Gogoro's CEO resigned as Taiwan probed imported parts claimed as local to win subsidies

On 16 September 2024 TechCrunch reported that Taiwanese electric scooter and battery-swapping company Gogoro said in a regulatory filing that CEO and chairman Horace Luke had stepped down amid subsidy fraud allegations. Gogoro allegedly used Chinese parts in its e-scooters to cut costs while reporting that it used locally made parts to qualify for government subsidies.

In the filing, Gogoro said internal investigations had identified 'certain irregularities' in the supply chain that caused it to 'inadvertently incorporate certain imported components in some of its vehicles'. It said Luke resigned to show the company's resolve to fully cooperate with local authorities as the investigation continued.

TechCrunch noted that since going public in 2022 Gogoro had been hurt by exchange rates and a push into markets such as the Philippines and Indonesia. In the second quarter of 2024 it recorded a $20.1 million loss, up from $5.6 million in Q2 2023.

CEO and chairman Horace Luke resigned; Gogoro lost $20.1M in Q2 2024 against $5.6M a year earlier, and the subsidy fraud investigation continued.

Using cheaper imported Chinese parts reduced manufacturing costs, per the allegation, while subsidies required locally made content.

Gogoro's own investigation admitted imported components had entered some vehicles through supply-chain irregularities.

Gogoro was reporting growing losses ($20.1M in Q2 2024) from currency swings and costly expansion into the Philippines and Indonesia.

Subsidy eligibility rests on origin claims that can be audited. If sourcing shifts to cheaper imported parts, the paperwork must change too, or leadership pays for the gap.

Luke's resignation was framed as a show of cooperation with Taiwanese authorities, and the investigation was still open at the time of the report. The article gives no penalty figure, subsidy amount, or legal outcome, and the subsidy fraud claim is an allegation, with Gogoro describing the imported components as inadvertent.