Gogoro, a Taiwanese company that makes electric scooters and replaces batteries, said in a regulatory filing that its CEO and chairman, Horace Luke, has resigned following allegations of subsidy fraud.
Gogoro is accused of using Chinese-made parts in its electric scooters to cut manufacturing costs, despite reporting it was using domestically produced parts to qualify for government subsidies. Gogoro said in the filing that an internal investigation found “certain irregularities” in its supply chain that led to the “erroneous incorporation of certain imported parts into some of our vehicles.”
Gogoro said in the filing that Luke had resigned to demonstrate the company's commitment to fully cooperate with local authorities as the investigation continues.
Since going public in 2022, Gogoro has seen its financial position weaken due to exchange rates and its expansion into new markets such as the Philippines and Indonesia. In the second quarter, Gogoro posted a loss of $20.1 million, widening from a deficit of $5.6 million in the second quarter of 2023.