Horace Luke, CEO of Taiwanese electric scooter maker Gogoro, has stepped down amid ongoing financial difficulties and allegations of subsidy fraud involving the use of Chinese-made components instead of locally sourced parts.
The company has faced mounting losses, with second-quarter figures rising from US$5.6 million last year to US$20.1 million this year, and gross margins dropping from 15.2% to 5.2%, according to the Taipei Times.
Gogoro’s board of directors has appointed Tamon Tseng, general counsel of Ruentex Group, as the new chairman. Ruentex Group is the company’s largest shareholder.
In an internal email to employees, Luke said, “After much reflection, I have made the difficult decision to step down from my role as CEO and chairman of Gogoro… I believe it is the right time for the company and I to transition leadership as we embark on the next phase of growth.” He expressed continued confidence in the company’s future.
Despite recent investments, including a US$50 million infusion from Castrol in June and market expansions into Singapore and India, Gogoro’s stock price has plummeted 92% since its 2022 IPO.
The company is also facing an investigation by Taiwan’s Ministry of Economic Affairs over allegations of subsidy fraud, further clouding its outlook.
