Azure Dynamics Announces Restructuring
OAK PARK, Michigan, January 15, 2009: Azure Dynamics Corporation, a leading developer of hybrid electric and electric powertrains for commercial vehicles, today announced a restructuring and comprehensive cost reduction plan designed to address the realities of today's economy and marketplace while meeting the demand for tomorrow's most energy efficient commercial vehicles.
The Azure plan includes an approximate 25% reduction in its current workforce along with expected reductions in all discretionary expenses and a focus on actions to offset recent component cost increases. In addition the Company plans to further rationalize its product development efforts to focus on existing products and is actively working with its customers on potential new programs that involve sharing of development costs. Azure is also taking steps to enable the Company to access low cost U.S. and Canadian government loans supporting development of more fuel efficient vehicles.
"Our restructuring recognizes the realities of today's economy and marketplace. However, we believe these steps will also allow us to deliver on our promise of tomorrow," said Scott Harrison, Azure's chief executive officer. "We continue to maximize our Balance(TM) Hybrid Electric technology and now offer a shuttle bus variant in addition to the delivery truck application. We are currently addressing the telecom and utility markets with our LEEP Lift product and we expect to continue to aggressively explore opportunities in the electric vehicle sector. Although difficult, we believe this restructuring better positions Azure to continue its focus on 'driving a world of difference."
Earlier this week, Azure announced a five year supply agreement with Johnson Controls-Saft that will provide Azure with advanced lithium-ion hybrid technology battery packs for use in its commercial vehicles. The agreement will provide predictable deliveries of the packs thus eliminating previous supply concerns and enabling Azure to consistently deliver significant fuel savings and environmental benefits to its customers.