UPDATE: The Industrial Development Administration (IDA, 產發署) clarified Gogoro's compliance with domestic production regulations on Oct. 1, citing insufficient evidence to conclude that Gogoro's VIVA motor controllers violated the Ministry of Economic Affairs' (MOEA, 經濟部) domestic production subsidy guidelines.
TAIPEI (Business Today/TVBS News) — Taiwan-based electric scooter giant Gogoro (睿能創意) faces accusations of using Chinese-made key components in two of its models while still applying for government subsidies. Furthermore, despite its celebrated listing on the U.S. stock market two years ago, its stock price has dropped by over 90%, and several top executives have recently left the company.
Gogoro, known for its innovative combination of smart scooters and a battery-swapping system, has successfully commercialized this concept in Taiwan. Over the past decade, it has become the leader in Taiwan's electric scooter market. In 2022, Gogoro went public in the U.S., attaining a valuation exceeding US$3.6 billion and joining the ranks of global unicorns. Under the guidance of Horace Luke (陸學森), Gogoro has consistently been a beacon of Taiwanese innovation.
Taipei City Receives Whistleblower Report Hinting at Potential Misconduct by Gogoro
It is difficult to fathom that Gogoro, a source of Taiwanese pride, is mired in allegations of exploiting regulatory loopholes. The company is accused of labeling power systems with Chinese-made circuit boards as entirely made in Taiwan, thus obtaining more than NT$600 million in government subsidies.
In November 2021, the Ministry of Justice's Investigation Bureau (調查局) Taipei Office received a whistleblower report, sparking whispers within the industry.
According to the whistleblower report, "Luke and others, in an effort to increase sales of the Gogoro VIVA electric scooter, knowingly claimed that the scooter met the subsidy criteria set by the MOEA and the Environmental Protection Administration (EPA, 行政院環境保護署), misleading consumers into believing that the scooter was eligible for government subsidies..." (Editor's Note: The agency was elevated to the Ministry of Environment (環境部) in 2023.)
The whistleblower report directly points out that "Gogoro has sold over 40,000 units of the Gogoro VIVA. Given the government subsidies of NT$10,000 to NT$20,000 per electric scooter, the company has fraudulently secured more than NT$600 million in subsidies." The "fraudulent" subsidies cited in the report pertain to violations of the MOEA’s Electric Motorcycle Industry Subsidy Implementation Directions (經濟部推動電動機車產業補助實施要點), hereafter referred to as the "directions."
As per Article 13, Clause 6 of the directions, "The motor assembly, stator and rotor (excluding permanent magnets), components and materials, and controller used in the application must be domestically produced." The report discloses that Gogoro began developing the entry-level model Gogoro VIVA in 2018. Due to ongoing difficulties in reducing costs, the company sought to lower the procurement price of the motor controller, a major component of the vehicle's overall cost.
Taking Risks to Cut Costs: 'Believing Taiwanese Don't Deserve Good Things'
Why is Gogoro under pressure to reduce costs? A former senior executive analyzed that Gogoro's first scooter received significant attention at the Consumer Electronics Show (CES, 美國消費電子展) in January 2015 but experienced a commercial failure. Priced at NT$128,000, the Gogoro 1 was expected to sell 50,000 units in its first year but ended up selling only 2,000 to 3,000 units. "Gogoro embodied Luke's vision, nearly depleting its funds, but sales were poor. The material cost alone for the first model was NT$160,000, excluding development costs, meaning each unit sold at a loss."
"We suggested he develop a cheaper model quickly. It took him around six months to accept the idea, and he worked hard to produce the second model, the Gogoro 2, which became an instant success," the former executive disclosed. From that point on, "He felt that Taiwanese people didn't deserve good things, only cost-effective items..." The former executive remembered that in early 2019, Ray Huang (黃瑞聖), the vice president of R&D, sent an email to the R&D team discussing the procurement of key components for the motor controller. "Ray knew, and he mentioned in the email that there were gray areas in the directions, clearly aware that the government regulations prohibited the use of Chinese-made components..."
