 440 dealers.

Steve Burns, CEO of AMP said, “Our acquisition of the Workhorse assets will enable us to continue producing the premium-quality chassis that Workhorse is known for while giving us the perfect platform for our battery-electric power-train technology. It makes good strategic sense for us and we expect to be well positioned to meet the ever increasing demands of the market.”

About AMP Holding Inc.
AMP Holding is the parent company of Amp Electric Vehicles, a manufacturer of electric drive systems for medium-duty class 3-6 commercial truck platforms. AMP Electric Vehicles, Inc. was founded in 2007 by entrepreneurs who have created several hi-tech companies. The AMP team is comprised of top automotive industry veterans and business executives. AMP has been focused on the electrification of fleet vehicles, including medium-duty class 3-6 trucks and vans.
Over the past several years, the company’s vehicle electrification technology has provided new solutions to America’s energy demands.

For additional information visit http://www.ampelectricvehicles.com

Forward-Looking Statements
Certain statements contained in this press release may constitute “forward-looking statements”. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors as disclosed in our filings with the Securities and Exchange Commission located at their website (U.S. Securities and Exchange Commission | Homepage). In addition to these factors, actual future performance, outcomes, and results may differ materially because of more general factors including (without limitation) general industry and market conditions and growth rates, economic conditions, and governmental and public policy changes. The forward-looking statements included in this press release represent the Company’s views as of the date of this press release and these views could change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of the press release.

SOURCE: AMP Holding Inc.
For Additional Information please contact:
Martin Rucidlo: martin.rucidlo@ampelectricvehicles.com
Daniel Zito: dan.zito@ampelectricvehicles.com

[Scarab0088]

This is a total change in product format, but at the least is good news for Navistar, to have found a buyer for the assets.

Would this make a new Workhorse chassis like a locomotive or cruise ship...?
The gennie (with battery storage) makes juice -> electric power is sent to the main mover motor as needed by throttle position -> Chassis goes down the road.

The benefits are: No transmission (weight or bulk), engine always operates at high efficiency RPM, battery storage bank allows "E"conomy at low speeds. Options can include multiple in-wheel motors to allow improved steering control and regenerative braking at each wheel.

While you're probably not gonna see a plug-in electric motorhome, I like the idea and have always wondered why it's not been done before.

[vincee]

I wonder if this is another off shoot of the currant powers to be in Washington with alternative energy? What are the details of this acquisition? I wonder if our limited and precious tax dollars are being used as they were to promote the Chevy Volt, Solandra and a whole host of failed alternative energy companies that survived on the government hand outs only. How about the Tesla electric sports cars that received hundreds of millions of U.S. tax payer money to produce a car that starts at $150K and isn't even made here. I know this is a good thing for those that are big Workhorse supporters and owners as far as perhaps a new parts supply, however, this is not the old GM produced Workhorse you all so loved.

[RustyJC]

Well, from the company's own mouth in the format of a press release:

AMP Holding Inc. (OTCBB and OTCQB: AMPD), a company engaged in US Government supported green energy initiatives for emission-free electric vehicles......

SOURCE

Rusty

[CampDaven]

I would not expect battery storage as the weight would be way too much. Not a hybrid
The principles of a train engine may work. Wish I would live to see it.

[DriVer]

I think that you guys are missing the larger message here. Rather than throw Solindra darts at this possible sale one has just to look a little bit deeper before assuming that this is some type of government solar/green energy pit.

With the ever-rising diesel prices, powering heavy-duty commercial vehicles to be all-electric is a solution for today. Navistar leads the way in this effort, and road-ready, electric fleet vehicles are a great fit for heavy duty urban delivery vehicles.

As of August 2012, "With the delivery of its first all-electric 1,000 cubic foot heavy-duty step van, AMP takes its first step in its development deal with Navistar for large commercial EVs built for the urban delivery market."

What we have seen is that Navistar shut down the Union City Workhorse plant. What the press release has just stated is that AMP is going to re-open the former Workhorse plant in Union City, restore jobs and build EVs. These vehicles are Made in the USA - that has got to be a good thing? OR did I miss the boat?

