Advanced Vehicle Systems Inc. (Chattanooga, TN) announced that it is closing its doors after 11 years. AVS filed for bankruptcy protection in April, but the costs to maintain the company became too great. AVS had 100 employees. Many were let go earlier this year.
The City of Chattanooga's bus system, CARTA, is dependent on AVS for its hybrid buses; the closing could create trouble down the road. According to CARTA's contract with AVS, they were supposed to receive 11 hybrid buses. They only received six and the company will break even on the deal. However, where AVS is leaving a hole, CARTA hopes another local group will step in and fill the void.
AVS CFO Kevin Dew stated, "We are out of time and out of money. It is extremely unfortunate for the employees, unfortunate for Chattanooga. This was a potential benchmark for the city."