Motor Controller Origin Controversy? Quanta Shanghai Production, Taiwan Assembly
The complaint alleges that since 2018, Gogoro has outsourced the production of motor controllers, which constitute roughly 20% of the electric scooter's cost, to Quanta Shanghai (廣達上海) factory. These controllers are then shipped back to Taiwan, where Gogoro hands them over to Easy Energy Technology Co., Ltd. (意力創電機科技) for assembly into a complete power system. The final product is then delivered to Gogoro for the full scooter assembly.
According to the complaint, "The transaction should have involved invoices and packing lists issued by Quanta's Shanghai office to Gogoro. Instead, these documents were issued by Quanta's Taiwan office, deliberately altering the transaction party from Quanta Shanghai to Quanta Taiwan to falsify eligibility for subsidies from the MOEA and the EPA."
The complainant bought and disassembled the scooter model for verification. The vehicle registration confirmed that the Gogoro VIVA model, which began sales in late September 2019, is listed on the MOEA and the Ministry of Transportation and Communications (MOTC, 交通部) websites as an electric scooter model eligible for subsidies under the label "GSF3BCAKT."
The disassembly revealed that the motor controller labeled "12100FA2" was shipped from Quanta Shanghai factory. The shipping documents identified the product as a "MOTOR CONTROL UNIT" made in China, confirming that the motor controllers in the Gogoro VIVA were manufactured in China.
A knowledgeable source noted that Article 13 of the directions does not stipulate that the controller's components must be made in Taiwan; it only requires the controller's "finished product" to be from Taiwan. The Gogoro VIVA's controllers, however, come from Quanta Shanghai, thus crossing the line.
Since the design commission in 2018 and the launch in September 2019, VIVA has sold 40,000 units. It is estimated that Gogoro owners have received over NT$600 million in subsidies. A former Gogoro executive openly admitted, "According to regulations, all subsidies must be returned. Gogoro could have avoided this issue by not applying for government subsidies; how they manage costs is their own business."
Gogoro stated that the VIVA model has an 88.96% domestic manufacturing rate. The model uses an integrated power system, with the circuit boards imported from overseas being only semi-finished products, not the entire motor controller, and thus not meeting the "CNS15454 Road Electric Vehicle Controller" standards. To satisfy government and consumer expectations, the company registered a change of circuit board supplier with the authorities at the beginning of 2023, completing the assembly in Taiwan. Consumer subsidies and riding rights were not affected.
The dispute over Gogoro VIVA's use of Chinese-made components is still unresolved, and now, a similar issue has arisen with the JEGO entry-level electric scooter, which was launched at the end of February.
Generous Free Motor Upgrades: New Model Recall Timing Raises Questions
In late March, an online post raised concerns about the Gogoro JEGO, which sold nearly 8,000 units in its first two months, using motor controllers produced by Guangdong-based Gobao Intelligent Technology Co., Ltd (高標智能科技) and motor stators, along with key components such as silicon steel sheets, from China's Xinzhi Motor (信質電機). The post included photos showing the two companies shipping controllers and key motor components to Gogoro.
"The stator comes from Xinzhi, and it has a part number on it. The outer box is labeled 'Xinzhi,' so it's clear that it has imported parts from Xinzhi," a former
Gogoro employee stated. The whistleblower's photos show a black iron frame serving as the central structure of the motor stator and securing the surrounding silicon steel sheets.
Regulations clearly state that all components and materials of the motor stator (including silicon steel sheets) and the controller must be manufactured in Taiwan. If the Gogoro JEGO uses Chinese products, it would not qualify for subsidies.