If I were in the EV business at this point, an association with Navistar is way better than a hand-out from the government. "Green Energy Initiatives" is a program that numerous manufacturers have adopted like GE, Westinghouse, Honeywell, etc., etc., etc. I could be wrong but please help me see why if AMP adopts GEI that the next step is a Solindra (type) buy-out with a resulting massive government financial loss.

[RustyJC]

In the words of my dear old Dad, I don't personally see how AMP Holdings Inc. can buy an old setting hen. AMP Holdings Financials.

Rusty

[DriVer]

Originally Posted by vincee

I know this is a good thing for those that are big Workhorse supporters and owners as far as perhaps a new parts supply, however, this is not the old GM produced Workhorse you all so loved.

vincee, I would just comment on your remarks by sharing that "GM never produced one Workhorse badged vehicle."

Uptime Parts appears to be well funded and staffed by Navistar backed resources and there doesn't seem to be a major problem getting Workhorse parts that I am aware of. There have been issues with the suppliers of the parts since several have gone out of business but we have see press where Navistar is committed toward assuring that parts will be available even if they have to find new suppliers.

[DriVer]

Originally Posted by RustyJC

In the words of my dear old Dad, I don't personally see how AMP Holdings Inc. can buy an old setting hen. AMP Holdings Financials.

Rusty, The way I read it is; "A subsidiary of Navistar." Now bring in those assets. It's obvious to me that there is a synergy there.

How could AMP afford to buy all the assets, the plant and hire all those workers back if they were not being afforded "An offer that you can't refuse" from Navistar (since they are the ones that are selling.)

If you were a NAV bean counter, would you allow AMP to buy?

So .. getting back to the "rub" I don't see this as a possible government buy-out.

[vincee]

DriVer, I don,t pretend to be a Workhorse expert as I've only been enjoying the lifestyle 7years. First rig, an Allegro was a Ford chassis as is my second rig, Georgetown a Ford. However, if my memory serves me correctly, the original WH sold either a portion or all to GM to afford GM a great platform for their 8.iL engine and a foot hold in the industry without having to develope their own. Yes it would be great if the factory opens and jobs are created here. But, review the financials provided by Rusty and you can only ask how can they take over Workhorse without a Solindra type sweet deal IMHO only.

[DriVer]

I have not seen where it's contingent on AMP to receive millions in financing from the government in order to make the deal possible. I do see it as a lateral transfer of business from corporate to company of a shut down division.

Navistar recognizes that the Union City manufacturing facility will be profitable or I believe they would not spin off the deal.

Do I expect that we will see a resumption of RV chassis manufacturing? It would be more likely or palatable for an OEM to buy from independent AMP rather than an attached to the hip company that's on equal footing with Monaco. Winnebago will not buy a (perceived) Monaco chassis.

According to recent press Ford is just about keeping up with demand and has committed to more volume. What's obvious there is that there exist opportunity to do business and fill the void.

[vincee]

DriVer, Agreed. Hooray for the RV industry if there is more competition in the gas chassis field and perhaps someone will start looking at CNG as an alternative fuel for RV's.

[DriVer]

Originally Posted by vincee

DriVer, Agreed. Hooray for the RV industry if there is more competition in the gas chassis field and perhaps someone will start looking at CNG as an alternative fuel for RV's.

As far back as 2010 at the RVIA, Ford was promoting that they could power the V10 with LNG by hardening the valve faces and seats.

According to recent press, Navistar is buying Cummins engines that will be fitted with LNG fuel systems for a line of specialty commercial trucks.

What was in the past only whispered will I expect make an initial small impact on the commercial vehicle business and possibly the RV chassis business if there is a market for it.

Commercial LNG vehicles are, I understand, local hauls and pretty much on par with EVs in strategy.

[edgray]

Originally Posted by vincee

DriVer, I don,t pretend to be a Workhorse expert........ However, if my memory serves me correctly, the original WH sold either a portion or all to GM to afford GM a great platform for their 8.iL engine and a foot hold in the industry without having to develope their own.......

Sorry, but your memory got it backwards Workhorse began RV chassis production in Union City, IN after buying the rights to Chevy's P32 chassis FROM GM. Workhorse became a customer, buying GM motors and Allison Trannys. After developing the W-series platform, Workhorse was bought by Navistar.