Bankruptcy filing stalls electric car manufacturer

Posted:

Written by Ron Steele, Anchor - bio | email

WEBSTER CITY (KWWL) -

The plan was to bring some 300 new jobs to Webster City with a project to build electric cars at Auto Manufacturing Systems, Incorporated.

Instead, Auto Manufacturing Systems has filed for Chapter 7 Bankruptcy and Webster City is out 790-thousand dollars the city loaned the company for the ambitious project.

Owner Joe Fleming filed bankruptcy in Iowa's Southern District U.S. Bankruptcy Court in Des Moines. Chapter 7 usually means a liquidation of assets and not a reorganization of the company. Fleming's bankruptcy petition listed four businesses, including A.M.S.

With numerous skilled workers in the area, Webster City was banking on Auto Manufacturing Systems to fill a huge void left by closure of the Electrolux plant in 2011. The company was to build battery-powered cars with help from an economic development loan from Webster City.

The City will try to recover proceeds from the loan made to Auto Manufacturing Systems, Inc.

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Bankruptcy filing stalls electric car manufacturer - KWWL

Bankruptcy filing stalls electric car manufacturer

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