Addressing these concerns, Gogoro said, "JEGO is our main model at this stage, following a 'multi-country production, global sales' model. Parts, systems, and full vehicle verification are conducted at our Taiwan headquarters. All JEGO vehicles sold in Taiwan are produced in Taiwan and qualify for recognized electric scooter subsidies... The subsidy disbursement schedule depends on administrative procedures."
Whether or not the Taiwan-listed model uses Chinese components, JEGO buyers are primarily concerned with when they will receive their purchase subsidies.
Typically, it takes about three to six months for owners to receive their subsidies after purchasing the vehicle. For Gogoro JEGO owners who began receiving their vehicles in March, the subsidy disbursement is expected to occur between June and September.
Before confirming the government subsidy, Gogoro issued a recall notice on Aug. 20. The official notice explained, "Some Gogoro JEGO vehicles, due to the characteristics of the new hub motor, are prone to mud and water contamination during rainy season rides, requiring frequent cleaning. To enhance your overall experience, Gogoro offers a waterproof upgrade service and sincerely invites you to return to the factory for a free upgrade."
Essentially, Gogoro will replace the motor for free. The timing of the recall, coinciding with the JEGO subsidy controversy, inevitably raises questions. More importantly, the recall will substantially increase costs.
Industrial Development Administration Seeks Clarifications From Gogoro; Prosecutors Investigate
Following multiple reports, the Industrial Development Administration (IDA, 產發署) has taken a more cautious approach in reviewing the subsidy for Gogoro’s JEGO project.
"We are handling the Gogoro JEGO case and have not yet disbursed any funds. We are waiting for Gogoro to provide additional documents and proof," said Tung Chien-chiang (童建強), a senior technical specialist in the Metal and Mechanical Industries Division of the IDA (產發署金屬機電產業組).
Addressing allegations that some critical parts of Gogoro's vehicles are not locally made, Tung mentioned that the IDA carried out on-site inspections from May to July. They are currently awaiting further clarification from the company. The review committee will determine if there are any subsidy violations after the administrative investigation phase. "If there are problems with JEGO, the government won't release funds... the pressure is on the company," Tung said.
Reports indicate that the complaint has been submitted to investigative authorities. "The Taipei District Prosecutor’s Office (台北地檢署) is currently overseeing the investigation by the Taipei Office, MJIB," the complainant's attorney disclosed, stating that the truth will be decided by the judiciary.
Even as a much-admired unicorn, Gogoro has encountered a series of revelations shedding light on its operational management problems. "The management is strong in design and creativity but weak in procurement, production, and plant operations," an industry insider knowledgeable about Gogoro's operations observed. Reportedly, in response to this turbulence, the company has imposed a ban on Chinese-made components to address the issue conclusively.
Nonetheless, challenges lie ahead. Battery malfunctions, a spate of executive departures, and setbacks in international expansion present ongoing tests for Luke's resilience and crisis management skills.
Starting in November last year, Gogoro has faced several instances of battery power supply irregularities, which have led to vehicles entering slow mode or failing to start. These "battery failure" incidents have resulted in numerous accidents involving riders crashing or falling.
Vehicle Malfunction Causes Crash; Battery Issues Unresolved
"We are continuously recalling batteries flagged as abnormal by the system or users, having already retrieved over 10,000 units," Gogoro announced on Jan. 9. According to production records from component suppliers, "We have preemptively identified 70,000 batteries that could potentially malfunction and will gradually recall and update these components." However, recent online complaints from riders facing power cuts during rides suggest that the battery issue remains unresolved.
The saying "autumn wind stirs, cicadas sense it first" aptly captures Gogoro's persistent profitability issues. An examination of Gogoro's annual reports reveals that from 2020 to last year, revenues consistently missed expectations. In 2023, revenues slightly declined compared to 2020, with annual losses ranging from US$49 million to US$100 million.
Since its listing in the U.S. via a Special Purpose Acquisition Company (SPAC) on April 5, 2022, Gogoro's stock price plummeted from US$14.02 to just US$1.10 by Sept. 9 this year. The market value dropped by 90%, reaching a low of US$325 million. Many shareholders began reducing their holdings after the listing.
