Hyzon Motors, a US-based hydrogen fuel cell truck manufacturer, is closing its European truck factory in Winschoten, Netherlands, less than a year after acquiring full ownership of its European operations. The decision comes amid a strategic shift towards a third-party assembly model, mirroring its approach in the US.
The company stated, “We have been evaluating our global operations and transitioning our international regions to the third-party assembly model operated in the US. As a result of these strategic initiatives, we are shifting our European operations and will share updates when available.”
This move follows a turbulent year for Hyzon, marked by governance and compliance issues that threatened its Nasdaq listing. An investigation revealed revenue recognition issues in China and Europe, leading to a complete overhaul of its senior management team and board.
In its Q2 results, Hyzon announced plans to simplify its global supply chain, reduce expenses, and improve cycle times, including an exit from the Chinese commercial truck market.
In September 2023, Hyzon agreed to pay a $25 million penalty to the US Securities and Exchange Commission (SEC) to resolve allegations of misrepresenting the status of its business dealings, creating a false impression of imminent sales transactions.
Former CEO and Director Craig Knight and former Managing Director of Hyzon Europe Max Holthausen were named in the SEC’s complaint. Both consented to final judgments, subject to court approval. Additionally, Knight and former CFO Mark Gordon voluntarily returned incentive compensation totaling $252,000 and $122,500, respectively.
The closure of the European truck factory signals a strategic realignment for Hyzon, emphasizing third-party assembly partnerships and a focus on core competencies in fuel cell technology development and integration. The company aims to streamline operations and enhance efficiency while navigating a dynamic and evolving hydrogen mobility landscape.