Mullen Enters into Sales and Service Agreement with Papé Kenworth; one of America’s Leading Commercial Dealer Groups

Rhea-AI Summary

Mullen Automotive (NASDAQ: MULN) has entered into a sales and service agreement with Papé Kenworth, expanding its commercial EV dealer network. Papé Kenworth, part of the Papé Group, operates in 9 states with over 150 locations, 815 service bays, and 1,500 technicians. This partnership marks Mullen's seventh franchise dealer addition in recent months.

The collaboration aims to accelerate commercial EV adoption by combining Mullen's innovative lineup with Papé Kenworth's extensive network and industry expertise. Mullen's commercial EVs include the Class 1 Mullen ONE cargo van and Class 3 Mullen THREE cab chassis truck, both compliant with U.S. safety standards and eligible for various state and federal incentives.

Positive

• Expansion of commercial EV dealer network with addition of Papé Kenworth
• Access to Papé Kenworth's extensive network of 150+ locations across 9 states
• Potential for accelerated commercial EV adoption through partnership
• Mullen's EVs are compliant with U.S. Federal Motor Vehicle Safety Standards, EPA, and CARB certifications
• Eligibility for substantial state and federal incentives, reducing costs for fleet customers

Negative

• None.

Insights

Financial Analyst

The partnership with Papé Kenworth marks a significant expansion for Mullen Automotive's commercial EV distribution network. With Papé's extensive reach across 9 states and 85 cities, this agreement could substantially boost Mullen's market presence and sales potential. However, the financial impact remains uncertain without specific sales projections or revenue-sharing details. The $15,000 and $45,000 incentives for the Mullen THREE in Massachusetts and California, respectively, coupled with the $7,500 Federal Tax Incentive, make Mullen's offerings more competitive. This could potentially accelerate adoption rates, but it's important to monitor how these incentives translate into actual sales figures in the coming quarters.

Automotive Industry Expert

This partnership is a strategic move for Mullen, leveraging Papé Kenworth's established reputation in the commercial vehicle sector. The collaboration addresses two critical challenges for EV manufacturers: distribution and after-sales service. With over 815 service bays and 1,500 technicians, Papé can provide the robust support network essential for commercial EV adoption. The focus on last-mile delivery vehicles aligns well with current market trends, driven by e-commerce growth and urban emission regulations. However, Mullen faces stiff competition from established players and must prove its vehicles' reliability and performance to gain market share. The success of this partnership will largely depend on how well Mullen's products meet the specific needs of Papé Kenworth's existing customer base.

Environmental Policy Analyst

This partnership reflects the growing pressure on commercial fleets to adopt zero-emission vehicles in response to evolving regulations. The mention of adapting to "changing regulations" suggests an increasing awareness of impending environmental policies. The availability of substantial incentives in Massachusetts and California ($15,000 and $45,000 respectively) demonstrates strong government support for EV adoption in the commercial sector. However, the long-term sustainability of these incentives is uncertain. The success of Mullen's EVs will depend not only on meeting regulatory requirements but also on proving their economic viability to fleet operators once incentives potentially phase out. This partnership could accelerate the transition to cleaner commercial transportation, but its environmental impact will ultimately depend on widespread adoption and the source of electricity used to charge these vehicles.

Papé Group, which includes Papé Kenworth, consists of five operating companies with over 150 locations in nine states and 85 cities with over 815 service bays and 1,500 technicians

Papé Kenworth is Mullen’s newest commercial EV dealer and seventh new retailer announced in recent months

BREA, Calif., Sept. 17, 2024 (GLOBE NEWSWIRE) -- via IBN -- Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an electric vehicle (“EV”) manufacturer, announces today the addition of premier full-service dealer, Papé Kenworth, to its commercial EV dealer network. Based in Eugene, Oregon, Papé Kenworth becomes Mullen’s seventh franchise dealer partner expanding fleet opportunities for the Company’s full line of commercial electric vehicles. Papé Group, which includes Papé Kenworth, consists of five operating companies with over 150 locations in nine states, with 815 service bays and more than 1,500 technicians.

