Mullen Announces Spencer Manufacturing to Purchase Bollinger Motors B4 EV Chassis Cabs for Emergency Vehicles

Rhea-AI Summary

Mullen Automotive, an electric vehicle (EV) manufacturer, announced that its subsidiary, Bollinger Motors, has secured an agreement to sell five all-electric Class 4 Bollinger B4 commercial trucks to Spencer Manufacturing for $825,000. Spencer will convert these trucks into fire rescue vehicles using its patented Solid-Poly® process. The trucks will be delivered in the second half of 2024. The Bollinger B4 is noted for its durability, reliability, and performance, making it suitable for emergency services. Bollinger Motors recently achieved several milestones, such as EPA certification, multiple vehicle sales, and strategic partnerships in battery supply, vehicle assembly, and mobile service provision.

Positive

• Bollinger Motors secured an $825,000 order for five Bollinger B4 trucks from Spencer Manufacturing.
• The Bollinger B4 trucks will be used for fire rescue, highlighting their suitability for high-performance applications.
• Bollinger Motors has achieved several recent milestones including EPA certification, and significant vehicle sales to Momentum Groups and EnviroCharge.
• Bollinger Motors qualified for federal clean vehicle purchasing incentives under the Inflation Reduction Act, providing $40,000 in tax credits per truck.
• Strategic partnerships with Nacarato Truck Centers, Nuss Truck & Equipment, LaFontaine Auto Group, Our Next Energy, Roush Industries, Syncron, and Amerit Fleet Solutions.

Negative

• None.

Market Research Analyst

The agreement between Mullen Automotive's subsidiary, Bollinger Motors and Spencer Manufacturing for the purchase of five Bollinger B4 chassis cabs signifies a strategic advancement in the electric vehicle market, particularly in specialized applications like emergency services. The valuation of $825,000 for this order is notable for a small volume, highlighting the premium nature of these EVs. This transaction reflects a growing confidence in electric vehicles' durability and performance.

Key considerations for investors are Bollinger's ability to maintain production timelines and quality, as the deal is contingent on the launch of production in the latter half of 2024. Spencer Manufacturing's endorsement through this purchase can be viewed as an endorsement of Bollinger's technology, potentially influencing other specialty vehicle manufacturers to explore similar partnerships.

However, it's essential to consider that this order, while positive, is relatively small in scale. The broader impact on Mullen's revenue and market positioning heavily depends on subsequent larger orders and consistent deliveries. Investors should also keep an eye on Bollinger's ability to leverage federal incentives effectively, as this can significantly influence the financial viability of their offerings.

Financial Analyst

From a financial perspective, the announcement represents a modest but strategic revenue inflow of approximately $825,000. While this alone is not a game changer for Mullen's financials, it does bolster their narrative of expanding into niche markets like emergency services, which require high-performance and reliable vehicles.

The recent milestones achieved by Bollinger Motors, including federal incentives and several sales agreements, illustrate a growing operational momentum. However, investors should closely monitor how these milestones translate into sustainable revenue streams and profitability. The successful integration of supply chain partners such as Our Next Energy for battery packs and Roush Industries for assembly operations will be critical in maintaining production efficiency and meeting delivery commitments.

Given the nascent stage of EV adoption in specialized commercial markets, this order, though positive, should be viewed as part of a longer-term growth strategy rather than immediate financial relief. The reliance on federal tax credits also introduces policy risk, which investors should consider.

Tech Expert

The technical implications of Bollinger's B4 chassis cabs being chosen for emergency vehicles are significant. The 800-volt battery system offers higher efficiency and faster charging than traditional systems, which is important for emergency services that require rapid deployment and reliability. The chassis design also enhances the vehicle's flexibility and serviceability, making it a practical choice for varied and demanding use cases in emergency services.

