ECD Auto Design Adds Blackbridge Motors Defenders to Product Lineup

Rhea-AI Summary

ECD Automotive Design (Nasdaq:ECDA) has entered into a licensing agreement with Blackbridge Motors to produce branded classic Land Rover Defender SUVs at their Kissimmee, FL facility. This marks ECDA's first Defender agreement, allowing them to expand within the luxury Defender market and increase factory utilization.

The agreement provides ECD access to Blackbridge's IP, branding, and marketing support in exchange for a fee and royalty per vehicle sale. Blackbridge has averaged 15 Defenders annually over the past three years, at a price point similar to ECD's. This collaboration is expected to enhance ECDA's industry-leading margins and increase production line backlog in a capital-efficient manner.

CEO Scott Wallace emphasized that this strategic relationship allows ECDA to capture more of the $15 billion classic car ecosystem, increase productivity, and scale their business uniquely within the industry.

Positive

• Licensing agreement with Blackbridge Motors expands ECDA's product lineup
• Increases production line backlog without significant capital investment
• Access to Blackbridge's IP, branding, and marketing support
• Potential for enhanced margins at luxury price points
• Opportunity to increase factory utilization and productivity

Negative

• None.

Insights

Financial Analyst

This licensing agreement with Blackbridge Motors marks a strategic move for ECD Automotive Design. The deal is capital-efficient, allowing ECDA to expand its product line and increase factory utilization without significant upfront investment. With Blackbridge's average of 15 Defenders annually at a similar price point to ECD's offerings, this could potentially boost ECDA's revenue and profitability.

The agreement's structure, involving a fee and royalty per vehicle sale, suggests a low-risk expansion strategy. It's particularly noteworthy that this move aligns with ECDA's goal to enhance industry-leading margins while maintaining a luxury price point. Investors should monitor how this impacts ECDA's financial performance in upcoming quarters, especially in terms of revenue growth and margin expansion.

Market Research Analyst

ECDA's expansion into Blackbridge Motors' Defenders represents a shrewd market positioning move. By tapping into Blackbridge's established brand and top-of-funnel marketing, ECDA can potentially capture a larger market share in the luxury Defender segment without diluting its own brand identity.

The $15 billion classic car ecosystem presents significant opportunities for ECDA's growth strategy. This licensing agreement could be a stepping stone towards ECDA's broader ambition to consolidate the fragmented luxury classic car industry. Investors should watch for future partnerships or acquisitions that might further strengthen ECDA's position in this lucrative market.

Operations Management Expert

The Blackbridge Motors agreement showcases ECDA's focus on operational efficiency. By utilizing existing factory capacity to produce additional models, ECDA can potentially reduce fixed costs per unit and improve overall profitability. This move towards increased factory utilization is a smart play in an industry where scaling production can be challenging.

The emphasis on capital efficiency in this deal is particularly noteworthy. It allows ECDA to expand its product range and potentially increase output without significant capital expenditure. This approach could lead to improved return on invested capital (ROIC) metrics, which are important for long-term value creation in manufacturing businesses.

Licensing agreement is the Company’s first Defender agreement and increases production line backlog in capital efficient manner

KISSIMMEE, Fla., Aug. 27, 2024 (GLOBE NEWSWIRE) -- ECD Automotive Design, Inc. (Nasdaq:ECDA) (“ECDA” or the “Company”), an industry leader in delivering restored, modified and electrified Land Rover Defenders, Jaguars, and other classic and collectible automobiles announced today that it entered into a licensing agreement with Blackbridge Motors to produce branded classic Land Rover Defender SUVs at their Kissimmee, FL facility.

The license agreement provides ECD access to Blackbridge’s IP, branding and top-of-funnel marketing support in exchange for a fee and royalty per vehicle sale. Blackbridge Motors is a resto-mod producer of classic Land Rover Defenders that blend heritage style and modern performance.

Producing the Blackbridge Defenders allows ECD to expand within the luxury Defender market, increase factory utilization and enhance its industry-leading margins at a luxury price point with a fully bespoke customization package. Over the past three years, Blackbridge has averaged 15 Defenders annually, at a price point that is similar to ECD.

Scott Wallace, CEO of ECD Auto Design, said, “Working with Blackbridge allows us further progress within our strategy to fill our factory. This relationship introduces new models to ECD’s line-up, providing the company flexibility and increased market penetration in a capital-efficient manner.”

