GreenTech MyCar

GreenTech Automotive, builder of the small, $15,500 MyCar NEV, has been in the headlines recently, and not for good reasons. The US Securities and Exchange Commission, after questions from Senator Charles Grassley (R-IA), is looking into the company for potential abuse of the foreign investor visa program. The company's troubled history is affecting Terry McAuliffe's current run for governor of Virginia. He helped start GreenTech Automotive but left late last year to focus on politics.

To try and clarify some of the bad news, the CEO of GreenTech Automotive (GTA), Charles Wang, just issued a press release that basically says, "all is well, nothing to see here." Addressing the connection to McAuliffe, Wang wrote that:

While a high-profile political figure is a GTA shareholder, the company is not political and has no direct interest in politics. As earnest business people, we do not believe that politicizing the challenges a startup business faces or twisting facts is the American way of doing business.

As for the SEC issue, he said:

One of the ways in which GTA has raised funding is through a federally established immigration investment program known as EB-5. This program has existed since 1990 when the first President Bush signed it into law. We are confident that we have strictly adhered to all statutory and regulatory requirements, and have always had open communications with our industry's regulators.

There's even some interesting news about future products, like "a four-door sedan using our advanced electric drivetrain" that GreenTech will develop with "a major Asian automotive OEM." We assume that's JAC (Jianghuai Automobile Co.), GTA's partner for the MyCar. GreenTech's Mississippi facility – also the site of some controversy – is now in phase two of the construction and should be "a state-of-the-art assembly facility" in six months.
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GreenTech Automotive CEO Charles Wang Updates on Milestones and Next Steps

MCLEAN, Va., Aug. 12, 2013 /PRNewswire/ -- Four years ago, a few entrepreneurs founded GreenTech Automotive Inc., a startup company in Mississippi that has steadily evolved since launch. Our aim is to develop energy-efficient cars that are so inexpensive that the average American could afford to buy them. While we have big dreams – and have not been shy about sharing them – we understood that Rome was not built in a day. We have been proceeding in a very pragmatic, cost-efficient manner.

All startups, especially those in a highly competitive, capital-intensive industry like electric vehicles, face unanticipated challenges, and we have certainly had our share. We have worked hard to overcome those challenges. In the past four years, we have completely re-designed and re-engineered a small electric vehicle, "MyCar"; we have earned the respect of a major Asian automotive OEM, which has entered into an agreement with us to jointly develop a four-door sedan using our advanced electric drivetrain; we established a fully functional assembly line in a 375,000-square-foot facility in Mississippi; and we have finished phase I construction of a permanent manufacturing home and proceeded to the phase II construction that will, we hope within the next six months, deliver a state-of-the-art assembly facility. Most importantly, we have attracted, trained and retained a dedicated workforce in Mississippi and sponsored value-adding education and training for them.

We are proud that we have achieved all of these accomplishments without any federal subsidies or funding. We are grateful that the State of Mississippi has provided us a standard incentive package to help us establish our manufacturing base in Tunica.

One of the ways in which GTA has raised funding is through a federally established immigration investment program known as EB-5. This program has existed since 1990 when the first President Bush signed it into law. We are confident that we have strictly adhered to all statutory and regulatory requirements, and have always had open communications with our industry's regulators.

While a high-profile political figure is a GTA shareholder, the company is not political and has no direct interest in politics. As earnest business people, we do not believe that politicizing the challenges a startup business faces or twisting facts is the American way of doing business. We are glad to share our story with neutral, unbiased members of the media, but we will also defend the company, its employees and its investors against malicious attacks based on fabrications and willful mischaracterizations.

We have so far created more than 80 manufacturing jobs in Mississippi and we expect that number will increase as we get closer to being ready to manufacture our products in our new assembly facility in Tunica, Mississippi. We are just months away from revealing our most sustainable cars ever as we gear up to launch the MyCar14 and the new electric sedan.

The hardworking men and women at GreenTech Automotive are proud of what we have achieved in four years, and we are committed to creating affordable, green, electric vehicles. We are confident that the judgment of the market we seek to serve will prove our strategy and our timing as prudent and effective.

About GreenTech Automotive:

GreenTech Automotive (GTA) is a U.S.-based automotive manufacturer dedicated to developing and producing environmentally friendly, energy-efficient vehicles. GTA's core values encompass green technology, affordability and U.S. job creation. GTA's first vehicle is MyCar, a two-seat electric vehicle with a range of up to 115 miles. GTA operates a pilot manufacturing facility in Horn Lake, Mississippi, and is developing a manufacturing facility with annual production capacity of 30,000 vehicles in Tunica, Mississippi. For more information, visit www.greentechforamerica.com