The world of electric vehicle brands is not going through its best moment, as we have been seeing in recent months. After the bankruptcy of firms in the sector such as Cake or Arc Motorcycles, it is now Gogoro Inc. that is in the eye of the hurricane, according to information detailed by some Taiwanese media. And although the root problem would not be the company’s financing itself, a recent internal scandal would have caused the company’s shares to fall to historic lows.
Apparently, Gogoro was accused of collecting different subsidies from the local government without complying with the regulations established to access said funds. The theory says that Gogoro Inc. vehicles (or those of any other brand that accesses this type of aid in the country) must be manufactured in Taiwan. But this is not all, since each and every one of its components must also be domestically manufactured.
As a result of this issue, different sources of information emerged stating that some of the Gogoro models used Chinese-made elements. This fact, as explained by Ride Apart, literally caused the confidence of Gogoro investors to drop, to the point that its shares were devalued by 92%, going from being worth $14.02 to just $1.05. dollars.
The scandal at Gogoro Inc. has already claimed its first labor victims
All of this comes after it was recently learned that Castrol has just invested $50 million in the company over the next few years. Horace Lukefounder and CEO of Gogoro Inc., commented that: “Gogoro Inc.’s certified battery replacement platform and smart electric two-wheelers have proven that cities can be transformed when they have access to a portable, smart, sustainable and convenient energy source. “This investment from Castrol is a testament to this success and allows us to expand even faster.”
Luke was precisely the first person to be affected by this anomalous situation, despite the fact that “The Industrial Development Administration of Taiwan’s Ministry of Economic Affairs stated that there was insufficient evidence to conclude that Gogoro had violated any domestic production regulations.” In fact, in a statement issued by the company itself they state that:
“Gogoro Inc. conducted internal investigations into allegations in recent media reports that the Company had incorporated imported components into some of its vehicles… The Company has reported irregularities in the supply chain to local authorities.” and is cooperating fully with local authorities in their investigations, while continuing its internal investigations.”
And concludes that: “As internal and external investigations are still ongoing, the Company cannot predict the ultimate outcome of such investigations. In an effort to demonstrate the Company’s resolve to fully cooperate with local authorities, Mr. Horace Luke resigned from his positions as Chief Executive Officer (the “CEO”), Chairman of the Board and Director of the Company, effective 13 September 2024.” We will be attentive to new information that clarifies Gogoro’s new situation.