Mr. Wallace continued, “The strategic relationship with Blackbridge allows us to capture more of the classic car ecosystem while increasing the productivity of our facility, allowing us to capture additional operating leverage and scale our business in ways that others in this industry have yet to achieve. Beyond manufacturing, we believe the classic car ecosystem is a $15 billion industry encompassing manufacturing, storage, financing and consignment. We have big plans for this company as we continue executing on our strategy to establish a luxury brand that can consolidate a historically large but fragmented luxury classic car industry.”

About Blackbridge Motors

Blackbridge Motors offers re-engineered solutions to classic car ownership that provides a modern driving experience while retaining the vehicle’s iconic design. For more information, visit www.blackbridgemotors.com

About ECD Auto Design

ECD, a public company trading under ECDA on the Nasdaq, is a creator of restored luxury vehicles that combines classic English beauty with modern performance. Currently, ECD restores Land Rovers Defenders, Land Rover Series IIA, the Range Rover Classic, the Jaguar E-Type and we have recently added the Ford Mustang. Each vehicle produced by ECD is fully bespoke, a one-off that is designed by the client through an immersive luxury design experience and hand-built from the ground up in 2,200 hours by master-certified Automotive Service Excellence ("ASE") craftsmen. The company was founded in 2013 by three British "gear heads' whose passion for classic vehicles is the driving force behind exceptionally high standards for quality, custom luxury vehicles. ECD's global headquarters, known as the "Rover Dome," is a 100,000-square-foot facility located in Kissimmee, Florida that is home to 90 talented craftsmen and technicians, who hold a combined 61 ASE and five master level certifications. ECD has an affiliated logistics center in the U.K. where its seven employees work to source and transport 25-year-old work vehicles back to the U.S. for restoration. For more information, visit www.ecdautodesign.com.

Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters, but the absence of these words does not mean that a statement is not forward-looking. These forward-looking statements include, but are not limited to, statements regarding estimates and forecasts of other performance metrics and projections of market opportunity. These statements are based on various assumptions, whether or not identified in this communication and on the current expectations of ECD’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of ECD. Some important factors that could cause actual results to differ materially from those in any forward-looking statements could include changes in domestic and foreign business, market, financial, political and legal conditions.

If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that ECD do not presently know, or that ECD currently believe are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect ECD’s current expectations, plans and forecasts of future events and views as of the date hereof. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on the forward-looking statements contained in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein and the risk factors of ECD described in ECD’s Annual Report on Form 10-K for the year ended December 31, 2023, which was filed by ECD with the SEC on May 3, 2024, including those under “Risk Factors” therein, and other documents that ECD may file or furnish with the SEC, which you are encouraged to read. ECD anticipates that subsequent events and developments will cause its assessments to change. However, while ECD may elect to update these forward-looking statements at some point in the future, ECD specifically disclaims any obligation to do so, except as required by law. These forward-looking statements should not be relied upon as representing ECD’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.

Investor Contact:
Brian M. Prenoveau, CFA
MZ Group – MZ North America
ECDA@mzgroup.us
+561 489 5315

SOURCE: ECD Automotive Design, Inc.

FAQ

What is the significance of ECD Automotive Design's licensing agreement with Blackbridge Motors?

The agreement allows ECDA to produce branded classic Land Rover Defenders, expanding their product lineup and increasing production line backlog in a capital-efficient manner. It's ECDA's first Defender agreement, providing access to Blackbridge's IP, branding, and marketing support.

How many Defenders has Blackbridge Motors averaged annually over the past three years?

Blackbridge Motors has averaged 15 Defenders annually over the past three years, at a price point similar to ECD Automotive Design (ECDA).

What is the estimated size of the classic car ecosystem according to ECDA (Nasdaq:ECDA)?

According to ECDA, the classic car ecosystem is estimated to be a $15 billion industry, encompassing manufacturing, storage, financing, and consignment.

How does the Blackbridge Motors agreement align with ECD Automotive Design's (ECDA) strategy?

The agreement aligns with ECDA's strategy to fill their factory, introduce new models, increase market penetration, and capture more of the classic car ecosystem. It allows ECDA to scale their business and consolidate the fragmented luxury classic car industry.