The Hudson Mobility product group announced Thursday that it had sold its remaining 1,094 vehicles and its fleet of trucks, trucks, buses and trailers to a new company.
The deal was approved by the board of directors at the company’s headquarters in Burlington, Vt., according to a statement released by the company.
“This transaction is a strategic one to provide a solid base of financing for Hudson Mobility and for our future operations,” Hudson Mobility CEO Andrew McLeod said in the statement.
“Hudson Mobility will continue to focus on building the best mobility solutions for our customers, while expanding our product portfolio with new vehicles and innovative technologies.”
The company said that it would invest $4.8 billion in the company over the next decade.
“We are thrilled to have reached this new chapter in our history and look forward to building upon the strong foundations we established with our initial investment and our strong financial position,” said Hudson Mobility Chairman and CEO Christopher J. Stoddard in the release.
Hudson Mobility had planned to continue its operations through the end of 2017, but a combination of economic downturns, rising insurance costs and the departure of former president and CEO David M. Czarnik have made the move difficult.
It announced in October that it was ending its partnership with Progressive Insurance.
“While the market has stabilized, we cannot say that the market conditions in the U.S. have been conducive to continued profitability,” Hudson CEO Andrew McClure said in a statement at the time.
“The market conditions are changing, and we are working with the insurance industry to find a way forward.
We expect that our new partner will be able to deliver an even better product and value proposition in the coming years.”