Hyliion is exiting the powertrain business for Class 8 electric trucks

Hyliion is exiting the powertrain business for Class 8 electric trucks

Hylion Hypertrac ERX

Hyliion’s Hypertruck ERX powertrain was installed on a Peterbilt sleeper cab on display at the Management Conference and Expo in October. (John Somers II for transportation topics)

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Hyliion Holdings Corp. plans to exit the Class 8 electric motor business, the company said in a statement issued Nov. 8, less than a month after it began a strategic review of its options for the unit.

Instead, the Austin, Texas-based OEM will focus its attention on lower-cost marketing of its fuel-less Carnot stationary generator.

Hyliion plans to retain its proprietary 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 the first quarter of 2024, according to a filing with the U.S. Securities and Exchange Commission. As a result, 175 Hyliion employees will lose their jobs. These employees represent 67% of the company’s workforce, according to the filing.

The company’s Series 8 product offering was a Peterbilt Model 579 sleeper cab-mounted electric powertrain called the Hypertruck ERX. It also introduced the Class 8 hybrid electric powertrain.

Thomas Healy

Hailey

The Hypertruck ERX trucks were on display at the American Trucking Associations Management Conference & Expo in Austin in October.

The company at the time was also promising future sleeper trucks based on Carnot generator technology, as well as a fuel cell electric vehicle in collaboration with Rochester, New York-based Hyzon Motors. This company plans to launch serial production of its Class 8 fuel cell electric truck in the second half of 2024.

Testing Hyzon’s plans: Customers can experience the next generation FCEV

When the review was announced, Hyliion said it intended to complete assembly of an initial batch of vehicles, but would temporarily stop securing orders for Hypertruck ERX-equipped trucks and new powertrain development work.

The company said it initiated the review as a result of lower-than-expected industry adoption of electric commercial vehicles, increasing component costs, evolving regulatory requirements, and uncertainty about the ability to raise the additional capital needed for continued investment in the business.

After completing the review, Hyliion decided to stop working in the powertrain business and focusing on the Carnot generator was the best option for them.

Carnot generator

Hyliion will focus its attention on lower cost commercialization of its fuel-less Karno stationary generator. (asparagus)

“The decision regarding our powertrain business was an extremely difficult one, but we believe it is a necessary step to protect our financial stability, especially in the current economic climate,” Thomas Healey, founder and CEO of Hyliion, said in the statement.

“Our focus on Carnot is in line with the growing demand for electricity. With commercial deliveries planned for next year, the Carnot generator provides a more efficient path for capital to market.

Prior to the outcome of the strategic shift, Hyliion plans to establish a low-volume R&D and production facility near Cincinnati. Hyliion said it expects the first revenue-generating deployments of the generator to occur in late 2024, and is in discussions with inaugural customers.

Hyliion shares fell after the strategic review was announced and fell again on November 9 following this latest announcement, which was made after the market closed on November 8. On November 9, the stock price closed at 54 cents, down 8.27%.

Also on November 8, Hyliion said the New York Stock Exchange notified it on November 2 that its shares were at risk of delisting because its stock price had traded below $1 for 30 consecutive days.

A delisting could derail fundraising attempts, but in announcing its exit from the powertrain business, Hyliion stressed its cash-rich position and how much money would be saved by focusing exclusively on stationary generators.

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(Tags for translation)Helion

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