According to Gogoro's 2023 annual report, Samuel Yin (尹衍樑), chairman of the Ruentex Group (潤泰集團), owns 21.4% via Gold Sino Assets Ltd. Adding his son Yin Chung-yao’s (尹崇堯) 4% personal holding, the Yin family owns 25.4% in total. Ten senior executives and directors, including Horace Luke (陸學森), collectively own 16.5%, with Luke personally holding 7.4%.
Also, the National Development Fund (國家發展基金) invested NT$1.222 billion in Gogoro in January 2016, holding about 4% of the shares. According to data from the Taiwan Economic Journal (TEJ, 台灣經濟新報) and various company financial reports, seven Taiwan-listed companies, including Mega Financial Holdings (兆豐金), Yushan Financial Holdings (玉山金), ACP (康舒), and Foxconn Technology Group (鴻海), have also invested in Gogoro.
However, starting in 2022, three of them have been gradually reducing their stakes in Gogoro each quarter. Foxconn Technology Group's financial reports have not listed any holdings in Gogoro since the second quarter of this year, suggesting a total divestment.
Our exclusive report indicates that since the second quarter of this year, Gogoro has faced a wave of core executive resignations. Long-standing veterans such as
Chief Revenue Officer Alan Pan Jinglun (潘璟倫) and Senior Vice President of Finance Tung Ching-ya (童靖雅) have departed. In May, Marketing Chief Susan Chao (趙紹綺) resigned within a month of taking the position. By mid-September, Chief Product Officer Peng Ming-i (彭明義) also announced his resignation. These consecutive high-level departures have garnered significant market attention.
It is undeniable that Gogoro has been the target of numerous complaints. The battery incidents earlier this year, ongoing legal disputes with former employees since 2020, and this year's complaints all subtly indicate the involvement of former employees.
Key Executives Depart; Samuel Yin Stays Committed
Gogoro responded by stressing that "talent turnover is a normal aspect of long-term corporate development. Luke continues to lead the team in global brand development, revenue strategy, and business expansion, ensuring the company's operations remain stable."
Starting in 2021, Luke unveiled numerous ambitious plans for overseas expansion, targeting markets in Europe, China, India, Latin America, and Southeast Asia.
Among these, the Indian market has attracted the most attention. In January 2023, Gogoro signed a memorandum of understanding (MOU) with an Indian partner at the World Economic Forum in Davos, Switzerland. By late June, it was disclosed that Maharashtra (馬哈拉施特拉邦), home to over 120 million people, had proposed a "super project" with an investment exceeding US$1.5 billion. This project involves manufacturing Gogoro smart electric motorcycles and batteries and establishing battery swap stations, with plans to commence building energy infrastructure by the end of 2023.
Unexpectedly, as Gogoro was poised to make a significant impact in the Indian market, reports emerged that Kaushik Burman, the general manager for India, resigned last year. He subsequently established a new electric motorcycle company, Spiro, focusing on the African market.
Fortunately, Gogoro still attracts the endorsement of both new and existing shareholders. In early June, major shareholder Samuel Yin (尹衍樑), chairman of the Ruentex Group (潤泰集團) injected U$50 million through Gold Sino. By late June, BP (British Petroleum, 英國石油) also invested US$50 million through its subsidiary Castrol (嘉實多), offering timely support to Luke.
Yin explained his unwavering support and increased investment in Gogoro, stating, "Gogoro has consistently done the right thing. Be it in developing electric motorcycles or building battery swap network technology, it has become a synonym for innovation and a benchmark in the electric vehicle industry. I fully back Gogoro in leveraging its Taiwan experience to expedite global expansion."
"Others say we are merely a company that signs MOUs," Luke remarked candidly in a media interview in July. Bolstered by the new funding, he asserted, "We have our own blueprint."