Bollinger Motors' ability to secure a Certificate of Conformity from the EPA underscores the compliance and readiness of their technology for market deployment. The strategic partnerships with suppliers and service centers, such as Our Next Energy and Amerit Fleet Solutions, are pivotal in ensuring the long-term operability and service support for their vehicles. This network will be essential for maintaining the reliability that emergency services demand.

For investors, the technical robustness of the B4, combined with these strategic alliances, points to a well-considered entry into the specialized EV market. However, the scalability of these technical advantages remains to be proven with larger order volumes and broader market penetration.

Order includes 5 Bollinger B4 trucks and is valued at approximately $825,000

Durability, dependability, performance make the Bollinger B4 the right choice

 for fire rescue trucks

BREA, Calif., July 09, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today its subsidiary, Bollinger Motors, has reached an agreement to sell five all-electric Class 4 Bollinger B4 commercial trucks to Spencer Manufacturing (“Spencer”), which will upfit the vehicles into fire rescue trucks. The vehicle order is valued at approximately $825,000. 

Spencer Manufacturing is a specialty upfitter of rescue vehicles and fire trucks, including ladder, pumper, tanker, and grass/wildland trucks. The company has a national sales footprint working primarily with municipal fire departments. Spencer Manufacturing will take possession of the vehicles after Bollinger Motors launches production in the second half of 2024.

Spencer uses its unique, patented Solid-Poly® process to deliver emergency services vehicles that are corrosion free and high-impact and damage resistant. The vehicles come with a lifetime warranty on the substructure, body and tank, while featuring maximized water and storage capabilities.

“We are impressed by the overall engineering of the Bollinger B4 and confident it will make an excellent emergency services vehicle,” said Grant Spencer, president of Spencer Manufacturing. “Our agreement with Bollinger Motors is another example of how we can provide unique and innovative emergency vehicle solutions to our customers.”

“We are excited to work with Spencer Manufacturing to use the Bollinger B4 to keep communities safe,” said Jim Connelly, chief revenue officer for Bollinger Motors. “Durability, reliability and outstanding performance are critical for public safety vehicles and we are proud that Spencer Manufacturing is putting its trust in the Bollinger B4.”

The Bollinger B4 Chassis Cab is an all-new, battery-electric, zero-emissions Class 4 commercial truck designed from the ground up with extensive fleet and upfitter input. Bollinger’s unique chassis design protects the 800-volt battery and components to offer unparalleled capability, flexibility, performance and serviceability in the commercial market. Bollinger Motors recently qualified for federal clean vehicle purchasing incentives under the Inflation Reduction Act, which provides $40,000 in refundable tax credits per truck.

Bollinger Motors has reached several milestones in recent months, including: receiving the Certificate of Conformity from the Environmental Protection Agency; an 80-vehicle sale to Momentum Groups; a 50-vehicle sale to EnviroCharge; the addition of Nacarato Truck Centers, Nuss Truck & Equipment, and LaFontaine Auto Group as dealers and service centers; Our Next Energy in Novi, Michigan, to supply battery packs; Roush Industries in Livonia, Michigan, to manage vehicle assembly operations; Syncron as its warranty administration partner; and Amerit Fleet Solutions as its mobile service provider.

About Spencer Manufacturing
Founded in 1986 in South Haven, Michigan, Spencer Manufacturing is a privately held family business providing specialty upfitting for emergency services vehicles. The company works with municipalities throughout the country to provide customized designs that fit the unique needs of individual fire departments.

About Bollinger Motors
Founded in 2015 by Robert Bollinger, Bollinger Motors, Inc. is a U.S.-based company headquartered in Oak Park, Michigan. Bollinger Motors is developing all-electric commercial chassis cab trucks, Classes 4-6. In September of 2022, Bollinger Motors became a majority owned company of Mullen Automotive, Inc. (NASDAQ: MULN). Learn more at www.BollingerMotors.com and www.MullenUSA.com.  

