BOULDER, Colo.-Cellport Systems Inc. laid off about 80 employees and plans to exit the hands-free car kit manufacturing business.
Company spokeswoman Lori Pidick told The Denver Post that all the demand and interest in Cellport’s product drained the company’s capital resources.
Cellport wants to find another company to buy out its contracts with several auto manufacturers, most notably the contract it holds with Ford Motor Co. The Ford contract is estimated to be worth $48 million over two years, but Cellport has not received any money because it has yet to deliver the kits.
Pidick said Cellport is looking for a company that is more heavily capitalized and has more experience in manufacturing.
A research firm prior to its entry into telematics about two years ago, Cellport will go back to operating as a research firm after it sheds its hands-free business, according to the Post.