Having weathered a decade of challenges and with unresolved subsidy issues, if the board continues to have expectations for Luke, his best rebuttal would be stellar business performance and delivering excellent experiences and services to nearly 600,000 Gogoro owners. Besides Luke's ambitious plans, ensuring the sustainable advancement of this esteemed Taiwanese brand is a duty the Gogoro board cannot shirk.
Here is the link to the Chinese story:
遭爆採用中國製關鍵零組件，讓政府錯發6億補助？市值跌9成、高層出走…Gogoro怎麼了
Gogoro, known for its innovative combination of smart scooters and a battery-swapping system, has successfully commercialized this concept in Taiwan. Over the past decade, it has become the leader in Taiwan's electric scooter market. In 2022, Gogoro went public in the U.S., attaining a valuation exceeding US$3.6 billion and joining the ranks of global unicorns. Under the guidance of Horace Luke (陸學森), Gogoro has consistently been a beacon of Taiwanese innovation.
Taipei City Receives Whistleblower Report Hinting at Potential Misconduct by Gogoro
In November 2021, the Ministry of Justice's Investigation Bureau (調查局) Taipei Office received a whistleblower report, sparking whispers within the industry.
According to the whistleblower report, "Luke and others, in an effort to increase sales of the Gogoro VIVA electric scooter, knowingly claimed that the scooter met the subsidy criteria set by the MOEA and the Environmental Protection Administration (EPA, 行政院環境保護署), misleading consumers into believing that the scooter was eligible for government subsidies..." (Editor's Note: The agency was elevated to the Ministry of Environment (環境部) in 2023.)
The whistleblower report directly points out that "Gogoro has sold over 40,000 units of the Gogoro VIVA. Given the government subsidies of NT$10,000 to NT$20,000 per electric scooter, the company has fraudulently secured more than NT$600 million in subsidies." The "fraudulent" subsidies cited in the report pertain to violations of the MOEA’s Electric Motorcycle Industry Subsidy Implementation Directions (經濟部推動電動機車產業補助實施要點), hereafter referred to as the "directions."
As per Article 13, Clause 6 of the directions, "The motor assembly, stator and rotor (excluding permanent magnets), components and materials, and controller used in the application must be domestically produced." The report discloses that Gogoro began developing the entry-level model Gogoro VIVA in 2018. Due to ongoing difficulties in reducing costs, the company sought to lower the procurement price of the motor controller, a major component of the vehicle's overall cost.
Taking Risks to Cut Costs: 'Believing Taiwanese Don't Deserve Good Things'
Why is Gogoro under pressure to reduce costs? A former senior executive analyzed that Gogoro's first scooter received significant attention at the Consumer Electronics Show (CES, 美國消費電子展) in January 2015 but experienced a commercial failure. Priced at NT$128,000, the Gogoro 1 was expected to sell 50,000 units in its first year but ended up selling only 2,000 to 3,000 units. "Gogoro embodied Luke's vision, nearly depleting its funds, but sales were poor. The material cost alone for the first model was NT$160,000, excluding development costs, meaning each unit sold at a loss."
"We suggested he develop a cheaper model quickly. It took him around six months to accept the idea, and he worked hard to produce the second model, the Gogoro 2, which became an instant success," the former executive disclosed. From that point on, "He felt that Taiwanese people didn't deserve good things, only cost-effective items..." The former executive remembered that in early 2019, Ray Huang (黃瑞聖), the vice president of R&D, sent an email to the R&D team discussing the procurement of key components for the motor controller. "Ray knew, and he mentioned in the email that there were gray areas in the directions, clearly aware that the government regulations prohibited the use of Chinese-made components..."