About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of commercial electric vehicles (“EVs”) with two United States-based vehicle plants located in Tunica, Mississippi, (120,000 square feet) and Mishawaka, Indiana (650,000 square feet). In August 2023, Mullen began commercial vehicle production in Tunica. In September 2023, Mullen received IRS approval for federal EV tax credits on its commercial vehicles with a Qualified Manufacturer designation that offers eligible customers up to $7,500 per vehicle. As of January 2024, both the Mullen ONE, a Class 1 EV cargo van, and Mullen THREE, a Class 3 EV cab chassis truck, are California Air Resource Board (“CARB”) and EPA certified and available for sale in the U.S. Recently, CARB issued HVIP approval on the Mullen THREE, Class 3 EV truck, providing up to a $45,000 cash voucher at time of vehicle purchase. The Company has also recently expanded its commercial dealer network with the addition of Pritchard EV, National Auto Fleet Group, Ziegler Truck Group, Range Truck Group and Eco Auto, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest and New England markets. The Company also recently announced Foreign Trade Zone (“FTZ”) status approval for its Tunica, Mississippi, commercial vehicle manufacturing center. FTZ approval provides a number of benefits, including deferment of duties owed and elimination of duties on exported vehicles.

To learn more about the Company, visit www.MullenUSA.com.

Forward-Looking Statements

Certain statements in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1934, as amended. Any statements contained in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as "continue," "will," "may," "could," "should," "expect," "expected," "plans," "intend," "anticipate," "believe," "estimate," "predict," "potential" and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Mullen and are difficult to predict. Examples of such risks and uncertainties include, but are not limited to, the timing of completion and delivery of vehicles contemplated by the Spencer Manufacturing order, and the continued availability of governmental incentives for electric vehicle purchases.  Additional examples of such risks and uncertainties include but are not limited to: (i) Mullen’s ability (or inability) to obtain additional financing in sufficient amounts or on acceptable terms when needed; (ii) Mullen's ability to maintain existing, and secure additional, contracts with manufacturers, parts and other service providers relating to its business; (iii) Mullen’s ability to successfully expand in existing markets and enter new markets; (iv) Mullen’s ability to successfully manage and integrate any acquisitions of businesses, solutions or technologies; (v) unanticipated operating costs, transaction costs and actual or contingent liabilities; (vi) the ability to attract and retain qualified employees and key personnel; (vii) adverse effects of increased competition on Mullen’s business; (viii) changes in government licensing and regulation that may adversely affect Mullen’s business; (ix) the risk that changes in consumer behavior could adversely affect Mullen’s business; (x) Mullen’s ability to protect its intellectual property; and (xi) local, industry and general business and economic conditions. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in the most recent annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K filed by Mullen with the Securities and Exchange Commission. Mullen anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Mullen assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Mullen’s plans and expectations as of any subsequent date.

SOURCE Bollinger Motors

Contact:
Mullen Automotive, Inc.
+1 (714) 613-1900
www.MullenUSA.com

Corporate Communications:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com

FAQ

What is the value of Bollinger Motors' recent order from Spencer Manufacturing?

The order from Spencer Manufacturing for five Bollinger B4 trucks is valued at approximately $825,000.

When will Bollinger Motors deliver the B4 trucks to Spencer Manufacturing?

The Bollinger B4 trucks will be delivered to Spencer Manufacturing in the second half of 2024.

What will Spencer Manufacturing do with the Bollinger B4 trucks?

Spencer Manufacturing will convert the Bollinger B4 trucks into fire rescue vehicles using their patented Solid-Poly® process.

What recent milestones has Bollinger Motors achieved?

Bollinger Motors has received EPA certification, secured vehicle sales to Momentum Groups and EnviroCharge, and formed partnerships with various companies for batteries, assembly, and service.

What federal incentive is Bollinger Motors eligible for under the Inflation Reduction Act?

Bollinger Motors is eligible for $40,000 in refundable tax credits per truck under the Inflation Reduction Act.