BlockByBlock
In Brief
Posted: 10:22 AM PDT · September 16, 2024
Image Credits: Gogoro
Rebecca Bellan
Gogoro, the Taiwanese electric scooter manufacturer and battery-swapping giant, has announced that its CEO and chairman Horace Luke has stepped down amid allegations of subsidy fraud. The news comes as the company faces an ongoing investigation into its use of Chinese parts in e-scooters, despite reporting that it used locally made components to qualify for government subsidies.
Gogoro’s Subsidy Fraud Allegations
According to a regulatory filing, Gogoro allegedly used imported Chinese parts to reduce manufacturing costs. The company claims that internal investigations identified "certain irregularities" in the supply chain, which led to the incorporation of certain imported components in some vehicles. Despite this, Gogoro reported to authorities that it had used locally made parts to qualify for government subsidies.
Horace Luke’s Resignation
In an effort to demonstrate the company’s commitment to cooperating with local authorities, Horace Luke resigned as CEO and chairman. In a filing, Gogoro stated that Luke’s resignation was intended to show its resolve in fully cooperating with the investigation. The company emphasized its dedication to transparency and accountability.
Gogoro’s Financial Struggles
Since going public in 2022, Gogoro has faced significant financial challenges due to currency exchange rates and its expansion into new markets such as the Philippines and Indonesia. In the second quarter of this year, the company recorded a loss of $20.1 million, up from a shortfall of $5.6 million in Q2 2023.
Investigation Continues
The ongoing investigation into Gogoro’s subsidy fraud allegations has raised concerns about the company’s governance and financial practices. As the situation unfolds, stakeholders will be closely monitoring developments to determine the impact on the company’s reputation and future prospects.
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- AI researcher François Chollet founds new AI lab focused on AGI [3]
Topics
- Battery Swapping: Gogoro’s innovative battery-swapping technology has been a key differentiator in the e-scooter market.
- Electric Scooters: The company’s electric scooters have gained popularity worldwide, offering an environmentally friendly alternative to traditional transportation methods.
- Gogoro: As one of the leading e-scooter manufacturers, Gogoro’s financial struggles and regulatory issues will be closely watched by investors and industry observers.
- Horace Luke: The former CEO and chairman’s resignation raises questions about his role in the company’s governance and accountability.
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[1] Reusable rocket startup Stoke raises massive round: $260M
[2] Tesla to split $100M award for electric truck charging corridor in Illinois
[3] AI researcher François Chollet founds new AI lab focused on AGI