Motor Controller Origin Controversy? Quanta Shanghai Production, Taiwan Assembly
The complaint alleges that since 2018, Gogoro has outsourced the production of motor controllers, which constitute roughly 20% of the electric scooter's cost, to Quanta Shanghai (廣達上海) factory. These controllers are then shipped back to Taiwan, where Gogoro hands them over to Easy Energy Technology Co., Ltd. (意力創電機科技) for assembly into a complete power system. The final product is then delivered to Gogoro for the full scooter assembly.
According to the complaint, "The transaction should have involved invoices and packing lists issued by Quanta's Shanghai office to Gogoro. Instead, these documents were issued by Quanta's Taiwan office, deliberately altering the transaction party from Quanta Shanghai to Quanta Taiwan to falsify eligibility for subsidies from the MOEA and the EPA."
The complainant bought and disassembled the scooter model for verification. The vehicle registration confirmed that the Gogoro VIVA model, which began sales in late September 2019, is listed on the MOEA and the Ministry of Transportation and Communications (MOTC, 交通部) websites as an electric scooter model eligible for subsidies under the label "GSF3BCAKT."
The disassembly revealed that the motor controller labeled "12100FA2" was shipped from Quanta Shanghai factory. The shipping documents identified the product as a "MOTOR CONTROL UNIT" made in China, confirming that the motor controllers in the Gogoro VIVA were manufactured in China.
Since the design commission in 2018 and the launch in September 2019, VIVA has sold 40,000 units. It is estimated that Gogoro owners have received over NT$600 million in subsidies. A former Gogoro executive openly admitted, "According to regulations, all subsidies must be returned. Gogoro could have avoided this issue by not applying for government subsidies; how they manage costs is their own business."
Gogoro stated that the VIVA model has an 88.96% domestic manufacturing rate. The model uses an integrated power system, with the circuit boards imported from overseas being only semi-finished products, not the entire motor controller, and thus not meeting the "CNS15454 Road Electric Vehicle Controller" standards. To satisfy government and consumer expectations, the company registered a change of circuit board supplier with the authorities at the beginning of 2023, completing the assembly in Taiwan. Consumer subsidies and riding rights were not affected.
The dispute over Gogoro VIVA's use of Chinese-made components is still unresolved, and now, a similar issue has arisen with the JEGO entry-level electric scooter, which was launched at the end of February.
Generous Free Motor Upgrades: New Model Recall Timing Raises Questions
In late March, an online post raised concerns about the Gogoro JEGO, which sold nearly 8,000 units in its first two months, using motor controllers produced by Guangdong-based Gobao Intelligent Technology Co., Ltd (高標智能科技) and motor stators, along with key components such as silicon steel sheets, from China's Xinzhi Motor (信質電機). The post included photos showing the two companies shipping controllers and key motor components to Gogoro.
"The stator comes from Xinzhi, and it has a part number on it. The outer box is labeled 'Xinzhi,' so it's clear that it has imported parts from Xinzhi," a former
Gogoro employee stated. The whistleblower's photos show a black iron frame serving as the central structure of the motor stator and securing the surrounding silicon steel sheets.
Regulations clearly state that all components and materials of the motor stator (including silicon steel sheets) and the controller must be manufactured in Taiwan. If the Gogoro JEGO uses Chinese products, it would not qualify for subsidies.
Addressing these concerns, Gogoro said, "JEGO is our main model at this stage, following a 'multi-country production, global sales' model. Parts, systems, and full vehicle verification are conducted at our Taiwan headquarters. All JEGO vehicles sold in Taiwan are produced in Taiwan and qualify for recognized electric scooter subsidies... The subsidy disbursement schedule depends on administrative procedures."
Whether or not the Taiwan-listed model uses Chinese components, JEGO buyers are primarily concerned with when they will receive their purchase subsidies.
Typically, it takes about three to six months for owners to receive their subsidies after purchasing the vehicle. For Gogoro JEGO owners who began receiving their vehicles in March, the subsidy disbursement is expected to occur between June and September.
