By Adriano Marchese
Westport Fuel Systems said it plans to divest certain subsidiaries to help alleviate a tighter cash situation that is becoming more pressing.
The supplier of alternative fuel systems and components said Monday that it estimates it won't have enough cash to fund its operations through the year, which it says raises substantial doubt about Westport's ability to continue as a going concern.
Alongside cost reductions, the company plans to sell certain subsidiaries in Europe and Argentina that comprise substantially all of its light-duty business. In particular, it has entered into a sale agreement to sell its business in Italy, Westport Fuel Systems Italia, for up to $79.6 million, including potential earnouts.
Chief Executive Dan Sceli said the decision is expected to focus the company on providing solutions to decarbonize mobility applications like long-haul and heavy-duty trucking.
"Looking ahead, we are focused on scaling our alternative fuel-based solutions, including advancements in compressed natural gas, renewable natural gas, and hydrogen systems, while navigating a rapidly evolving transportation landscape," Sceli said.
Westport expects to close the sale in the second quarter of this year.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
March 31, 2025 06:46 ET (10:46 GMT)
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