Wheego running low on cash; LiFe production may be stalled

First Wheego LiFe Delivery – Click above for high-res image

Back on Earth Day, Wheego delivered its first electric-only, $32,995 LiFe to Asma and Kevin Henry of Atlanta, GA. But, in order to continue manufacturing the highway-capable electric microcar, the Atlanta-based startup needs cash now, says Mike McQuary, chief executive officer of Wheego. McQuary told Automotive News (sub. req.) that:
My constraint is primarily capital. We'll be living hand-to-mouth as we try to get the first cars built. The next 200 will creep out as we raise money.
Wheego has enlisted the help of The Westbury Group, a venture capital firm located in Westport, CT, to raise $15 million in funds to buy parts needed to manufacture the LiFe. McQuary says that Wheego's previous capital-raising efforts were stymied because the LiFe had not yet received final approval from National Highway Transportation Safety Administration ( NHTSA). That approval came in March.

Wheego's facility in Ontario, CA was supposed to crank out 200 LiFes per month in January, February and March of 2011 before ramping up to a rate that allows for the production of 60,000 vehicles a year. But, as McQuary told AN, "the question right now is how quickly we can raise money to buy parts."

[Source: Automotive News – sub. req.]

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