Before confirming the government subsidy, Gogoro issued a recall notice on Aug. 20. The official notice explained, "Some Gogoro JEGO vehicles, due to the characteristics of the new hub motor, are prone to mud and water contamination during rainy season rides, requiring frequent cleaning. To enhance your overall experience, Gogoro offers a waterproof upgrade service and sincerely invites you to return to the factory for a free upgrade."
Essentially, Gogoro will replace the motor for free. The timing of the recall, coinciding with the JEGO subsidy controversy, inevitably raises questions. More importantly, the recall will substantially increase costs.
Industrial Development Administration Seeks Clarifications From Gogoro; Prosecutors Investigate
Following multiple reports, the Industrial Development Administration (IDA, 產發署) has taken a more cautious approach in reviewing the subsidy for Gogoro’s JEGO project.
"We are handling the Gogoro JEGO case and have not yet disbursed any funds. We are waiting for Gogoro to provide additional documents and proof," said Tung Chien-chiang (童建強), a senior technical specialist in the Metal and Mechanical Industries Division of the IDA (產發署金屬機電產業組).
Addressing allegations that some critical parts of Gogoro's vehicles are not locally made, Tung mentioned that the IDA carried out on-site inspections from May to July. They are currently awaiting further clarification from the company. The review committee will determine if there are any subsidy violations after the administrative investigation phase. "If there are problems with JEGO, the government won't release funds... the pressure is on the company," Tung said.
Reports indicate that the complaint has been submitted to investigative authorities. "The Taipei District Prosecutor’s Office (台北地檢署) is currently overseeing the investigation by the Taipei Office, MJIB," the complainant's attorney disclosed, stating that the truth will be decided by the judiciary.
Even as a much-admired unicorn, Gogoro has encountered a series of revelations shedding light on its operational management problems. "The management is strong in design and creativity but weak in procurement, production, and plant operations," an industry insider knowledgeable about Gogoro's operations observed. Reportedly, in response to this turbulence, the company has imposed a ban on Chinese-made components to address the issue conclusively.
Nonetheless, challenges lie ahead. Battery malfunctions, a spate of executive departures, and setbacks in international expansion present ongoing tests for Luke's resilience and crisis management skills.
Starting in November last year, Gogoro has faced several instances of battery power supply irregularities, which have led to vehicles entering slow mode or failing to start. These "battery failure" incidents have resulted in numerous accidents involving riders crashing or falling.
Vehicle Malfunction Causes Crash; Battery Issues Unresolved
"We are continuously recalling batteries flagged as abnormal by the system or users, having already retrieved over 10,000 units," Gogoro announced on Jan. 9. According to production records from component suppliers, "We have preemptively identified 70,000 batteries that could potentially malfunction and will gradually recall and update these components." However, recent online complaints from riders facing power cuts during rides suggest that the battery issue remains unresolved.
The saying "autumn wind stirs, cicadas sense it first" aptly captures Gogoro's persistent profitability issues. An examination of Gogoro's annual reports reveals that from 2020 to last year, revenues consistently missed expectations. In 2023, revenues slightly declined compared to 2020, with annual losses ranging from US$49 million to US$100 million.
Since its listing in the U.S. via a Special Purpose Acquisition Company (SPAC) on April 5, 2022, Gogoro's stock price plummeted from US$14.02 to just US$1.10 by Sept. 9 this year. The market value dropped by 90%, reaching a low of US$325 million. Many shareholders began reducing their holdings after the listing.
According to Gogoro's 2023 annual report, Samuel Yin (尹衍樑), chairman of the Ruentex Group (潤泰集團), owns 21.4% via Gold Sino Assets Ltd. Adding his son Yin Chung-yao’s (尹崇堯) 4% personal holding, the Yin family owns 25.4% in total. Ten senior executives and directors, including Horace Luke (陸學森), collectively own 16.5%, with Luke personally holding 7.4%.
