OAK PARK, Michigan, January 15 /PRNewswire/ --
- Actions Designed to Rationalize Product Development, Reduce Costs
Azure Dynamics Corporation (TSX: AZD, LSE: ADC OTCQX: AZDDF) - (Azure or the Company), 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.
For more information about Azure Dynamics and its family of hybrid electric and electric commercial vehicles, please visit http://www.azuredynamics.com.
About Azure Dynamics
Azure Dynamics Corporation (TSX: AZD) (LSE: ADC) (OTCQX: AZDDF) is a world leader in the development and production of hybrid electric and electric components and powertrain systems for commercial vehicles. Azure is strategically targeting the commercial delivery vehicle and shuttle bus markets and is currently working internationally with various partners and customers. The Company is committed to providing customers and partners with innovative, cost-efficient, and environmentally friendly energy management solutions.
For more information, please visit http://www.azuredynamics.com.
The TSX and LSE Exchanges do not accept responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements. More particularly, this press release contains statements concerning Azure's business development strategy, projected commercial revenues and product deliveries.
The forward-looking statements are based on certain key expectations and assumptions made by Azure, including expectations and assumptions concerning achievement of current timetables for development programs, target market acceptance of Azure's products, current and new product performance, availability and cost of labour and expertise, and evolving markets for power for transportation vehicles. Although Azure believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because Azure can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, the risks associated with Azure's early stage of development, lack of product revenues and history of losses, requirements for additional financing, uncertainty as to commercial viability, uncertainty as to product development and commercialization milestones being met, uncertainty as to the market for Azure's products and unproven acceptance of Azure's technology, competition for capital, product market and personnel, uncertainty as to target markets, dependence upon third parties, changes in environmental laws or policies, uncertainty as to patent and proprietary rights, availability of management and key personnel, and acquisition integration risk. These risks are set out in more detail in Azure's annual information form which can be accessed at http://www.sedar.com.
The forward-looking statements contained in this press release are made as of the date hereof and Azure undertakes no obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
For further information: Ryan Carr, Chief Financial Officer, +1-248-298-2403, Email: firstname.lastname@example.org; Pat Liebler, Liebler!MacDonald, +1-313-832-4376, Email: email@example.com