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September 6, 2013

South Bend company taking over defunct Mich. van maker

SOUTH BEND (AP) — AM General is taking over a Michigan company that received a $50 million federal loan to make vans for the disabled before it ran into financial troubles.

South Bend-based AM General says it has reached an agreement with the U.S. Department of Energy to buy the secured loan for the Vehicle Production Group of Allen Park, Mich.

AM General had built VPG's wheelchair-accessible vans under contract and plans to resume production at its Mishawaka (mish-ah-WAH'-kuh) factory, possibly hiring hundreds of workers at the northern Indiana plant. AM General says it expects production to start within 45 days.

Former VPG CEO John Walsh tells the South Bend Tribune he believes AM General is the right company to bring the vans back to market and that it'll be successful.

 

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