August 19, 2008

The Vehicle Production Group LLC, (VPG), a Michigan-based company, has completed a $160 million round of equity financing to develop a purpose-built taxi cab to run on gasoline or emissions-reducing compressed natural gas (CNG). The wheelchair-accessible vehicle, know as the Standard Taxi, will be available in both gasoline- and CNG-powered models and will feature an integrated ramp for wheelchair users plus a high roof and low floor, enabling the vehicle to seat four and accommodate a wheelchair, scooter or baby stroller. The vehicle will have a front-engine, rear wheel drive architecture that includes a body-on-frame structure. VPG expects to launch production in early 2010 and plans to produce 10,000 to 15,000 vehicles in the first year of production.

The financing was led by merchant bank and private equity firm Perseus LLC and includes a $10 million investment from Clean Energy Fuels and an additional $10 million investment from Clean Energy's co-founder, T. Boone Pickens. The funding will be used for vehicle engineering, production tooling, vehicle testing and validation. VPG is working with General Motors through Powertrain Integration L.L.C. Marketing, technical, and infrastructure logistical support for the CNG model will be provided by Clean Energy.