Smith Electric Vehicles Corp. has suspended its production and assembly operations because the business was not profitable, but the company plans to resume its global operations in the middle of the summer and keep its headquarters in Kansas City.
“We strategically did shut down the (Kansas City) facility because we didn’t see value in continuing to build a small number of vehicles at the price point we were,” CEO Bryan Hansel said. “We needed to transition both our manufacturing and assembly process as well as our supply chain to the next level so we could be ready to go to volume and make money doing it.”
Hansel said the company is building vehicles at a loss and has yet to make a profit. He said this is natural for a young business, and Smith Electric was clear to its clients, suppliers and investors that a temporary stoppage was part of the plan.