With over 30 locations, Papé Kenworth is the West's premiere, full-service Kenworth truck dealer offering an extensive parts inventory and reliable service departments, dedicated to providing reliable, durable trucking equipment solutions that help its customers meet their operational needs and uptime standards. To continue this partnership with customers now facing adapting to evolving regulations, Kenworth provides zero-emissions trucks for a wide range of applications.

By combining Mullen’s innovative commercial EV lineup with Papé Kenworth’s extensive network of dealerships, deep understanding of the commercial truck market, and strong reputation for exceptional customer service, the partnership aims to accelerate the adoption of commercial EVs across the region.

The partnership aligns with Mullen’s commitment to providing widespread access to its innovative electric vehicles and Papé Kenworth’s dedication to offering a variety of transportation solutions to meet all of its customers’ needs. With a strong reputation for exceptional customer service and a vast network across the West, Papé Kenworth will play a crucial role in introducing Mullen’s commercial EVs to a broader market.

"We are excited to welcome Mullen to our commercial EV lineup. This addition allows us to not only meet our customers' needs and maintain their uptime standards, but also to be a partner with our customers as they adapt to changing regulations," said Dave Laird, Papé Kenworth president.

“Papé Kenworth is a hallmark dealer and distributor with unmatched and deep experience in supporting the nation’s fleet to meet its equipment and logistics needs,” said David Michery, CEO and chairman of Mullen Automotive. “Their extensive reach and expertise in the commercial vehicle industry will play a crucial role in introducing Mullen’s commercial EVs to a broader market.”

Mullen’s commercial EV lineup includes the Mullen ONE, Class 1 EV cargo van, and Mullen THREE, Class 3 EV cab chassis truck, purpose-built to meet the demands of urban last-mile delivery. Both vehicles are available for sale and in full compliance with U.S. Federal Motor Vehicle Safety Standards, EPA and CARB certifications.

The Mullen THREE was recently qualified for a $15,000 incentive through the State of Massachusetts MOR-EV program and a $45,000 cash rebate voucher through the California Hybrid and Zero-Emission Truck and Bus Voucher Incentive Program (HVIP). The Mullen ONE is also eligible for the MOR-EV program with a $3,500 rebate in Massachusetts. When combined with the $7,500 Federal Tax Incentive, both vehicles offer substantial savings for commercial fleet customers.

About Papé Kenworth
Papé Kenworth is a part of The Papé Group, a premier capital equipment provider in the West. For over 85 years, Papé has worked to maximize customers' uptime through top-quality equipment, convenient maintenance service, and the best customer service. This fourth-generation, family-owned company is dedicated to providing customers with quality products and unmatched service. As the leading supplier of construction, logging, material handling, landscaping, trenching and farm equipment, as well as semi-trucks and warehouse products, Papé makes good on providing customers with end-to-end solutions.

To learn more about Papé Kenworth, please visit www.PapeKenworth.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 $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 and Range Truck Group, providing sales and service coverage in key Midwest, West Coast and Pacific Northwest 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, whether Papé Kenworth will be successful in selling and servicing Mullen’s vehicles, how long governmental incentives for electric vehicles will remain in place, and the resultant selling prices of Mullen vehicles. 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.

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

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

Attachments

• Papé Kenworth Operates over 30 Dealerships in the Western U.S.
• Papé Kenworth is a part of The Papé Group, a Premier Capital Equipment Provider in the West

FAQ

What is the new sales and service agreement Mullen Automotive (MULN) has entered?

Mullen Automotive (MULN) has entered into a sales and service agreement with Papé Kenworth, a premier full-service dealer, to expand its commercial EV dealer network.

How many franchise dealer partners does Mullen (MULN) now have for its commercial EVs?

With the addition of Papé Kenworth, Mullen (MULN) now has seven franchise dealer partners for its commercial EV lineup.

What commercial EV models does Mullen (MULN) offer?

Mullen (MULN) offers the Mullen ONE, a Class 1 EV cargo van, and the Mullen THREE, a Class 3 EV cab chassis truck, both designed for urban last-mile delivery.

Are there any incentives available for Mullen's (MULN) commercial EVs?

Yes, Mullen's (MULN) commercial EVs are eligible for various incentives, including a $15,000 incentive through Massachusetts' MOR-EV program, a $45,000 rebate through California's HVIP program, and a $7,500 Federal Tax Incentive.