AM General has acquired Vehicle Production Group, the former manufacturer of the MV-1, after purchasing the rights to a loan from the U.S. Department of Energy for $3 million in an auction. The deal creates a new company called Mobility Ventures LLC, which will take over VPG’s assets.
VPG, which made the only American-built vehicle designed for people with disabilities, shuttered operations last May after defaulting on a $50 million loan from the DOE’s Advanced Technology Vehicles Manufacturing program. The production of the MV-1 is expected to resume this fall. Vehicle assembly will continue at AM General’s plant in Mishawaka, Ind.