Also, the National Development Fund (國家發展基金) invested NT$1.222 billion in Gogoro in January 2016, holding about 4% of the shares. According to data from the Taiwan Economic Journal (TEJ, 台灣經濟新報) and various company financial reports, seven Taiwan-listed companies, including Mega Financial Holdings (兆豐金), Yushan Financial Holdings (玉山金), ACP (康舒), and Foxconn Technology Group (鴻海), have also invested in Gogoro.
However, starting in 2022, three of them have been gradually reducing their stakes in Gogoro each quarter. Foxconn Technology Group's financial reports have not listed any holdings in Gogoro since the second quarter of this year, suggesting a total divestment.
Our exclusive report indicates that since the second quarter of this year, Gogoro has faced a wave of core executive resignations. Long-standing veterans such as
Chief Revenue Officer Alan Pan Jinglun (潘璟倫) and Senior Vice President of Finance Tung Ching-ya (童靖雅) have departed. In May, Marketing Chief Susan Chao (趙紹綺) resigned within a month of taking the position. By mid-September, Chief Product Officer Peng Ming-i (彭明義) also announced his resignation. These consecutive high-level departures have garnered significant market attention.
It is undeniable that Gogoro has been the target of numerous complaints. The battery incidents earlier this year, ongoing legal disputes with former employees since 2020, and this year's complaints all subtly indicate the involvement of former employees.
Key Executives Depart; Samuel Yin Stays Committed
Gogoro responded by stressing that "talent turnover is a normal aspect of long-term corporate development. Luke continues to lead the team in global brand development, revenue strategy, and business expansion, ensuring the company's operations remain stable."
Starting in 2021, Luke unveiled numerous ambitious plans for overseas expansion, targeting markets in Europe, China, India, Latin America, and Southeast Asia.
Among these, the Indian market has attracted the most attention. In January 2023, Gogoro signed a memorandum of understanding (MOU) with an Indian partner at the World Economic Forum in Davos, Switzerland. By late June, it was disclosed that Maharashtra (馬哈拉施特拉邦), home to over 120 million people, had proposed a "super project" with an investment exceeding US$1.5 billion. This project involves manufacturing Gogoro smart electric motorcycles and batteries and establishing battery swap stations, with plans to commence building energy infrastructure by the end of 2023.
Unexpectedly, as Gogoro was poised to make a significant impact in the Indian market, reports emerged that Kaushik Burman, the general manager for India, resigned last year. He subsequently established a new electric motorcycle company, Spiro, focusing on the African market.
Fortunately, Gogoro still attracts the endorsement of both new and existing shareholders. In early June, major shareholder Samuel Yin (尹衍樑), chairman of the Ruentex Group (潤泰集團) injected U$50 million through Gold Sino. By late June, BP (British Petroleum, 英國石油) also invested US$50 million through its subsidiary Castrol (嘉實多), offering timely support to Luke.
Yin explained his unwavering support and increased investment in Gogoro, stating, "Gogoro has consistently done the right thing. Be it in developing electric motorcycles or building battery swap network technology, it has become a synonym for innovation and a benchmark in the electric vehicle industry. I fully back Gogoro in leveraging its Taiwan experience to expedite global expansion."
"Others say we are merely a company that signs MOUs," Luke remarked candidly in a media interview in July. Bolstered by the new funding, he asserted, "We have our own blueprint."
Having weathered a decade of challenges and with unresolved subsidy issues, if the board continues to have expectations for Luke, his best rebuttal would be stellar business performance and delivering excellent experiences and services to nearly 600,000 Gogoro owners. Besides Luke's ambitious plans, ensuring the sustainable advancement of this esteemed Taiwanese brand is a duty the Gogoro board cannot shirk.
Here is the link to the Chinese story:
遭爆採用中國製關鍵零組件，讓政府錯發6億補助？市值跌9成、高層出走…Gogoro怎麼了
