Hyliion to Exit Class 8 Electric Truck Powertrain Business
Hyliion's Hypertruck ERX powertrain was installed on this Peterbilt sleeper cab on display at the Management Conference & Exhibition in October. (John Sommers II for Transport Topics)
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Hyliion Holdings Corp. plans to exit the Class 8 electric powertrain business, the company said in a statement Nov. 8, less than a month after beginning a strategic review of its options for the unit.
Instead, the Austin, Texas-based original equipment manufacturer will focus its attention on the less costly commercialization of its fuel-agnostic Karno stationary generator.
Hyliion plans to retain its powertrain technology, which received California Air Resources Board certification in September. At least one analyst thought Hyliion might sell the technology when the strategic review was announced.
The powertrain business will be wound down by the end of first quarter of 2024, according to a filing with the U.S. Securities and Exchange Commission. As a result, 175 Hyliion staff will lose their jobs. Those staff represent 67% of the company workforce, according to the filing.
The company’s Class 8 product offerings were an electric powertrain installed in a Peterbilt Model 579 sleeper cab called the Hypertruck ERX. It also offered a retrofit Class 8 electric hybrid powertrain.
Healy
Hypertruck ERX trucks were on display at American Trucking Associations’ Management Conference & Exhibition in Austin in October.
The company at that time was also promising future sleeper trucks based on the Karno generator technology, plus a fuel cell electric vehicle in collaboration with Rochester, N.Y.-based Hyzon Motors. That company plans to launch serial production of its own fuel cell electric Class 8 truck in the second half of 2024.
HYZON PLANS TEST: Customers can sample next-generation FCEV
When the review was announced, Hyliion said it intended to complete the assembly of an initial group of vehicles, but would pause securing orders for Hypertruck ERX-equipped trucks and new powertrain development work.
The company began the review as a result of lower-than-expected industry adoption of electrified commercial vehicles, increased component costs, evolving regulatory requirements, and uncertainty about the ability to raise additional needed capital for ongoing investment in the business, it said.
After the review was completed, Hyliion decided discontinuing the powertrain business and focusing on the Karno generator was its best option.
Hyliion will focus its attention on the less costly commercialization of its fuel-agnostic Karno stationary generator. (Hyliion)
“The decision around our powertrain business was very difficult, but we believe it is a necessary step to safeguard our financial stability, especially given the current economic climate,” Hyliion founder and CEO Thomas Healy said in the statement.
“Our focus on Karno aligns with the growing demand for electricity. With commercial deliveries planned for the upcoming year, the Karno generator offers a more capital-efficient path to market,” added Healy.
Ahead a result of the strategic shift, Hyliion is planning a research and development and low-volume production facility near Cincinnati. Hyliion expects the first revenue-generating deployments of the generator to occur in late 2024, and is in discussions with inaugural customers, it said.
Hyliion shares slumped after the strategic review was announced and fell again Nov. 9 after this latest announcement, which was made after the market closed Nov. 8. On Nov. 9, the share price closed at 54 cents, down 8.27%.
Also on Nov. 8, Hyliion said the New York Stock Exchange notified it on Nov. 2 its stock was at risk of being delisted because its share price had traded below $1 for 30 consecutive days.
A delisting can hamper attempts to raise funding, but in announcing the exit from the powertrain business Hyliion stressed its cash-rich position and how much money would be saved by focusing exclusively on the stationary generator.
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