Mullen Opens Dominican Republic and Caribbean Markets for Commercial EVs
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Insights
The announcement of Grupo Cavel's purchase of 20 Mullen CAMPUS EV cargo vans represents a strategic move within the electric vehicle (EV) market, particularly in the Latin American and Caribbean regions. This agreement signifies a growing demand for EVs in these markets, a trend that is consistent with global shifts towards sustainable transportation solutions. Grupo Cavel's commitment to ongoing vehicle orders and the establishment of a sales and service distribution channel for Mullen's commercial EVs could potentially lead to increased market penetration and brand visibility for Mullen Automotive.
From a market research perspective, the partnership could be beneficial for both entities. Mullen Automotive gains a foothold in a new market with a partner experienced in vehicle sales and distribution, which could lead to further expansion opportunities. For Grupo Cavel, this diversifies their offering and positions them as a pioneer in the commercial EV space within their operational regions. The Dominican Republic's status as a leader in EV adoption per capita in Latin America underscores the potential for market receptivity and growth.
For investors, the announcement by Mullen Automotive to supply Grupo Cavel with EV cargo vans is likely to be viewed as a positive development. The initial order, although modest in volume, establishes a new revenue stream and could be indicative of future sales potential in the region. The financial impact of this deal on Mullen's top-line growth will depend on the regularity and size of subsequent orders from Grupo Cavel. Additionally, the establishment of a sales and service network in the region could lead to lower barriers to entry for future Mullen products, potentially improving long-term financial prospects.
It is important to monitor the execution of this partnership and the subsequent market response to Mullen's CAMPUS EVs in the new territory. Success in the Dominican Republic and the Caribbean could serve as a case study for expansion into similar markets and might positively affect investor sentiment and the company's stock performance. However, investors should consider the scalability of Mullen's production capabilities and the company's ability to meet increasing demand without compromising quality or delivery timelines.
From an environmental economics standpoint, the shift towards electric vehicles in the Dominican Republic and Caribbean markets aligns with broader efforts to reduce carbon emissions and combat climate change. The adoption of EVs by Grupo Cavel's Electric Motors dealerships may contribute to a reduction in greenhouse gas emissions, especially if the electricity used to charge these vehicles is generated from renewable sources. The warm climate of the region is cited as an advantageous condition for EV operation, potentially leading to better battery performance and longevity, which can positively affect the total cost of ownership and environmental impact.
Moreover, the expansion of the EV market in these regions could stimulate local economies by creating new jobs related to the sales, service and maintenance of electric vehicles. It could also encourage the development of supporting infrastructure, such as charging stations, which are essential for the widespread adoption of EVs. The long-term environmental and economic benefits of such developments could be substantial, contributing to sustainable growth and energy independence.
Grupo Cavel to Purchase Mullen CAMPUS EV Cargo Vans for Its Electric Motors Dealerships
Initial order is for 20 CAMPUS EV cargo vans with regular scheduled orders to follow
BREA, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) -- via IBN – Mullen Automotive, Inc. (NASDAQ: MULN) (“Mullen” or the “Company”), an emerging electric vehicle (“EV”) manufacturer, announces today a vehicle order with Grupo Cavel (“Cavel”) to purchase Mullen CAMPUS EV cargo vans for sale in the Dominican Republic and Caribbean markets via Cavel’s Electric Motors dealerships. Mullen CAMPUS EV cargo vans are currently distributed through Mullen’s retail dealership partner, Randy Marion Automotive Group (“Randy Marion” or “RMA”).
Grupo Cavel’s first vehicle order includes 20 CAMPUS EV cargo vans, which will be sold via its Electric Motors dealership group. Cavel plans to continue ongoing vehicle orders and will be establishing a sales and service distribution channel for Mullen’s lineup of commercial EVs in the Dominican Republic and Caribbean.
In addition to being a key retail automotive group in the Dominican Republic, Grupo Cavel also has substantial relationships in vehicle sales, distribution, warranty and servicing throughout the Caribbean. The Dominican Republic is a leading country among Latin American countries with the most electric vehicles per capita.
“Our commitment to electric vehicles began with the introduction of the first electric motorcycles in the Dominican Republic, which grew into offering five brands through our Electric Motors dealerships. Today we made an important decision by adding Mullen’s commercial vehicles to our portfolio,” said Joel Tavarez, CEO of Grupo Cavel, the parent company of Electric Motors. “The Mullen EVs establish a new level of quality among commercial vehicles and we are confident they will excel in the Dominican Republic and the broader region.”
“This is an important relationship for Mullen with a strong partner in Grupo Cavel, opening doors to a new market in the Dominican Republic and Caribbean, where the warm weather also provides a near-perfect operating environment for EVs,” said David Michery, CEO and chairman of Mullen Automotive.
The Mullen CAMPUS is a highly efficient electric van designed for low-speed, closed-campus use. The fully battery-operated vehicle (“BEV”) will be used for closed-campus transportation, providing cargo capacity and operator comfort. The CAMPUS delivery van has all the same DNA as the Mullen ONE but was purpose-built to be an ideal delivery solution for micro-environments.
About Mullen
Mullen Automotive (NASDAQ: MULN) is a Southern California-based automotive company building the next generation of electric vehicles (“EVs”) that will be manufactured in its two United States-based assembly plants. Mullen’s EV development portfolio includes the Mullen FIVE EV Crossover, Mullen-GO Commercial Urban Delivery EV, Mullen Commercial Class 1-3 EVs and Bollinger Motors, which features both the B1 and B2 electric SUV trucks and Class 4-6 commercial offerings. On Sept. 7, 2022, Bollinger Motors became a majority-owned EV truck company of Mullen Automotive, and on Dec. 1, 2022, Mullen closed on the acquisition of Electric Last Mile Solutions’ (“ELMS”) assets, including all IP and a 650,000-square-foot plant in Mishawaka, Indiana.
To learn more about the Company, visit www.MullenUSA.com.
About Grupo Cavel
Grupo Cavel, with experience of more than 45 years, is one of the largest business groups in the Dominican Republic, with operations in that country, the United States and Guyana and a wide portfolio ranging from office equipment, construction materials, education, imports and entertainment. Grupo Cavel is the leader in electric mobility in the region and, together with its company Electric Motors, they have introduced different brands and models to the local market, being leaders and pioneers.
To learn more about the company, visit www.GrupoCavel.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 Grupo Cavel (“Cavel”) will order additional vehicles beyond the initial order placed and whether the CAMPUS EV cargo vans will be a success in the Dominican Republic and Caribbean markets. 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:
InvestorBrandNetwork (IBN)
Los Angeles, California
www.InvestorBrandNetwork.com
310.299.1717 Office
Editor@InvestorBrandNetwork.com
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