Cenntro Establishes Assembly and Distribution Facility in Ontario, California to Serve U.S. Markets

Rhea-AI Summary

Cenntro, a leader in electric commercial vehicles, has announced the opening of a new assembly and distribution facility in Ontario, California. This facility will support the company's expanding sales on the U.S. west coast. The California facility has full-scale production capabilities for the LS400 and Metro vehicle models and has already delivered over three dozen LS400 units. This strategic move aims to enhance production efficiency, reduce delivery times, and help customers electrify their fleets more effectively. Cenntro will continue to produce these models at its New Jersey facility to serve the east coast while winding down operations at its Florida site.

Positive

• New facility in Ontario, California enhances production efficiency.
• Over three dozen LS400 units delivered to west coast customers as of June.
• Improved delivery times due to proximity to the port.
• Continued production in New Jersey to support east coast sales.
• Strategic move aims to lower operational costs for fleet customers.

Negative

• Winding down of operations at the Jacksonville, Florida facility.

Insights

Financial Analyst

Cenntro's strategic move to establish a new assembly and distribution facility in Ontario, California, is a noteworthy development. This decision signifies the company's commitment to enhancing its operational efficiency and expanding its presence in the West Coast market. From a financial standpoint, having a production facility closer to the port reduces logistics costs and lead time, positively impacting the company's margins.

Short-term implications: The immediate benefit is the reduction in transportation costs and faster delivery times, which should appeal to fleet customers looking for quick and efficient electrification solutions. The assembly of over three dozen LS400 units already demonstrates the facility's operational readiness and potential to ramp up production swiftly.

Long-term outlook: The strategic positioning of the facility could help Cenntro capture a larger market share on the West Coast. As the demand for EVs grows, proximity to key markets becomes increasingly important. This move could also lead to enhanced customer satisfaction and stronger brand loyalty. However, the wind-down of operations at the Jacksonville facility might incur some transition costs and temporary inefficiencies, which need to be managed effectively to avoid impacting the company's overall performance.

Investors should monitor the financial reports for any associated costs and the pace at which the new facility scales up its production capabilities to gauge the full impact on Cenntro's financial health.

Market Research Analyst

This new facility in Ontario, California, is strategically beneficial for Cenntro's market expansion efforts. California is a significant market for electric vehicles, with state policies and incentives fostering EV adoption. Establishing a local production and distribution site ensures Cenntro is well-positioned to leverage these advantages.

Market trends: The West Coast, particularly California, has been leading the charge in EV adoption due to stringent emission standards and favorable government policies. Cenntro's presence in this market aligns well with these trends and positions the company to capitalize on increasing demand from both commercial and public sector fleet operators.

Competitive landscape: By having production capabilities in California, Cenntro can better compete with other EV manufacturers who have established local operations. The ability to offer faster delivery and potentially lower costs due to reduced transportation expenses can be a significant competitive edge. Investors should observe how this move influences Cenntro's market share and competitive positioning over the next few quarters.

New Facility Reinforces Cenntro’s Commitment to Serve West Coast EV Markets

FREEHOLD, N.J.--(BUSINESS WIRE)-- Cenntro Inc. (NASDAQ: CENN) (“Cenntro” or “the Company”), a leading electric commercial vehicle company with advanced, market-validated, and purpose-built vehicles, today announced the establishment of a California-based electric vehicle (“EV”) production and distribution assembly facility to support expanding sales in the United States (“U.S.”) west coast market.

Cenntro’s Ontario, California assembly and distribution facility supports production operations with a strong focus on the U.S. west coast market. Our California facility has full-scale production capabilities for the LS400 and Metro vehicle models sold in the U.S.

As of June of this year, the California facility has assembled and delivered over three dozen LS400 units to west coast customers. Production from this facility, with its shortened time from the port to the facility supports our North American sales initiatives and provides our west coast customers the opportunity to electrify their fleet more efficiently. Cenntro will continue production of the LS400 and Metro vehicle models at its assembly facility in Howell, New Jersey to serve the east coast of the U.S. while it is winding down operations at its Jacksonville facility in Florida.

“With our expanded production capacity in California, Cenntro is positioned for more efficient delivery our EVs to the west coast market. With this strategic shift, we intend to continue driving sales by improving our production capability and providing fleet customers with the ability to electrify their fleet, reduce their carbon footprint, and significantly lower their cost of operations,” said Peter Wang, Chairman and CEO of Cenntro.

About Cenntro

Cenntro (NASDAQ: CENN) is a leading maker and provider of electric commercial vehicles (“ECVs”). Cenntro's purpose-built ECVs are designed to serve a variety of commercial applications inclusive of its line of class 1 to class 4 trucks. Cenntro is building a globalized supply-chain, as well as the manufacturing, distribution, and service capabilities for its innovative and reliable products. Cenntro continues to evolve its products capabilities through advanced battery, powertrain, and smart driving technologies. For more information, please visit Cenntro's website at: www.cenntroauto.com.

Forward-Looking Statements

This communication contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. Such statements may be, but need not be, identified by words such as "may," "believe," "anticipate," "could," "should," "intend," "plan," "will," "aim(s)," "can," "would," "expect(s)," "estimate(s)," "project(s)," "forecast(s)," "positioned," "approximately," "potential," "goal," "strategy," "outlook" and similar expressions. Examples of forward-looking statements include, among other things, statements regarding assembly and distribution capabilities, decentralized production, and fully digitalized autonomous driving solutions. All such forward-looking statements are based on management's current beliefs, expectations and assumptions, and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed or implied in this communication. For additional risks and uncertainties that could impact Cenntro’s forward-looking statements, please see disclosures contained in Cenntro's public filings with the SEC, including the "Risk Factors" in Cenntro's Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 1, 2024 and which may be viewed at www.sec.gov.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240709407838/en/

Investor Relations Contact:

Chris Tyson

MZ North America

CENN@mzgroup.us

949-491-8235

Company Contact:

PR@cenntroauto.com

IR@cenntroauto.com

Source: Cenntro Inc.

FAQ

What new facility did Cenntro announce?

Cenntro announced a new assembly and distribution facility in Ontario, California.

How many LS400 units has Cenntro's California facility delivered?

The California facility has delivered over three dozen LS400 units as of June.

What vehicle models are produced at Cenntro's California facility?

The California facility produces the LS400 and Metro vehicle models.

Why is Cenntro winding down operations at its Jacksonville facility?

Cenntro is winding down operations at the Jacksonville facility to focus on the new California facility for serving the west coast market.

What is the impact of the new facility on Cenntro's delivery times?

The new California facility shortens delivery times due to its proximity to the port.