Electric bus maker Proterra filed for Chapter 11 bankruptcy on Monday, despite receiving millions in federal aid and the administration's backing.
CEO Gareth Joyce cited “various market and macroeconomic headwinds that have impacted our ability to efficiently scale.”
"The foundation we have built has set the stage for decarbonization across the commercial vehicle industry as a whole, and we recognize the great potential in all of our product offerings to enable this important transformation," Joyce said in a statement. "This is why we are taking action to separate each product line through the Chapter 11 reorganization process to maximize their independent potential."
The EV firm, which sold more than 1,300 electric buses to public transit systems in the US and Canada, was valued at $1.6 billion when Biden, 80, took office in January 2021 — but closed with a market value of $362 million, according to Reuters.
In 2021, the president pledged more than $10 billion from his $1.9 trillion bipartisan infrastructure plan toward zero-emission transit and school bus programs.
He has promoted Proterra several times since taking office, and once virtually toured a facility.
“Right now we’re running way behind China, but you guys are getting us in the game,” Biden said in April 2021. “We’re going to end up owning the future, I think, if we keep doing what we’re doing.” (New York Post)
In addition to Proterra receiving Biden's support, the president appointed Joyce to the White House Export Council, praising his "long and distinguished career that spans the automotive, aviation, and consulting industries."
"Through his leadership, Joyce is growing Proterra’s EV battery manufacturing footprint in the United States and accelerating the transition of transit and other commercial vehicles to zero emission solutions," the White House statement said.
Energy Secretary Jennifer Granholm also held millions in the company's stock and sat on its board, prompting ethics concerns.
Granholm raked in $1.6 million in profit after selling hundreds of thousands of shares in May 2021, months after she had first pledged to do so. She served on Proterra’s board from February 2017 until just before her Senate confirmation hearing in January 2021. (New York Post)
Proterra's bankruptcy filing comes months after the company cut jobs and restructured hundreds of millions in outstanding debt.
Join the conversation as a VIP Member